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How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.

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Fed bans former Virginia banker

The Federal Reserve Board announced yesterday it has issued a consent prohibition order to a former branch manager of Highlands Union Bank, Abingdon, Virginia, for violating lending policies for her own benefit by generating loans for relatives and for her own benefit, and failing to send the loans to the bank's loan operations department for booking.


Bill to extend NFIP funding through 11/21 gets Senate OK

The Senate passed a bill to extend the funding of the National Flood Insurance Program to November 21, 2019, and has sent it to the president for his signature. Funding for the NFIP is currently due to expire Monday, September 30.


NCUA and SBA loan programs webinar

The NCUA and SBA have announced they will co-host on October 1 “The Big Picture of SBA Lending for Credit Unions—Part 1,” a webinar that will discuss:

  • A brief history of the SBA;
  • SBA benefits to a borrower and to a credit union;
  • An overview of SBA programs; and
  • How offering small business loans may align with a credit union’s mission.


House passes SAFE Banking Act bill

The House of Representatives approved its SAFE Banking Act bill in a bipartisan vote yesterday. The bill now goes to the Senate, where its fate is uncertain. As passed by the House, the bill would allow banks to serve cannabis-related businesses in the 33 states where marijuana is legal at some level, and prohibit federal regulators from acting against a bank solely because marijuana is involved.


CFPB sues debt collection firm and subs

The CFPB announced yesterday it had filed suit against Fair Collections & Outsourcing and Michael E. Sobota, the owner and CEO of its holding company. The suit against Soboda, FCO Holding, Inc. and its subsidiaries, Fair Collections & Outsourcing, Inc., Fair Collections & Outsourcing of New England, Inc., and FCO Worldwide, Inc. alleges that FCO violated the Fair Credit Reporting Act, Regulation V and the Consumer Financial Protection Act by:

  • failing to establish or implement reasonable written policies and procedures regarding the accuracy and integrity of the information it furnished to consumer reporting companies, specifically with respect to its handling of indirect disputes;
  • failing to consider or incorporate the appropriate guidelines in developing its policies and procedures regarding the handling of indirect disputes;
  • failing to review its indirect dispute handling policies and procedures and update them as necessary to ensure their continued effectiveness;
  • failing to conduct a reasonable investigation, or any investigation, and review all relevant information in its handling of indirect disputes; and
  • furnishing information about accounts before or without conducting an investigation into the accuracy of the information it was furnishing after receiving identity theft reports from consumers disputing such accounts.

The complaint also alleges that FCO and Sobota violated the Fair Debt Collection Practices Act when FCO represented that consumers owed certain debts when, in fact, FCO did not have a reasonable basis to assert that the consumers owed those debts. The Bureau's action seeks an injunction, as well as damages, redress, disgorgement of ill-gotten gains, and the imposition of a civil money penalty.


Bureau releases new HMDA guides

The CFPB has published its Filing Instructions Guide (FIG) for data collected in 2020 and a new resource, the Supplemental Guide for Quarterly Filers. Both are available on the Bureau's HMDA Help for Filers webpage.


CFPB adds FAQs on EGRRCPA impact on SAFE Act

The CFPB has issued four FAQs pertaining to compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) as of November 24, 2019, the effective date of the 2018 amendments to the statute made by the EGRRCPA. The FAQs explain

  • the categories of loan originators (Registered and State-Licensed and Loan Originator with Temporary Authority) under the SAFE Act
  • where loan originators can exercise temporary authority
  • Bureau guidance on state transitional licenses
  • that the EGRRCPA amendments to the SAFE Act won't affect the permissibility of transitional licensing


House price index increases

U.S. house prices rose in July, up 0.4 percent from the previous month, according to the Federal Housing Finance Agency House Price Index. House prices rose 5.0 percent from July 2018 to July 2019. The previously reported 0.2 percent increase for June 2019 remains unchanged.


CFPB Summer Supervisory Highlights

The CFPB has published [84 FR 49250] Issue 19 (Summer 2019) of its Supervisory Highlights, featuring findings in the areas of automobile loan origination, credit card account management, debt collection, furnishing of information to credit reporting companies, and mortgage origination identified in examinations that were generally completed between December 2018 and March 2019. More specifically, the report cites:

  • Automobile loan origination: Abusive acts or practices when selling add-on GAP products, such as selling such a product to consumers whose low loan-to-value meant they would not benefit from the product.
  • Credit card account management:
    • Failures to clearly and conspicuously provide disclosures required by triggering terms in online ads
    • offsets against consumers' deposit funds without sufficient documentation of the consumers' sufficient awareness of and intent to grant a security interest in those funds
    • deceptive threats of repossession or foreclosure in credit card collections
    • deceptive marketing of secured credit card accounts
  • Debt collection: False representation of the amount and legal status of debt
  • Furnishing credit information:
    • Failure to conduct an investigation or respond to a credit reporting company (CRC) after receipt of a dispute from the company
    • Failure to report to all applicable CRCs updates or corrections to information found to be incomplete following a dispute investigation
    • Failures to promptly send corrections or updates to all applicable CRCs after determining that previously furnished information about certain accounts was no longer accurate.
    • Failures of one or more furnishers of deposit account information to furnish updated information regard accounts that were paid in full or settled in full.
    • Failures by one or more furnishers of deposit account information to notify a nationwide specialty CRC that the information was disputed by consumers.
    • Failures to implement reasonable written policies and procedures regarding the accuracy and integrity of deposit account information it furnished to nationwide specialty CRCs
  • Mortgage origination: Inaccurate APR and Total Annual Loan Cost (TALC) disclosures in reverse mortgages


Phiily Fed lowers discount rate

The Federal Reserve Board has announced its approval of the Board of Directors of the Federal Reserve Bank of Philadelphia decreasing the discount rate (the primary credit rate) at the Bank from 2‑3/4 percent to 2-1/2 percent, effective September 20. The Fed Board previously approved similar actions by the Reserve Banks of Boston, New York, Cleveland, Richmond, Atlanta, St. Louis, and Kansas City, effective September 19.


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