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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.


Top Story Lending Related

09/23/2019

CFPB and FTC to host credit reporting accuracy workshop

The CFPB and the FTC will host a public workshop on December 10, 2019, to discuss issues affecting the accuracy of both traditional credit reports and employment and tenant background screening reports. The agencies seek to bring together stakeholders – including industry representatives, consumer advocates, and regulators – for a wide-ranging public discussion on the many issues impacting the accuracy of consumer reports. The agencies invite interested individuals to submit comments recommending topics that should be addressed or specific information on the following potential topics for discussion:

  • What are the lessons from the CFPB’s supervisory reviews of CRAs and furnishers on accuracy and dispute obligations?
  • What are the lessons from CFPB and FTC enforcement cases on furnisher and CRA accuracy obligations?
  • How do furnishing practices differ based on the types of furnishers and information they furnish to CRAs and how does that impact accuracy?
  • What has been the effect of the removal of most civil judgments and tax liens from credit reports and recent changes in the reporting of medical debt?
  • How do background screening CRAs address accuracy in light of the limited personal identifying information included in public records?
  • What opportunities or challenges does inclusion of non-traditional data in credit reports, credit scoring models, or background screening reports present for accuracy?
  • Can new technologies and data management practices be used to improve accuracy?
  • How do consumers learn about inaccuracies on their consumer reports and navigate the current dispute process? What are the experiences of victims of identity theft in the dispute process?
  • How have the changes to the dispute process contained in the National Consumer Assistance Plan, which evolved out of the 2015 multi-state settlement, impacted the consumer experience?
  • Once consumers get erroneous information removed from their credit files through the dispute process do they still have difficulties getting loans or other credit?
  • What government measures (including changes in the law) and private sector measures could improve accuracy? What are the costs and benefits of these possible measures?

Comments may be submitted until January 20, 2020.

09/23/2019

FEMA suspending communities in two states on Friday

The Federal Emergency Management Agency has published [84 FR 49676] a notice in this morning's Federal Register identifying communities in Alaska and Mississippi that are scheduled for suspension from the National Flood Insurance Program on Friday, September 27, 2019, for noncompliance with the floodplain management requirements of the program. The affected communities are:

  • AK: Matanuska-Susitna Borough
  • MS: Picayune, Poplarville, and unincorporated areas of Hancock and Pearl River Counties

Lenders should verify the status of the identified communities, because they may adopt and submit the required documentation of legally enforceable floodplain management measures prior to the scheduled suspension date.

09/20/2019

OCC announces enforcement actions

The OCC has released a list of recent enforcement actions taken against individuals now or formerly affiliated with OCC-supervised institutions:

  • A Notice of Charges for an order of prohibition was issued against a former teller of PNC Bank, Wilmington, Delaware, who misappropriated cash from his teller drawer and a ATM, over both of which he had sole control. The Notice announces the OCC’s intention to issue the order of prohibition, subject to the respondent’s right to an administrative hearing of the OCC’s charges.
  • Removal and prohibition orders were issued to:
    • a former teller of The Huntington National Bank, Columbus, Ohio, whom the OCC found to have misappropriated a total of $11,000 in cash while clearing customer cash deposits from ATMs and falsified general ledger tickets to conceal the misconduct
    • a former loan officer of The City National Bank and Trust Company, Lawton, Oklahoma, whom the OCC found to have submitted false or misleading information related to eight loans totaling $7,081,446 from four financial institutions, causing those institutions to lose the total value of the loans. The former loan officer pled guilty to one count of fraud and one count of wire fraud and agreed to pay restitution of $7,081,446 to the four financial institutions.
    • a former phone banker of Wells Fargo Bank, National Association, Sioux Falls, South Dakota, on the basis of activities while serving as a phone banker . The OCC found that the former banker provided bank customers’ credit card numbers to unauthorized individuals who fraudulently used the information, causing a loss to the bank of approximately $7,975.
    • a former branch associate of Capital One, National Association, McLean, Virginia. The OCC found that the former banker assigned temporary debit cards to two customers' accounts without their permission and withdrew a total of $22,606.50 at automated teller machines using the cards.

09/20/2019

Changes to FDIC post-exam survey process

In FIL-50-2019 the FDIC is notifying FDIC-supervised financial institutions that the Office of the Ombudsman, which is independent of the supervisory process, reports directly to the FDIC Chairman's office, and is a confidential resource for banks, is now administering the Post-Examination Survey process.

The Office of the Ombudsman will:

  • Assume responsibility for soliciting Survey responses effective October 1, 2019;
  • Send notice that the Survey will accompany the Report of Examination;
  • Provide a reminder to encourage participation in the Survey; and
  • Serve as the contact point for banks regarding the Survey and follow-up requests.

The FIL includes links to the current post-exam survey questions for the Safety and Soundness and the Compliance and CRA exams.

09/20/2019

Discount rate decreased

The Federal Reserve Board announced its approval yesterday of requests from the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, Richmond, Atlanta, St. Louis, and Kansas City, to decrease the discount rate (the primary credit rate) at the Banks from 2‑3/4 percent to 2-1/2 percent, effective immediately.

09/19/2019

FTC staff comments on CFPB proposed FDCPA rules

The Federal Trade Commission staff has submitted comments to the CFBP regarding proposed rules that implement the Fair Debt Collection Practices Act (FDCPA). Their comments included:

  • changes that would improve the types of information debt collectors are required to provide to people from whom they are attempting to collect and how, when, and where collectors are allowed to make contact with consumers
  • issues around debt that has passed the statute of limitations, the sale and transfer of debt, the collection of debts involving people who are deceased, and restrictions on the disclosure of information about debt to third parties

09/19/2019

FOMC statement and projections

The Federal Reserve Board has issued a statement regarding the recent meeting of the Federal Open Market Committee: "Information received since the Federal Open Market Committee met in July indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports have weakened. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed. ... Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-3/4 to 2 percent."

Tables and charts summarizing the economic projections and the target federal funds rate projections were also released.

09/19/2019

FHFA ends MSR pilot program

The Federal Housing Finance Agency has announced the end of the Mortgage Servicing Rights (MSR) financing pilot program for Fannie Mae and Freddie Mac. The MSR pilot began in 2018 to provide financing to non-bank servicers as they continue to account for a growing percentage of the overall servicing portfolio. While both Enterprises were approved for the MSR pilot, only Freddie Mac chose to participate.

09/18/2019

Treasury proposes FIRRMA regs

The Treasury Department announced yesterday it has issued two proposed regulations to comprehensively implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and to better address national security concerns arising from certain investments and real estate transactions. The regulations strengthen and modernize the Committee on Foreign Investment in the United States (CFIUS), an interagency committee authorized to review certain transactions involving foreign investment in the United to determine the effect of such transactions on the national security of the United States.

Comments on the proposed rules will be accepted through October 17, 2019. Treasury intends to issue final rules to take effect no later than February 13, 2020.

09/17/2019

Reminder on use of appraisal management companies

The OCC has issued Bulletin 2019-43 to remind banks that engage appraisal management companies (AMCs) of the new registration requirement for AMCs that became effective on August 10, 2019. Under this requirement, AMCs must register with the state or states in which they do business and must be subject to state supervision. Federal law bars AMCs from providing appraisal management services to financial institutions for consumer credit transactions secured by a consumer’s principal dwelling that are federally related transactions if the AMCs are not registered as required. The bulletin discusses considerations for banks with regard to confirming AMC registration as part of sound third-party risk management and suggests alternatives that banks can use when no registered AMCs are available.

The OCC's rules on banks' use of AMCs can be found in 12 CFR 34, subpart H. The same requirements are included in the Federal Reserve Board's Regulation H, subpart E, and the FDIC's requirements are found in 12 CFR 323 subpart B.

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