Skip to content

Banker's Toolbox, Inc., leaders in compliance solutions for financial institutions, announced the acquisition of Georgia-based MainStreet Technologies (MST). MST is an industry leader in the loan risk management space. This acquisition adds to a strong and growing portfolio of compliance-related solutions and will continue to enhance the value Banker's Toolbox brings to both their customers and the industry. (Read full press release here.)

Top Story Lending Related


FDIC lists 7 CRA ratings of outstanding

The FDIC has released a list of 88 banks that the agency assigned CRA evaluations to in March 2019. As is normally the case, most of the banks received "Satisfactory" ratings. Three "Needs to Improve" ratings were listed (two banks in Pennsylvania and one in Califormia). These seven banks were listed with "Outstanding" evaluations:


IRS adds safeguard for taxpayer data

The IRS has announced that, as part of its ongoing efforts to protect taxpayers from identity thieves, it will stop its tax transcript faxing service in June and will amend the Form 4506 series to end third-party mailing of tax returns and transcripts in July. Starting June 28, 2019, the IRS will stop faxing tax transcripts to both taxpayers and third parties, including tax professionals and lenders. Third-party mailings will stop July 1. This action affects individual and business transcripts.

The IRS notice includes suggested alternatives for income verification, including copies of transcripts mailed to a taxpayer's address of record, and use of the IRS's Income Verification Express Service (IVES).


McWilliams on CRA reform

In a speech delivered yesterday at the Community Development Bankers Association Peer Forum and Membership Meeting, FDIC Chairman Jelena McWilliams said that the agency is working with the OCC and Federal Reserve on a revised regulatory framework for the Community Reinvestment Act that will—

  • focus on clarifying what activities qualify for CRA credit
  • review how lending—including digital lending—is assessed by banks outside of their branch network footprints
  • work to ensure that CRA investments target those most in need in a bank's community


    Flood insurance program extension to September 30

    The House has accepted the Senate amendment to H.R.2157 with additional appropriations for disaster relief, which includes another extension for funding of the National Flood Insurance Program, this time through September 30, 2019. The bill is expected to be signed by the president. In the meantime, momentum seems to be building for consideration of a longer term extension with reforms.


    FHFA announces new UMBS

    In a statement issued yesterday, FHFA Deputy Director Robert Fishman announced the launch of the new Uniform Mortgage-Backed Security (UMBS), which combines the separate Fannie Mae and Freddie Mac To-Be-Announced markets into one.


    Avoiding mortgage closing scams

    The CFPB has posted an article explaining ways consumers can protect themselves from mortgage closing scams. A mortgage closing checklist is included.


    Bureau updates TRID FAQs

    The Consumer Financial Protection Bureau has updated its TILA-RESPA Integrated Disclosure ("TRID") FAQs. The FAQs address questions relating to:

    • Corrected closing disclosures and the three business-day waiting period before consummation
    • Model forms
    • Construction loans (added)


    FDIC April enforcement actions

    The FDIC has released a list of administrative enforcement actions taken against banks in April 2019. The agency imposed:

    • an $18,812 civil money penalty on Bank of Bluffs, Bluffs, Illinois, for violations of the Flood Disaster Protection Act (FDPA) and/or the notice requirements under the National Flood Insurance Act (NFIA)
    • a $17,700 civil money penalty on Firstbank Puerto Rico, Santurce, Puerto Rico, for violations of the FDPA
    • a $3,520 civil money penalty on Allegiance Bank, Houston, Texas, for violations of the FDPA
    • a $1,250,000 civil money penalty on Alma Bank, Astoria, New York, for violation of the Bank Secrecy Act and its implementing regulations

    Also reported were removal/prohibition orders issued to:

    • a former director of human resources of a Texas bank who knowingly and without authority took salary increases and bonuses for himself
    • a former loan secretary of a Texas bank who misappropriated more than $200,000 in bank proceeds
    • a former teller of a California bank who embezzled and/or stole funds from a bank customer's account


    Flood insurance extension approved

    The House has passed S.1693, which, when signed by the president, will extend funding for the National Flood Insurance Program for two weeks, through June 14, 2019. Now the focus is shifted to the House's consideration of a Senate-approved disaster relief package, which includes a six-month extension for the NFIP.


    CFPB Quarterly Consumer Credit Trends Report

    The Bureau has released its May 2019 Quarterly Consumer Trends Report, "Timing of Applications for Consumer Credit," which explores the relationship between fluctuations in consumers’ credit scores and the timing of consumers’ applications for credit. The report analyzes data from the Bureau’s Consumer Credit Panel (CCP), a longitudinal, nationally representative sample of approximately five million de-identified credit records maintained by one of the three nationwide credit reporting companies. The report focuses on consumers whose credit scores showed large increases or decreases between 2009 and 2017.

    A Bureau Blog article announcing the report lists these key findings:

    • Although a number of individuals have relatively stable credit scores, about two-thirds of consumers in the CCP experienced large changes (over 100 points) between 2009 and 2017. Among consumers with these large credit score changes, about twice as many consumers experience their maximum score before their minimum score.
    • Consumers with large changes in their credit scores in either direction tend to be younger and have considerably lower credit scores on average than consumers with more stable scores.
    • Consumers are more likely to apply for a general purpose credit card (or, much less commonly, an increase in their existing credit limit) as their scores approach the maximum and minimum scores observed for the borrower over the period of analysis.
    • Consumers’ application rates drop sharply as consumers reach their minimum scores, and then, after hitting bottom their application rates trend steadily upward. The decline in application rates around the minimum score cannot be explained by sudden drops in credit scores, nor can it be explained by bankruptcies.
    • These patterns of application rates generally hold regardless of the levels of minimum and maximum credit scores. However, the patterns are generally more muted for those with higher levels of maximum and minimum scores.


    Training View All

    Penalties View All

    Search Top Stories