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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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OFAC tags shipping network, oil tanker and captain

OFAC has announced the North Korea-related designations of two individuals and three entities, and further identified one vessel as blocked property. Taiwan-based individuals Huang Wang Ken and Chen Mei Hsiang and the Taiwan-based entities Jui Pang Shipping Co Ltd (Jui Pang) and Jui Zong Ship Management Co Ltd (Jui Zong), as well as Hong Kong-based entity Jui Cheng Shipping Company Limited (Jui Cheng) were designated. For identification details, see BankersOnline's OFAC Update.

OFAC also announced its designation of the Adrian Darya 1, an oil tanker transporting Iranian crude oil ultimately benefiting Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the tanker's captain, Akhilesh Kumar. Identification details are in this BankersOnline OFAC Update.


FDIC enforcement actions

The FDIC has issued a list of recent enforcement actions recently taken against FDIC-supervised institutions and individuals now or formerly associated with FDIC-supervised institutions. Among those actions was a consent order to pay a $12,400 civil money penalty issued to a Marksville, Louisiana, bank for a pattern or practice of violations of the Flood Disaster Protection Act.

The FDIC also issued a Prohibition Order to a former accounting clerk at Boonville Federal Savings Bank, Boonville, Indiana, having found that she had transferred over $132,000 in bank funds to an account she controlled and used the funds for her personal benefit. A Notice of Charges and Hearing were issued to a former executive vice president and commercial relationship manager of First NBC Bank (in receivership), New Orleans, Louisiana, notifying the respondent of the FDIC's intention to prohibit him from further participation in the business of banking, and assess a civil money penalty of $125,000. The Notice provides the respondent an opportunity to be heard at an administrative hearing concerning the FDIC's allegations of numerous lending irregularities.

In addition, four financial institutions were issued consent orders to cease and desist.


FHA expands mortgage relief options

The Federal Housing Administration has expanded the foreclosure prevention options available to borrowers in Presidentially Declared Major Disaster Areas (PDMDAs) with delinquent FHA-insured mortgages to bring their mortgages current without increasing their interest rates or principal and interest payments. Effective immediately, FHA’s “Disaster Standalone Partial Claim” will now be a standard mortgage relief option available for all victims of natural disasters in all PDMDAs. The Disaster Standalone Partial Claim option provides these homeowners with an opportunity to be evaluated for a permanent loss mitigation solution. This option is a solution for many homeowners seeking to cure arrearages and resume making payments without modifying their loan and re-amortizing the loan term.

A letter regarding the additional options has been transmitted to mortgage servicers.


Regulators schedule Memphis CRA workshop

The OCC, FDIC, and the FRB of Atlanta will cosponsor a workshop in Memphis, Tennessee, on August 28, 2019, designed for Community Reinvestment Act (CRA) officers of small or intermediate-small banks interested in obtaining up-to-date information on developing a CRA Plan for their banks; forming meaningful partnerships; learning about qualified community development lending, services, and investments; assessing community needs; and drafting a bank's CRA Performance Context. In addition, regulators will highlight best practices that banks employ in terms of partnerships and initiatives to improve CRA performance.


Agencies' webinar on CECL model risk management

The FDIC has issued FIL-48-2019 to announce that the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency will jointly host a webinar to clarify the use of model risk management by large institutions for model-based processes employed in their CECL frameworks. The webinar is scheduled for Tuesday, September 3, 2019, at 2:00 p.m. EDT.


FDIC clarifies safety and soundness exam focus

FDIC FIL-47-2019, issued yesterday, announced an update to the agency's Risk Management Manual of Examination Policies (the Manual) to incorporate a new section titled Risk-Focused, Forward-Looking Safety and Soundness Supervision. The latter describes the FDIC's long-standing philosophy and methods for supervising institutions by focusing on the areas presenting the greatest risks. The new section has been included in the new Part VI of the Manual titled "Appendix: Examination Processes and Tools," and describes communication and risk-tailoring principles followed during safety and soundness examination activities.


CFPB report on consumer credit card market

The Bureau has released its fourth biennial report on the state of the credit card market for the period 2017-2018. The report indicates credit cards remain central to Americans’ financial lives, constituting the largest U.S. consumer lending market (measured by the number of users). Market conditions remain stable as a result of low unemployment, modest wage growth and high consumer confidence. Consumer satisfaction with credit cards remains high and debt service burdens are near the lowest level in more than a decade. Late payment and default rates have risen modestly but remain below pre-recession levels.

UPDATE: Published at 84 FR 48331 on 9/13/2019


OCC schedules CRA evaluations

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the fourth quarter 2019 and first quarter 2020. The list is sorted by city within states.


House prices up in second quarter

The Federal Housing Finance Agency reports that U.S. house prices rose in the second quarter of 2019, up 1.0 percent according to the FHFA House Price Index. House prices rose 5.0 percent from the second quarter of 2018 to the second quarter of 2019. FHFA's seasonally adjusted monthly index for June was up 0.2 percent from May. U.S. house prices have risen for 32 consecutive quarters.


OCC schedules Chicago workshops

The OCC will host two workshops at the OCC Central District Office in Chicago, October 1 and 2, for directors of institutions supervised by the OCC.

  • The Risk Governance: Improving Director Effectiveness workshop on October 1 provides practical information for directors to effectively measure and manage risks. The workshop also focuses on the OCC's approach to risk-based supervision and major risks in the financial industry.
  • The Credit Risk: Directors Can Make a Difference workshop on October 2 focuses on credit risk within the loan portfolio, such as identifying trends and recognizing problems. The workshop also covers the roles of the board and management, how to stay informed of changes in credit risk, and how to effect change.

This is the last scheduled offering of each of these workshops for 2019.


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