Skip to content

How to gain more from operational risk management practices.
Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.

Top Story Lending Related


FinCEN Advisory on cybercrime during pandemic

Advisory FIN-2020-A005 has been issued by FinCEN to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. Many illicit actors are engaged in fraudulent schemes that exploit vulnerabilities created by the pandemic.

The advisory contains descriptions of COVID-19-related malicious cyber activity and scams, associated financial red flag indicators, and information on reporting suspicious activity. FinCEN will continue issuing COVID-19-related information to financial institutions to help enhance their efforts to detect, prevent, and report suspected illicit activity on its website


Treasury and USPS agree on CARES Act loan terms

Treasury has reached an agreement with the United States Postal Service on the material terms and conditions of a loan of up to $10 billion to the USPS under Section 6001 of the CARES Act. The loan will be documented in an agreement to be developed and executed by Treasury and the USPS. The CARES Act authorizes the USPS to borrow up to $10 billion from Treasury for operating expenses if the USPS determines that, due to the COVID-19 emergency, it will not be able to fund operating expenses without borrowing money.

Treasury Secretary Mnuchin noted that the USPS does not need the funding now, but the material terms and conditions of a loan have been agreed upon should the need arise.


Kraninger updates Senate Banking Committee

In oral testimony before the Senate Banking Committee, CFPB Director Kathleen Kraninger discussed the steps the Bureau is taking to help create real and sustainable changes in the U.S. financial system so that African Americans and other minorities have equal opportunities to build wealth and close the economic divide. Kraninger also discussed the actions taken to protect consumers during the COVID-19 pandemic.


FOMC Statement issued

The Federal Reserve Board has issued the Federal Open Market Committee statement, following the meeting of the FOMC that ended Wednesday, July 29.

In light of developments surrounding the coronavirus pandemic, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent, and expects to maintain that target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.


Fed extends temporary swap lines and FIMA repo facility

The Federal Reserve Board announced Wednesday it is extending its temporary U.S. dollar liquidity swap lines and the temporary repurchase agreement facility for foreign and international monetary authorities (FIMA repo facility) through March 31, 2021. The extensions of these facilities will help sustain recent improvements in global U.S. dollar funding markets by maintaining these important liquidity backstops. In addition, the FIMA repo facility will help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market.


CFPB requests input on creating inclusive fair credit environment

The CFPB has issued a request for information to seek public input on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination in all aspects of a credit transaction. The information provided will help the Bureau continue to explore ways to address regulatory compliance challenges while fulfilling the Bureau's core mission to prevent unlawful discrimination and foster innovation.

The Bureau is substituting the request for information for a symposium on Equal Credit Opportunity Act issues that had been planned for the fall.

Comments on the request will be accepted for 60 days following publication in the Federal Register.

PUBLICATION UPDATE: Published at 85 FR 46600 on August 3, 2020. Comments will be due by October 2, 2020.

UPDATE: The Bureau has announced it will extend the comment period by 60 days to end December 1, 2020.


FFIEC Appraisal Subcommittee to meet today

The FFIEC Appraisal Subcommittee has published in today's Federal Register a Notice of a special meeting of the subcommittee in open session at 4:00 p.m. ET on July 29, to discuss and act upon a North Dakota request to extend the Commercial Temporary Waiver Relief.

The public may view the meeting via live webcast only, but must register in advance using the registration link for the meeting in the What's New box on the subcommittee's webpage.


Fed extends support programs through year's end

The Federal Reserve Board announced Tuesday it will extend through December 31 its lending facilities that were scheduled to expire on or around September 30. The three-month extension will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available to help the economy recover from the COVID-19 pandemic.

The extensions apply to the—

  • Primary Dealer Credit Facility
  • Money Market Mutual Fund Liquidity Facility
  • Primary Market Corporate Credit Facility
  • Secondary Market Corporate Credit Facility
  • Term Asset-Backed Securities Loan Facility
  • Paycheck Protection Program Liquidity Facility
  • Main Street Lending Program

The Municipal Liquidity Facility is already set to expire on December 31, with the Commercial Paper Funding Facility set to shut down on March 17, 2021.


CFPB settles with mortgage companies

The CFPB has issued consent orders against Sovereign Lending Group, Inc. and Prime Choice Funding, Inc. Sovereign is a California corporation that is licensed as a mortgage broker or lender in about 44 states and the District of Columbia. Prime Choice is a California corporation that is licensed as a mortgage broker or lender in about 35 states and the District of Columbia. Both companies offer and provide mortgage loans guaranteed by the United States Department of Veterans Affairs (VA).

The Bureau found that the companies mailed consumers advertisements for VA-guaranteed mortgages that contained false, misleading, and inaccurate statements or lacked required disclosures, in violation of the Consumer Financial Protection Act’s prohibition against deceptive acts and practices, the Mortgage Acts and Practices – Advertising Rule, and Regulation Z.

The consent order against Sovereign requires Sovereign to pay a civil penalty of $460,000. The consent order against Prime Choice requires Prime Choice to pay a civil penalty of $645,000. The consent orders also impose injunctive relief to prevent future violations, including requiring the companies to bolster their compliance functions by designating an advertising compliance official who must review their mortgage advertisements for compliance with mortgage advertising laws prior to their use; prohibiting misrepresentations similar to those identified by the Bureau; and requiring the companies to comply with certain enhanced disclosure requirements to prevent them from making future misrepresentations.


June residential sales increase

HUD and the Census Bureau reports that sales of new single-family houses in June 2020 were at a seasonally adjusted annual rate of 776,000. This is 13.8 percent above the revised May rate of 682,000 and is 6.9 percent above the June 2019 estimate of 726,000. The median sales price of new houses sold in June 2020 was $329,200. The average sales price was $384,700. The seasonally adjusted estimate of new houses for sale at the end of June was 307,000. This represents a supply of 4.7 months at the current sales rate.


Training View All

Penalties View All

Search Top Stories