Skip to content

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


Discount rate decreased

The Federal Reserve Board approved actions yesterday by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, and Dallas decreasing the discount rate (the primary credit rate) at the Banks from 2-1/2 percent to 2-1/4 percent, effective immediately.


Bogus student loan debt relief operation stopped

The CFPB, the Minnesota Attorney General’s Office, the North Carolina Department of Justice, and the Los Angeles City Attorney have announced the filing of a complaint to halt a student-loan debt-relief operation engaged in allegedly unlawful conduct and consisting of several related companies— Consumer Advocacy Center Inc., which does business as Premier Student Loan Center; True Count Staffing Inc., also known as SL Account Management; and Prime Consulting LLC, which is known as Financial Preparation Services. Defendants also include Albert Kim, Kaine Wen, and Tuong Nguyen, who the complaint alleges substantially assisted the student-loan debt-relief companies. It also alleges that since at least 2015, the debt-relief companies operated as a common enterprise and deceived thousands of federal-student-loan borrowers and charged over $71 million in unlawful advance fees in connection with the marketing and sale of student-loan debt-relief services to consumers.

The Bureau also alleges that the defendants engaged in deceptive practices by misrepresenting: the purpose and application of fees charged by the companies, their ability to obtain loan forgiveness, and their ability to lower consumers’ monthly payments. The Bureau also alleges that the defendants failed to inform consumers that the companies automatically request that consumers’ loans be placed in forbearance so that consumers can better afford the companies’ significant fees and that the companies submit false information to student-loan servicers in loan-adjustment applications in an effort to qualify consumers for lower monthly payments.

The court granted a temporary restraining order and scheduled a hearing for November 4 on the Bureau's request for a preliminary injunction. The complaint seeks an injunction against defendants, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties. The complaint also names several defendants in order to obtain relief, and seeks disgorgement of those relief defendants’ ill-gotten gains.


NCUA webinar registration open

The NCUA has announced that registration for its “Fair Lending and Consumer Compliance Regulatory Update” on November 19 is now open. The webinar is scheduled to begin at 2 p.m. EST and run approximately 90 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. Subjects to be covered include:

  • The agency’s new payday alternative loan (PALs II) rule
  • Findings from reviews of Home Mortgage Disclosure Act loan and application registers;
  • Regulation B adverse action notices; and
  • Elder financial abuse.


Bureau revises threshold amounts for 2020

The CFPB has published final rules in this morning's Federal Register adjusting exemptions thresholds in Regulations Z and M for the year 2020.

  • [84 FR 58013] Comment 35(c)(2)(ii)-3.vii will be added to the Official Interpretations of § 1026.35 of Regulation Z to increase the threshold amount to $27,200 for the exemption from the special appraisal requirements for higher-priced mortgage loans.
  • [84 FR 58020] Comment 3(b)-3.xi will be added to the Official Interpretations of § 1026.3 of Regulation Z to increase the threshold amount to $58,300 for exempt consumer credit transactions (except for (1) those secured by real property or by personal property use or expected to be used as the principal dwelling of a consumer and (2) private education loans)
  • [84 FR 58017] Comment 2(e)-11.xii will be added to the Official Interpretations of § 1013.2 of Regulation M to increase the threshold amount to $58,300 for exempt consumer leases.

The BankersOnline Regulations pages for Regulations Z and M have been updated to include these changes.


New strategic plan for Fannie and Freddie

The Federal Housing Finance Agency has released a new Strategic Plan for the conservatorships of Fannie Mae and Freddie Mac and a new 2020 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. The Strategic Plan provides a framework for how FHFA will guide Fannie Mae and Freddie Mac to fulfill their statutory missions, focus on safety and soundness, and prepare for a responsible end to the conservatorships. The Scorecard aligns the Strategic Plan with the Enterprises’ tactical priorities and operations, serving as an essential tool to hold the Enterprises accountable for the effective implementation of the Strategic Plan.


HUD and Justice sign MOU on FCA

The Department of Housing and Urban Development has announced that a Memorandum of Understanding has been signed by HUD and the Justice Department that provides guidance on the use of the False Claims Act for violations by FHA lenders. The MOU makes clear that HUD expects that FHA requirements will be enforced primarily through HUD's administrative proceedings, but the MOU specifically addresses how HUD and DOJ, including the U.S. Attorneys' Offices, will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA.


FDIC releases September enforcement actions

The FDIC has released a list of enforcement orders issued in September 2019.

  • Four banks received orders for civil money penalties totaling $53,831 for various violations of the Flood Disaster Protection Act, the Flood Insurance Act, and Part 339 of the FDIC's regulations:
  • Willamette Valley Bank, Salem, Oregon, was assessed a $275,000 civil money penalty for violations of RESPA and of the Telephone Consumer Protection Act
  • The former president and CEO of Tennessee Commerce Bank was banned from banking and assessed a $250,000 penalty for his involvement in a scheme to conceal the bank's losses on $16 million in commercial loans made to two related companies
  • Removal and prohibition orders were issued to individuals formerly affiliated with Bank of Lake Mills, Lake Mills, WI; Bank of the Sierra, Porterville, CA; Branch Banking and Trust Company, Winston Salem, NC; Cardinal Bank, McLean, VA; and Citizens Union Bank of Shelbyville, Shelbyville, KY.


CFPB symposium on pending Reg B changes

The CFPB will hold a symposium on Section 1071 of the Dodd-Frank Act on November 6, at 9:30 a.m. The event will be webcast on the Bureau's website.

Section 1071 amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect, report, and make public certain information concerning credit applications made by women-owned, minority-owned, and small businesses. The symposium will provide a public forum for the Bureau and the public to hear various perspectives on the small business lending marketplace and the Bureau’s upcoming implementation of Section 1071.

Members of the public who plan to attend the symposium should RSVP at this link.


Judge fines Ed Dept $100K in student loan fiasco

The Hill reported overnight that a federal judge has found Department of Education Secretary Betsy DeVos in violation of a preliminary injunction and fined the department $100,000 for continuing to collect loan payments from Corinthian Colleges students. The Hill reports that, earlier this month, more than 16,000 students from the now-defunct Corinthian College asked the judge to hold DeVos in contempt for pursuing their debts despite a court order prohibiting their collection. Magistrate Judge Sallie Kim of the U.S. District Court in San Francisco had ordered DeVos to stop collecting loans from the former students in May 2018.


U.S. financial regulators join GFIN

The FDIC, OCC, SEC, and Community Futures Trading Commission (CFTC) have announced they are joining the Global Financial Innovation Network (GFIN). The agencies join 46 other financial authorities, central banks, and international organizations from around the globe that are members of the GFIN to foster greater cooperation among financial authorities on a variety of innovation topics, regulatory approaches, and lessons learned.


Training View All

Penalties View All

Search Top Stories