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Top Story Lending Related

11/08/2019

Consumer credit increases

The Federal Reserve has released September 2019 G.19 Consumer Credit data. Consumer credit increased at a seasonally adjusted annual rate of 5 percent during the third quarter. Revolving credit increased at an annual rate of 2-1/4 percent, while nonrevolving credit increased at an annual rate of 6 percent. In September, consumer credit increased at an annual rate of 2-3/4 percent.

11/08/2019

NMLS system maintenance scheduled

The NMLS has posted a notice that, due to scheduled system maintenance, NMLS will be unavailable to process test enrollments, schedule test appointments or post test results from 9 p.m. Friday, November 8 through noon Sunday, November 10. During this time, users will not be able to create test enrollments, schedule test appointments or post test results. This is only relevant to individuals who are required to complete testing for licensing as mortgage loan originators. Mortgage loan originators who must be registered (but not licensed) are not affected.

11/07/2019

HomeStreet Bank pays $1.35 million for RESPA violations

The FDIC has announced a settlement with HomeStreet Bank, Seattle, Washington, for violations of the Real Estate Settlement Procedures Act (RESPA). HomeStreet stipulated to the issuance of a civil money penalty order to pay $1,350,000.

The FDIC determined that HomeStreet Bank entered into co-marketing arrangements in which the bank and real estate brokers agreed to market their services together using online platforms. The FDIC also determined that the bank entered into desk rental agreements under which the bank rented space in the offices of real estate brokers and home builders. These arrangements and agreements resulted in the payment of fees by the bank to real estate brokers and home builders for their referrals of mortgage loan business, in violation of RESPA.

While co-marketing arrangements and desk rental agreements are permissible where the fees paid bear a reasonable relationship to the fair market value of marketing or rental costs, such arrangements and agreements violate RESPA when the amounts paid exceed fair market value and the excess is for referrals of mortgage business.

11/07/2019

Federal Reserve adjusts rates in Regs A and D

The Federal Reserve Board has published in this morning's Federal Register amendments to Regulation A and Regulation D to reduce, respectively, the rate for primary credit at each Federal Reserve Bank, and the rate paid on required reserves and excess reserves. The changes to both regulations are effective today, and affect rates charged or paid beginning October 31, 2019.

11/06/2019

FDIC CRA evaluations

The FDIC has released a list of Community Reinvestment Act (CRA) performance Evaluations that became public in November. Of the 82 institutions listed, 76 were rated satisfactory. Congratulations to these six institutions, which were rated outstanding (links are to their evaluation reports):

11/05/2019

FEMA to suspend Montana communities

FEMA has published a notice in today's Federal Register identifying Montana communities to be suspended on November 15 from the National Flood Insurance Program for noncompliance with the floodplain management requirements of the program. The communities scheduled for suspension are the City of Roundup and unincorporated areas of Rosebud County.

11/05/2019

October SLOOS

The October 2019 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally corresponds to the third quarter of 2019. Regarding loans to businesses, respondents indicated that, on balance, they left their standards on commercial and industrial (C&I) loans basically unchanged, while demand for C&I loans weakened. Banks also reportedly tightened standards on commercial real estate (CRE) loans, while demand for most categories of CRE loans changed little on balance. For loans to households, banks reportedly left their standards basically unchanged on most categories of residential real estate (RRE) loans, while demand strengthened for most categories of such loans. Meanwhile, banks reported tightening their standards on credit card loans, while demand for most consumer loan categories strengthened.

11/05/2019

Small business access to capital discussed in Federal Reserve series

The November 4, 2019, issue of the Federal Reserve Board's Consumer & Community Context covers the topic of small businesses' access to capital, and includes articles on experiences of small business owners when searching for financing online, disparities in small business credit approval by race and ethnicity, and small businesses' access to financial services in low- and moderate-income communities.

11/05/2019

Calabria calls for reform of mortgage finance system

In prepared remarks issued at yesterday’s Structured Finance Association Residential Mortgage Finance Symposium in New York City, FHFA Director Dr. Mark A. Calabria called for the reform of the mortgage finance system. He stated, “Today’s mortgage finance system poses significant risk not only to taxpayers, but also to borrowers, renters, homeowners, and our entire financial system. Yet, since 2008, mortgage finance reform has received much discussion but very little action.” He discussed the new Strategic Plan and Scorecard released in September by the Treasury and HUD which has the following objectives:

  • Focus on their mission of fostering competitive, liquid, efficient, and resilient national housing finance markets.
  • Operate in a safe and sound manner appropriate for entities in conservatorship.
  • Prepare for their eventual exits from the conservatorships.

Calabria noted the new Strategic Plan and Scorecard are also focused on preparing for the transition from LIBOR to alternative reference rates.

11/05/2019

FHFA asks for input on Fannie and Freddie pooling

The Federal Housing Finance Agency (FHFA) has issued a Request for Input about Fannie Mae’s and Freddie Mac’s (the Enterprises’) pooling practices for the formation of To-Be-Announced-eligible Uniform Mortgage-Backed Securities (UMBS). FHFA is also seeking public input about other policies and practices that might affect UMBS fungibility, including the Enterprises’ oversight of UMBS prepayment speeds and alignment.

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