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

07/02/2020

New NMLS Ombudsman appointed

The Conference of State Bank Supervisors announced yesterday that ​Jim Payne, director of examinations and assistant deputy commissioner for the Consumer and Mortgage Lending Division of the Kansas Office of the State Bank Commissioner, will serve as the new NMLS ombudsman starting July 1.

The NMLS ombudsman provides state regulators and industry a neutral environment for discussing NMLS issues and policies governing the system. More than 226,000 state-licensed entities across the mortgage, debt, consumer finance and money services businesses industries rely on NMLS to manage their licensing requirements. Over 424,000 federally registered institutions and mortgage loan originators also depend on the system.

07/02/2020

More from CFPB's rulemaking agenda

The CFPB's Spring 2020 Rulemaking Agenda (see yesterday's Top Story) also indicates that the Bureau is participating in an interagency rulemaking to develop regulations to implement Dodd-Frank Act amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) concerning quality control standards for automated valuations models (AVMs).

The Bureau is also conducting an assessment of its TRID Rule (required not later than 5 years after the rule's effective date), with an assessment report due by October 2020. The CFPB also expects to conduct a review under the Regulatory Flexibility Act of Regulation Z rules implementing the Credit CARD Act of 2009 to consider the effect of the rules on small entities.

07/01/2020

CFPB publishes Spring 2020 rulemaking agenda

The Bureau has published its Spring 2020 Rulemaking Agenda, which lists the regulatory matters that it expects to focus on between May 1, 2020 and April 30, 2021. In addition to actions already taken, the Agenda lists several other regulatory activities planned for the remainder of 2020 through the spring of 2021, including—

  • A proposed rule to implement section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA), which requires the Bureau to conduct a rulemaking to exempt certain loans from the escrow requirements applicable to higher-priced mortgage loans if they are made by certain creditors with assets of $10 billion or less and that meet other criteria.
  • In the fall of 2020, significant steps toward implementing section 1071 of the Dodd-Frank Act, requiring the collection and reporting of certain information on credit applications made by women-owned, minority-owned, and small businesses.
  • Also in the fall of 2020, two new proposed rules under HMDA relating to data points reported and public disclosure of HMDA data in light of consumer privacy considerations.
  • October 2020 final action on the May 2019 proposed rules under Regulation F to govern the activities of debt collectors under the FDCPA, followed at a later date with final action on the supplemental proposal addressing time-barred debt disclosures.
  • Consideration later in 2020 of a proposed rule with a "seasoning" definition of "qualified mortgage," to provide an alternate pathway to QM safe-harbor status for certain mortgage loans when the borrower has consistently made timely mortgage payments for a period.

07/01/2020

NMLS makes Temporary Authority resource available

In response to a request made of the NMLS Ombudsman at the organization's 2020 NMLS Annual Conference and Training, the NMLS has created a Temporary Authority state regulatory and implementation resource, available on the NMLS Temporary Authority to Operate webpage.

07/01/2020

FATF 31st Plenary Meeting

The Treasury Department has reported that the Financial Action Task Force (FATF) concluded its 31st plenary meeting by calling on its members to tackle new threats and vulnerabilities posed by criminals during the COVID-19 crisis. The FATF also completed a 12-month review of progress made by jurisdictions on implementing the new FATF standards on virtual assets adopted during the U.S. presidency of the FATF. The international task force further agreed upon draft text, on which it will seek public consultation, revising its standards to incorporate measures to counter proliferation financing, and adopted a groundbreaking report on money laundering and illegal wildlife trafficking.

07/01/2020

HUD awards $40M to fight housing discrimination

The U.S. Department of Housing and Urban Development (HUD) has awarded $40.8 million to support dozens of fair housing organizations working to help end housing discrimination. These funds are provided through the Department’s Fair Housing Initiatives Program (FHIP) both to help people who believe they have been victims of housing discrimination and to educate housing providers about fair housing laws.

HUD’s FHIP grants support a wide range of fair housing enforcement, education, and outreach activities. The grants allow organizations to provide fair housing enforcement through testing in the rental and sales markets, to file fair housing complaints with HUD, and to conduct investigations. Additionally, the education and outreach activities the organizations conduct also help to educate the public, housing providers, and local governments about their rights and responsibilities under the Fair Housing Act.

07/01/2020

FDIC releases list of May enforcement orders

The FDIC has released a list of enforcement decisions and orders issued in May 2020.

  • The former president, CEO and chairman of a Virginia bank was assessed a $15,000 civil money penalty for reckless unsafe and unsound practices and breaches of fiduciary duty.
  • A former teller at a Washington bank was issued an order of prohibition after a finding that she had embezzled over $49,000 and falsified bank records.
  • A former teller at a South Carolina bank received an order of prohibition after a finding that she had caused unauthorized ATM access cards to be issued on bank customer accounts without those customers' knowledge, and, alone or with others, used the cards to complete unauthorized withdrawals of more than $60,000 from those accounts.

07/01/2020

Fed assesses flood penalty on Virginia bank

The Federal Reserve Board has issued an order assessing an $8,500 civil money penalty on Benchmark Community Bank, Kenbridge, Virginia, for unspecified violations of section 208.25 of Regulation H, which implements the National Flood Insurance Act.

06/30/2020

CFPB announces first Tech Sprints

The CFPB yesterday announced its first-ever Tech Sprints to reduce regulatory burden and improve consumer understanding of financial services. The Bureau’s Tech Sprints program will bring together regulators, technologists, software providers, consumer groups, and financial institutions to develop technological solutions to shared compliance challenges. The first Tech Sprint will kick off in October with another in March 2021.

The focus of the October session will be improving upon existing consumer disclosures, the use of digital technology and alternative delivery mechanisms such as online and mobile, for notification of adverse credit actions.

The March 2021 session will focus on the HMDA data submission process.

06/30/2020

New UDAP/UDAAP booklet from OCC

OCC Bulletin 2020-65, issued yesterday, announced a new "Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices" booklet for the Comptroller's Handbook. This booklet is part of the Consumer Compliance series of the Handbook.

The booklet contains information for examiners regarding supervision of a bank's practices related to section 5 of the Federal Trade Commission (FTC) Act, which prohibits banks from engaging in unfair or deceptive acts or practices (UDAP), and sections 1031 and 1036 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which prohibit unfair, deceptive, or abusive acts or practices (UDAAP).

Pages

Training View All

Penalties View All

Search Top Stories