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The American Banker reports that the ABA, Independent Community Bankers of America, U.S. Chamber of Commerce, Texas Bankers Association and other trade associations have filed suit in the Northern District of Texas against the OCC, Federal Reserve, and FDIC, in an attempt to stop the recently finalized Community Reinvestment Act regulations reforms.

The suit argues that the agencies arbitrarily exceeded their statutory authority when they finalized their amendments to the CRA rules in October. The suit also calls on the court to stay the rules pending the outcome of the suit. The complaint argues that the October 2023 update works "a wholesale and unlawful change to a statutory and regulatory regime that, for nearly five decades, has successfully encouraged lending in low- and moderate-income neighborhoods throughout the United States."

Yesterday, the FDIC issued FIL-4-2024 to announce regulatory relief and facilitate recovery in areas of West Virginia affected by severe storms, flooding, landslides, and mudslides from August 28 to August 30, 2023; and FIL-5-2024 to announce regulatory relief and facilitate recovery in areas of Maine affected by severe storms and flooding from December 17 to December 21, 2023.

The FDIC has released its February issue of FDIC Consumer News, featuring guidance and strategies concerning student loans.

The FDIC has released a list of 56 banks examined for CRA compliance whose evaluation ratings were assigned in November 2023. Of the banks listed, Norway Savings Bank, Norway, Maine, received the only Outstanding rating. The other 55 banks' evaluations were rated Satisfactory.

The OCC has released a list of Community Reinvestment Act performance evaluations that became public in January, 2024.

Of the 18 evaluations made public this month, three are rated needs to improve, nine are rated satisfactory, and six are rated outstanding. We congratulate these institutions for their outstanding ratings:

• Bank First, National Association, Manitowoc, Wisconsin
• BOKF, National Association, Tulsa, Oklahoma
• Douglas National Bank, Douglas, Georgia
• First National Bank and Trust, Phillipsburg, Kansas
• Hancock County Savings Bank, F.S.B., Chester, West Virginia
• Inwood National Bank, Dallas, Texas

The Federal Reserve Board, OCC, and FDIC published [89 FR 6574] the previously announced joint final rule updating their Community Reinvestment Act regulations.

The Office of the Comptroller of the Currency yesterday announced it has assessed a $65 million civil money penalty against City National Bank, of Los Angeles, California, related to systemic deficiencies in the Bank’s risk management and internal controls.

The OCC found that the bank engaged in unsafe or unsound practices, including its failure to establish effective risk management and internal controls. This failure also resulted in noncompliance with 12 CFR Part 30, Appendix D, “OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.” The bank also violated the Bank Secrecy Act (BSA) and 12 CFR Part 9 – Fiduciary Activities of National Banks.

The OCC also issued a consent order requiring the bank to take broad and comprehensive corrective actions to improve its strategic plan, operational risk management, including internal controls; compliance risk management, including BSA/anti-money laundering and fair lending; strategic risk management; and investment management practices.

The NCUA has reported it has issued a consent prohibition notice against Kelly Givens, a former employee of FedStar Federal Credit Union, Salem, Virginia, after determining that she made unauthorized personal purchases using the Credit Union’s corporate credit card and caused the Credit Union to pay the card balances.

A prohibition order bars its recipient from participating in any way in the business of any insured depository institution or federal depository institution regulatory agency or the Federal Housing Finance Agency or any federal home loan bank without prior written consent of both the NCUA Board and the institution's appropriate regulatory agency.

The Federal Reserve has announced the availability of the latest issue of Consumer Compliance Outlook. The fourth issue of 2023 includes the following articles and features:

• Top Federal Reserve Compliance Violations in 2022 Under the Fair Credit Reporting Act and the Equal Credit Opportunity Act
• Top Federal Reserve System Violations in 2022: Regulation E Error Resolution Requirements and Regulation X Escrow Account Requirements
• Interagency Overview of the Community Reinvestment Act Final Rule
• Regulatory Calendar
• Calendar of Events

The Department of Defense's Military Lending Act (MLA) website has added a notice that its next system release (version 5.18) is scheduled for Thursday, February 15, 2024. It will include security and performance enhancements. The MLA website will be unavailable from 6:00 PM until 9:00 PM PST (9 PM to midnight, EST) on February 15.