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03/19/2024

Two lenders fined $59M; falsely promised fast PPP application processing

The Federal Trade Commission yesterday reported it has taken action against two companies – Biz2Credit and Womply – that made false promises to small businesses seeking to take part in the Paycheck Protection Program (PPP), delaying and sometimes preventing them from obtaining funds they needed to keep their businesses afloat during the COVID-19 pandemic.

The companies have agreed to settle the FTC’s charges against them: Biz2Credit will pay $33 million and Womply will pay $26 million to the FTC for small businesses harmed by their deceptive conduct. These are the largest damages amounts ever secured by the agency under Section 19 of the FTC Act, and include money consumers lost because of the companies’ conduct, even if consumers made no payments directly to the companies.

Biz2Credit, Inc., and its subsidiary, Itria Ventures, have agreed to pay $33 million in damages to settle the Commission’s charges that they deceptively advertised that consumers’ emergency PPP loan applications would be processed in an average of 10-14 business days when, in reality, the average processing took well over a month. The FTC’s complaint that Biz2Credit’s application processing was riddled with delays, and the average processing time was double what the defendants claimed, with tens of thousands of consumers waiting more than two months for a final determination. Even though they were aware of these delays, the defendants continued to make their false timing claims to consumers until nearly the end of the program. The FTC’s complaint also says that Biz2Credit unfairly ignored many consumers’ repeated and urgent pleas to withdraw their loan applications. As a result, the defendants delayed and sometimes even prevented these consumers from obtaining PPP funds elsewhere.

Womply and its CEO, Toby Scammell, have agreed to pay $26 million to settle FTC charges they preyed on small businesses in desperate need of PPP funding. The FTC’s complaint alleges they widely advertised that small businesses – particularly one-person businesses like gig workers – could successfully get PPP funding when they applied through Womply. The complaint charges, however, that more than 60 percent of Womply applications never resulted in funding. Womply and Scammell allegedly also advertised that their automated processes and good customer service would help small businesses secure PPP loans fast. In fact, applicants regularly faced significant issues that slowed down or fully hindered their applications and were often unable to receive customer service assistance they were promised, according to the complaint.

03/18/2024

U.S. targets illicit shipments

On Friday, the Treasury Dapartment reported that OFAC had taken action against Marshall Islands-registered shipping company Vishnu Inc., whose vessel, the LADY SOFIA, is involved in illicit shipments to the People’s Republic of China in support of Iran’s Islamic Revolutionary Guard Corps-Qods Force and Houthi financial facilitator Sa’id al-Jamal, who is sanctioned under U.S. counterterrorism authorities.

For identification information on Vishnu Inc. and the LADY SOFIA, see Friday's BankersOnline OFAC Update.

03/18/2024

FinCEN ruling on CIP/CDD for charitable beneficiaries of IRA

On Friday, FinCEN published an administrative ruling regarding Customer Identification Program (CIP) and Customer Due Diligence (CDD) requirements for designated beneficiaries of individual retirement accounts.

In FIN-2024-R001, FinCEN issued a revised response to clarify obligations for broker-dealers that open new accounts for legal entity customers. The ruling was issued in response to a request from a foundation that had been named the beneficiary of an individual retirement account maintained by the broker-dealer. For the foundation to receive the funds, the broker-dealer required the foundation to open a new IRA and submit information required by the broker-dealer's CIP and CDD rules. The foundation asked whether it must comply with identification verification requirements when receiving the distribution of IRA funds inherited as part of a charitable estate.

In the ruling, FinCEN expressed no view on whether the broker-dealer had to open the IRA account to pass the funds to the foundation. It did, however, confirm that, in order to open an account, the broker-dealer would be required to comply with CIP and CDD rules imposed under FinCEN regulations.

03/15/2024

Swiss global banking group settles with OFAC

OFAC has announced a settlement with EFG International AG, a Switzerland-based global private banking group. EFG has agreed to pay $3,740,442 to settle its potential civil liability for processing 873 securities transactions in apparent violation of the Cuban Asset Control Regulations, the Kingpin Act, and Executive Order 14024. The settlement amount reflects OFAC’s determination that EFG’s apparent violations were voluntarily self-disclosed and were non-egregious. Further details are available in OFAC's enforcement release.

03/15/2024

OCC Office Hours in San Francisco announced

The OCC has announced its Office of Financial Technology (OFT) will hold Office Hours in San Francisco, May 21-22, 2024, to promote responsible innovation in the federal banking system.

Office Hours are one-on-one meetings with OCC’s OFT staff to discuss financial technology (fintech), new products or services, partnering with a bank or fintech company, or other matters related to responsible innovation in the federal banking system. OCC staff will provide feedback and respond to questions. Each meeting will be scheduled for 50 minutes.

Information on how to request a meeting is available on the OCC's Office Hours Event page. To be considered, submit a request by March 30, 2024. The OCC will provide specific meeting times to selected participants following a review of all requests.

03/15/2024

Fed and OCC fine JPMorgan Chase $348.2M for inadequate monitoring

The Federal Reserve Board yesterday announced it has issued an enforcement action against JPMorgan Chase & Co., and fined the firm approximately $98.2 million for an inadequate program for monitoring firm and client trading activities for market misconduct. The Board's action requires JPMorgan Chase to review and take corrective action to address the firm's inadequate monitoring practices, which occurred between 2014 and 2023.

The Board's action was taken in coordination with the Office of the Comptroller of the Currency. The penalties announced by the Board and the Office of the Comptroller of the Currency total approximately $348.2 million.

The OCC's assessment of a $250 million civil money penalty against JPMorgan Chase Bank, N.A. was also announced yesterday. The OCC reported it found that the bank operated with gaps in trading venue coverage and without adequate data controls required to maintain an effective trade surveillance program.

Generally, trading venues are systems or electronic platforms, operated by investment firms or market operators, that bring together multiple third party buying or selling interests in financial instruments to perform a transaction. The OCC expects banks to perform trade surveillance to monitor the market conduct of its traders and clients as part of its market conduct risk control framework. The OCC found that the bank failed to surveil billions of instances of trading activity on at least 30 global trading venues. These gaps and deficiencies in the bank’s trade surveillance program constitute unsafe or unsound banking practices.

03/15/2024

FDIC Board to meet March 21

The FDIC has announced that its Board of Directors will meet at 10:00 a.m. EDT on March 21, 2024, to consider a memorandum and resolution regarding a proposed statement of policy on bank merger transactions.

The meeting will be open to the public via webcast.

03/14/2024

U.S. targets Republika Srpska officials

Yesterday, the Treasury Department reported that OFAC had designated three individuals who have contributed to Specially Designated National (SDN) and Republika Srpska President Milorad Dodik’s efforts to undermine the peace and stability of Bosnia and Herzegovina (BiH) by organizing and executing the commemoration of “Republika Srpska Day” on January 9, 2024, an activity determined to be unconstitutional in BiH. These individuals facilitated Dodik’s efforts to undermine the Dayton Peace Agreement and the authority of the BiH Constitutional Court and the High Representative.

For the names and identification information of the designated individuals, see yesterday's BankersOnline OFAC Update.

03/13/2024

Hsu discusses operational resilience

The OCC has reported that Acting Comptroller Michael J. Hsu yesterday discussed the importance of operational resiliency in remarks at the Institute of International Bankers Annual Washington Conference.

In his remarks, Mr. Hsu discussed the growing risks of disruptions that may impede the provision of financial services or adversely impact systems. He also discussed considerations to strengthen operational resiliency requirements for large banks with critical operations, including third party service providers.

03/13/2024

U.S. targets Al-Ashtar Brigades operatives

The Treasury Department yesterday reported that OFAC has acted in coordination with the Kingdom of Bahrain against key Iran-based operatives and a financial facilitator for designated terrorist group Al-Ashtar Brigades. The Department of State designated Al-Ashtar Brigades as a Foreign Terrorist Organization and a Specially Designated Global Terrorist in 2018.

For the names and identification information of the designated individuals, see yesterday's BankersOnline OFAC Update.

03/12/2024

Appeal filed in Corporate Transparency Act case

FinCEN has reported that the Government has filed a Notice of Appeal in National Small Business United v. Yellen. The appeal was filed with the U.S. Court of Appeals for the Eleventh Circuit.

03/12/2024

U.S. targets transnational al-Shabaab money laundering network

The Treasury Department has reported that OFAC has imposed sanctions on 16 entities and individuals who compose an expansive business network spanning the Horn of Africa, the United Arab Emirates (UAE), and Cyprus that raises and launders funds for al-Shabaab, a terrorist group affiliated with al-Qa’ida. Individuals within this network include influential businesspeople in the region that lend financial backing to al-Shabaab, a terrorist group responsible for some of the worst terrorist attacks in East Africa’s modern history. These attacks have claimed the lives of thousands of innocent civilians. These individuals and entities were designated pursuant to Executive Order 13224, as amended, which targets terrorist groups and their enablers.

For the names and identification information of the designated parties, see yesterday's BankersOnline OFAC Update.

03/11/2024

Fed finalizes rule for financial market utilities

The Federal Reserve Board has announced it has approved a final rule that updates risk management requirements for certain systemically important financial market utilities (FMUs) supervised by the Board. FMUs provide essential infrastructure to clear and settle payments and other financial transactions to allow financial markets and the broader economy to function effectively.

The final updates provide additional clarity and specificity to existing requirements in four key areas of operational risk management: incident management and notification; business continuity management and planning; third-party risk management; and review and testing of operational risk management measures. For example, the updates explicitly require FMUs to establish an incident management framework and emphasize the need for FMUs to continue to advance their cyber resilience capabilities.

The final updates are substantively similar to the proposal and largely consistent with existing measures that FMUs take to comply with the current requirements.

FMUs subject to the rule must be in compliance with certain updates by 90 days and all updates by 180 days after publication in the Federal Register.

03/11/2024

CFPB shifts 'junk fees' focus to residential mortgage loans

In a March 8, 2024, blog article, the CFPB has signaled a shift of its "junk fees" campaign to residential real estate loans and their closing costs.

According to the article, in 2022, the median amount paid by borrowers for total loan costs (origination fees, appraisal and credit report fees, title insurance, discount points, and other fees) was nearly $6,000. Many of these costs are fixed and do not fluctuate with interest rates or change based on the size of the loan. As a result, they have an outsized impact on borrowers with smaller mortgages, such as lower income borrowers, first-time homebuyers, and borrowers living in Black and Hispanic communities. A 2021 Fannie Mae study found that nearly 15 percent of lower income homebuyers had closing costs that exceeded the amount of their down payment.

The article reports the Bureau is paying particular attention to the recent rise in discount points. A higher percentage of borrowers reported paying discount points in 2022 than any other years since this data point was first reported in 2018. In 2022 about 50.2 percent of home purchase borrowers paid some discount points, up from 32.1 in 2021. Borrowers are also paying more in discount points. The median discount points paid for home purchase loans in 2022 was $2,370 in 2022, up from $1,225 in 2021. Lenders sell discount points to borrowers to reduce interest rates.

The article also said it appears that some closing costs are high and increasing because there is little competition. Borrowers are required to pay for many of the costs associated with closing a home loan but cannot pick the provider and do not benefit from the service. In many cases, the lender simply picks from a very small universe of providers, and the costs are then passed on to the borrower, and cites lender;s title insurance as one example of a fee borrowers face at closing where the borrower has no control over cost. Fees for credit reports are another example cited in the article.

03/11/2024

Regulators to publish temporary exceptions to FIRREA appraisal requirement

The Federal Reserve Board, OCC, FDIC, and NCUA have jointly scheduled Federal Register publication tomorrow (March 12, 2024) of temporary exceptions to FIRREA appraisal requirements for real estate-related financial transactions, provided certain criteria are met, in an area in the State of Hawaii following the major disaster declared by President Biden as a result of wildfires. The expiration date for the exceptions is August 10, 2026, which is three years after the date the President declared the major disaster. The agencies' order will be effective on publication.

The agencies also have determined that the exceptions are consistent with safety and soundness, provided that the depository institution determines the following: (1) the transaction involves real property located in the area designated [Maui County] as adversely affected by the major disaster; (2) there is a binding commitment to fund the transaction that was entered into on or after August 10, 2023, but no later than August 10, 2026; and (3) the value of the real property supports the institution’s decision to enter into the transaction. In addition, the transaction must continue to be subject to review by management and by the agencies in the course of examinations of the institution.

03/08/2024

FTC issues extends telemarketing fraud protections to businesses

The Federal Trade Commission has announced a final rule extending telemarketing fraud protections to businesses and updating the rule’s recordkeeping requirements in light of developments in technology and the marketplace. The Commission also announced a proposed rule that would provide the agency with significant new tools to combat tech support scams.

The final rule will be effective 30 days after publication in the Federal Register with compliance with one provision delayed until 180 days after publication.

There will be a 60-day comment period on the proposed rule following its Federal Register publication.

03/08/2024

Trade groups sue CFPB to stop credit card late fees rule

The U.S. Chamber of Commerce announced it has filed a lawsuit in the U.S. District Court for the Northern District of Texas, Fort Worth Division seeking a preliminary injunction to stop the Consumer Financial Protection Bureau (CFPB) from implementing its rule to limit credit card late fees, arguing that the CFPB not only exceeded its statutory authority but did so by relying on the use of secret data collected for an unrelated purpose.

The Chamber and co-plaintiffs Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business, allege that the CFPB—

  • Violated the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) by preventing issuers from collecting reasonable and proportional late fees when cardholders do not pay their bills on time;
  • Violated the Administrative Procedures Act (APA) by promulgating a final rule that is arbitrary and capricious, relying on secret data collected from only the largest banks for a different purpose and by a different agency; and
  • Issued the rulemaking with funds drawn in violation of the U.S. Constitution's Appropriations Clause.

The plaintiffs also filed a motion for a preliminary injunction that would bar the CFPB from enforcing, applying, or implementing the final rule, and a brief in support of that motion.

03/07/2024

SEC adopts rules to enhance and standardize climate-related disclosures

The Securities and Exchange Commission yesterday announced it has adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings. The final rules reflect the Commission’s efforts to respond to investors’ demand for more consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant’s operations and how it manages those risks while balancing concerns about mitigating the associated costs of the rules.

The adopting release is published on SEC.gov and will be published in the Federal Register. The final rules will become effective 60 days following publication of the adopting release in the Federal Register, and compliance dates for the rules will be phased in for all registrants, with the compliance date dependent on the registrant’s filer status.

03/07/2024

Fed posts Beige Book for February 2024

The Federal Reserve Board has posted the February 2024 Beige Book, prepared at the Federal Reserve Bank of San Francisco based on information collected by the twelve Reserve Banks on or before February 26, 2024. This document summarizes comments received from contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials.

03/07/2024

Foreign-based person must comply with U.S. sanctions and export controls

Yesterday, U.S. Department of Justice, the U.S. Department of Commerce, and the U.S. Department of the Treasury’s Office of Foreign Assets Control, issued a Tri-Seal Compliance Note: “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws.”

03/07/2024

U.S. targets companies and vessels aiding Qods Force and Houthi shipments

The Treasury Department has reported that OFAC has taken additional action to target shipments of Iranian commodities undertaken by the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. Yesterday’s action targets two Hong Kong- and Marshall Islands-based ship owners and two vessels for their role in shipping commodities on behalf of al-Jamal, and follows a February 27 action targeting a related vessel, the ARTURA.

For identification information on the companies and vessels, see BankersOnline's March 6, 2024, OFAC Update.

03/06/2024

Reserve Banks released 15 CRA evaluations in February

Our monthly check of the Federal Reserve Board's archive of CRA evaluation ratings reveals that the Reserve Banks made public 15 evaluations of member banks in February 2024. Thirteen of those evaluations were rated "Satisfactory." We congratulate Charles Schwab Bank, SSB, and Charles Schwab Premier Bank, SSB, both of Westlake, Texas, for receiving ratings of "Outstanding."

03/06/2024

Bowman on tailoring and fidelity to the rule of law

Federal Reserve Board Governor Michelle W. Bowman spoke yesterday at the Harvard Law School Faculty Club on "Tailoring, Fidelity to the Rule of Law, and Unintended Consequences."

Governor Bowman said, in her opening remarks, "I would like to frame the discussion by offering my views on a key element underpinning the U.S. bank regulatory framework: the role of tailoring. While the principle itself is simple—setting regulatory priorities and allocating supervisory resources in a risk-based way—the consequences of tailoring (or not) can reverberate throughout the banking system, the broader U.S. financial system, and the economy. I see a clear nexus between tailoring and fidelity to the law, including a targeted focus within our statutorily mandated prudential responsibilities."

Bowman added, "Both the pending capital reform proposals and the final climate guidance illustrate how regulatory actions can deviate from the principle of tailoring without any express recognition of this effect." She noted that "the federal banking agencies have proposed several reforms to the capital framework, among them the Basel III "endgame" and new long-term debt requirements that would apply to all banks with over $100 billion in assets. I have expressed concern with both of these proposals on the merits, in terms of striking the right balance between safety and soundness and efficiency and fairness, and out of concern for potential unintended consequences. Another concern is whether these proposals show fidelity to the law, which requires regulatory tailoring above the $100 billion asset threshold."

03/06/2024

Another FDIC update to RMS Manual

The FDIC has announced another update of its Risk Management Manual of Examination Policies (RMS Manual). This update affects Section 15.1 (Formal Administrative Actions).

03/06/2024

U.S. targets Intellexa Consortium and others

The Department of the Treasury has reported that OFAC has designated two individuals and five entities associated with the Intellexa Consortium for their role in developing, operating, and distributing commercial spyware technology used to target Americans, including U.S. government officials, journalists, and policy experts.

For the names and identification information of the designated parties, see this BankersOnline OFAC Update.

03/05/2024

U.S. sanctions Zimbabwe president and key actors

Yesterday, the Department of the Treasury announced that OFAC has designated 11 individuals, including Zimbabwe’s President Emmerson Mnangagwa, and three entities for their involvement in corruption or serious human rights abuse pursuant to E.O. 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

Concurrently, President Biden signed an Executive Order terminating the national emergency with respect to Zimbabwe and revoking the Executive Orders that have authorized Zimbabwe-specific sanctions. As a result, the economic sanctions administered by OFAC pursuant to the Zimbabwe sanctions program are no longer in effect.

The president’s Executive Order of March 4, 2024, “Termination of Emergency With Respect to the Situation in Zimbabwe,” terminated the national emergency declared in E.O. 13288 and built upon in E.O. 13391 and E.O. 13469. As a result:

  • All persons blocked solely pursuant to Executive Order 13288, 13391, or 13469 (the authorities of the Zimbabwe Sanctions Program) are being removed from OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List;
  • All property and interests in property blocked solely pursuant to the Zimbabwe Sanctions Program is now unblocked; and
  • OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.

For details on the new, removed, and updated SDN listings and a link to the Executive Order, see BankersOnline's March 4, 2024, OFAC Update.

03/05/2024

FDIC updates RMS Manual

The FDIC has has updated its Risk Management Manual of Examination Policies (RMS Manual). This month's update affects Section 3.3 (Securities).

03/05/2024

FDIC issues list of recently released CRA evaluation ratings

The FDIC has released a list of 56 recently released CRA evaluation ratings of state non-member FDIC-insured financial institutions. Three banks (located in Camden, SC; Doylestown, PA; and Sewell, NJ) were assigned "Needs to Improve" ratings. Forty-six received "Satisfactory" ratings. We congratulation seven institutions whose evaluations were rated "Outstanding":

03/05/2024

CFPB finalizes rule reducing credit card late fees to $8 for larger issuers

This morning, the CFPB announced it has finalized a rule to cut excessive credit card late fees. The rule will curb fees that cost American families more than $14 billion a year. The CFPB estimates that American families will save more than $10 billion in late fees annually once the final rule goes into effect by reducing the typical fee from $32 to $8 for card issuers that together with their affiliates have one million or more open credit card accounts.

The final rule reduces the current maximum late fees from $30 for the first late payment and $41 for subsequent late payments to $8 and ends automatic inflation adjustments for that amount for issuers that have one million or more open accounts. Specifically, the final rule:

  • Lowers the immunity provision dollar amount for late fees to $8
  • Ends the automatic annual inflation adjustment. The CFPB will instead monitor market conditions and adjust the $8 late fee immunity threshold as necessary.
  • Requires credit card issuers to show their math. Larger card issuers will be able to charge fees above the threshold so long as they can prove the higher fee is necessary to cover their actual collection costs.

The rule does not change the credit card issuer’s ability to raise interest rates, reduce credit lines, and take other actions to deter consumers from paying late.

The final rule does not adopt these revisions for “Smaller Card Issuers” (i.e., card issuers that together with their affiliates had fewer than one million open credit card accounts for the entire preceding calendar year). For Smaller Card Issuers, the final rule revises the safe harbor threshold amounts for late fees to $32 for the initial violation and $43 for each subsequent violation that occurs in one of the next six billing cycles.

The effective date of the final rule will be 60 days after publication of the rule in the Federal Register.

  • Statement of CFPB Director Rohit Chopra
  • Executive summary
  • Key changes chart
  • Unofficial redline of the final rule
  • UPDATE:Updated 3/5/2024 to clarify that the reduced fee cap applies only to larger card issuers
  • PUBLICATION AND EFFECTIVE DATE UPDATE: Published at 89 FR 19128 on 3/15/2024, with an effective date of 5/14/2024. However, the U.S. Chamber of Commerce has filed a suit in the Northern District of Texas seeing a preliminary injunction to stop the CFPB from implementing the rule.

03/05/2024

Court blocks FinCEN's CTA (BOI reporting) rule for specific plaintiffs

FinCEN reported yesterday that on Friday, in the case of National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), a federal district court in the Northern District of Alabama, Northeastern Division, entered a final declaratory judgment, concluding that the Corporate Transparency Act exceeds the Constitution’s limits on Congress’s power and enjoining the Department of the Treasury and FinCEN from enforcing the Corporate Transparency Act against the plaintiffs.

FinCEN will comply with the court’s order for as long as it remains in effect. As a result, the government is not currently enforcing the Corporate Transparency Act against the plaintiffs in that action: Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024). Those individuals and entities are not required to report beneficial ownership information to FinCEN at this time.

Update: On March 11, 2024, the Defendants (Yellen, et al) filed a Notice of Appeal of the Court's Final Judgment to the U.S. Court of Appeals for the Eleventh Circuit.

03/05/2024

SBA updates Lender Match tool for small businesses

Yesterday, SBA Administrator Isabel Casillas Guzman announced the next generation of the SBA’s Lender Match tool for businesses to connect to capital through SBA’s network of approved banks and private lenders. The enhanced Lender Match will provide Americans seeking funding to start and grow their businesses with a simple, online tool that will more effectively match them with the SBA’s competitive lending products and additional offerings from a trusted network of banks and private lenders.

On the enhanced Lender Match platform, small business owners benefit from an improved, mobile-first user interface that ensures better access and usability. Borrowers will now be able to easily view all of their matched lenders in one place, allowing the borrower to find and compare lenders to help them decide where to apply for a loan. The enhanced tool will also verify borrowers and screen for fraud to streamline the process for both lenders and borrowers. Importantly, with Lender Match, small businesses that are not matched to lenders will be connected to the SBA’s local network of free advisors to help them get capital-ready.

03/04/2024

HUD charges Georgia landlords with housing discrimination

The U.S. Department of Housing and Urban Development has announced it is charging PadSplit, Inc., a property management company, Kevin Lee Forrestal and Lydia Forrestal, the property owners, in Decatur, Georgia, with discrimination against a tenant because of her disability. HUD’s Charge of Discrimination alleges that respondents failed to grant a reasonable accommodation when a hearing-impaired complainant requested to have a service animal to assist with her disability.

HUD’s Charge of Discrimination alleges that the property’s management company and its employees, and the condominium unit’s owners, prohibited a hearing-impaired resident from using a service animal in their unit, and refused to install a visual doorbell and smoke detector, preventing her full use of her unit. Ultimately, their actions resulted in the resident’s decision to move out of the unit.

03/04/2024

OCC releases CRA evaluations for 31 banks

The OCC has released a list of Community Reinvestment Act (CRA) performance evaluations that became public in February. Of the 31 evaluations made public this month, one (in Kentland, Indiana) is rated needs to improve, 24 are rated satisfactory, and the following six are rated outstanding:

03/01/2024

Agencies to host 2024 interagency Community Reinvestment Conference

The FDIC, Federal Reserve Board, and OCC have jointly announced they and the Federal Reserve Banks of San Francisco and Chicago will host the 2024 National Interagency Community Reinvestment Conference in Portland, Oregon, March 4 to 7.

The biennial conference offers participants the opportunity to learn about the Community Reinvestment Act (CRA) and to discuss best practices, innovations, and emerging challenges in community development with experts from around the country. The 2024 program will focus on the agencies’ new CRA rule, and will include regulator-led sessions on the rule and panels on community development policy and activities. There will be pre-conference tours of local community development organizations and projects.

The conference will also include a panel discussion with Federal Reserve Vice Chair for Supervision Michael J. Barr, FDIC Chairman Martin J. Gruenberg, and Acting Comptroller of the Currency Michael J. Hsu. The panel discussion will be livestreamed.

To register for the conference and view the full agenda, visit the National Interagency Community Reinvestment Conference website.

03/01/2024

FATF IDs jurisdictions with AML/CFT/CPF deficiencies

FinCEN has reported that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF), issued an additional public statement at the conclusion of its plenary meeting this month reiterating how the Russian Federation’s war of aggression against Ukraine continues to run counter to FATF’s principles, and, thus, the suspension of the membership of the Russian Federation continues to stand. The FATF highlighted the potential risks to the international financial system, including growing financial connectivity of Russia with the Democratic People’s Republic of Korea (DPRK) and Iran, and risks of proliferation financing, malicious cyber activities, and ransomware attacks. In order to protect the international financial system, the FATF continues to urge all jurisdictions to remain vigilant to these risks.

The FATF also updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

On February 23, 2024, the FATF added Kenya and Namibia to its list of Jurisdictions Under Increased Monitoring and removed Barbados, Gibraltar, Uganda, and the United Arab Emirates from that list.

The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same, with Iran, DPRK, and Burma subject to calls for action. Iran and DPRK are still subject to the FATF’s countermeasures, while Burma is still subject to the application of enhanced due diligence, but not countermeasures.

03/01/2024

Updated plan for implementation of Enterprise credit score requirements

The Federal Housing Finance Agency has announced updates to the implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie Mac (the Enterprises).

The FHFA is aligning the implementation date of the bi-merge credit reporting requirement with the transition from the Classic FICO credit score model. This aligned transition is expected to occur in the fourth quarter of 2025.

To better support market participants with this transition, the Enterprises will accelerate the publication of VantageScore 4.0 historical data, originally expected to be published in the first quarter of 2025, to early in the third quarter of 2024. FHFA and the Enterprises continue to work towards providing similar data to support the transition to the FICO 10T model, contingent upon achieving the necessary conditions for acquisition and publication of this data. FHFA will provide further details on implementation timing for FICO 10T once this process is complete.

03/01/2024

CFPB guidance on comparison-shopping results for financial products

The CFPB has announced it has issued Consumer Financial Protection Circular 2024-01 regarding preferencing and steering practices by digital intermediaries for consumer financial products or services. The circular was issued to law enforcement agencies and regulators to explain "how companies operating comparison-shopping tools can break the law when they steer consumers to certain products or lenders because of kickbacks."

03/01/2024

OCC and FDIC release CRA evaluation schedules

The FDIC and OCC have issued their Community Reinvestment Act examination schedules for the second and third quarters of 2024.

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