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E.g., Nov 13 2024
E.g., Nov 13 2024

11/13/2024

Fed Board enforcement actions against former affiliated parties of Nano Bank

The Federal Reserve Board has it has prohibited Anthony R. Gressak III from future participation in the banking industry and fined him $75,000.

Gressak is a former director and former interim chief executive officer of Nano Financial Holdings, Inc. and Nano Banc. In his former role, Gressak violated a prior written agreement between the firm and the Federal Reserve. Gressak also fraudulently obtained loans and grants administered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and violated other laws and banking regulations.

The Board also announced that it had prohibited James T. Chung, also a former director of Nano Financial Holdings, Inc. and Nano Banc, from future participation in the banking industry for fraudulently obtaining loans and grants administered under the CARES Act.

11/13/2024

OFAC designates Sudanese commander

The Treasury Department yesterday announced that OFAC has sanctioned Abdel Rahman Joma’a Barakallah for his leadership role in the Rapid Support Forces (RSF), a primary party responsible for the ongoing violence against civilians in Sudan since April 2023.

For identification information on Barakallah and a notice on amendments to OFAC's Sudan Sanctions Regulations, see BankersOnline’s yesterday's OFAC Update.

11/13/2024

FinCEN proposes form for Residential Real Estate Rule

Today, FinCEN published [89 FR XXXXX] a 61-day notice in the Federal Register concerning the form that select real estate professionals will use to report information about certain residential real estate transfers under the Residential Real Estate Rule. This notice gives the public an opportunity to comment on the reporting form, as well as FinCEN’s estimate of the burden involved in the reporting process. Comments will be accepted through January 13, 2025.

11/13/2024

FDIC survey: 96 percent of households were banked in 2023

The FDIC reports that nearly 96 percent of all U.S. households were banked in 2023, according to just-released national FDIC survey data. The 2023 FDIC National Survey of Unbanked and Underbanked Households found that 4.2 percent of U.S. households (representing 5.6 million households) lacked a bank or credit union account.

While the nation’s overall unbanked rate remains at its lowest level since the FDIC survey began in 2009, lower-income, less-educated, Black, Hispanic, disabled, and single-parent households continue to be significantly more likely to be unbanked. In addition, the FDIC survey found two-thirds (66.2 percent) of unbanked households relied entirely on cash while a third (33.8 percent) of unbanked households relied upon a combination of prepaid cards or nonbank online payment services such as PayPal, Venmo or Cash App to conduct transactions.

11/12/2024

Alliance Credit Union of Florida conserved

The NCUA on Friday reported that Florida's Office of Financial Regulation placed Alliance Credit Union of Florida into conservatorship, and appointed the NCUA as conservator.

According to the Credit Union Times, at the end of 2023, the credit union reported a loss of $184,231, and losses continued to pile up in each quarter of 2024.

11/12/2024

Invesco Advisers to pay $17.5M for misleading statements

The Securities and Exchange Commission on Friday reported that it had charged Invesco Advisers, Inc. for making misleading statements about the percentage of company-wide assets under management that integrated environmental, social, and governance (ESG) factors in investment decisions. The Atlanta-based registered investment adviser agreed to pay a $17.5 million civil penalty to settle the SEC’s charges.

According to the SEC’s order, from 2020 to 2022, Invesco told clients and stated in marketing materials that between 70 and 94 percent of its parent company’s assets under management were “ESG integrated.” However, in reality, these percentages included a substantial amount of assets that were held in passive ETFs that did not consider ESG factors in investment decisions. Furthermore, the SEC’s order found that Invesco lacked any written policy defining ESG integration.

Without admitting or denying the order’s findings, Invesco also agreed to cease and desist from violations of the charged provisions and be censured.

11/12/2024

Federal Reserve updates its Capital Stock regulation

The Federal Reserve Board has published [89 FR 88877] a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I (12 C.F.R. Part 209). Federal Reserve Bank (Reserve Bank) stockholders that have total consolidated assets above the threshold receive a different dividend rate on their Reserve Bank stock than stockholders with total consolidated assets at or below the threshold (which is being increased to $12,841,000,000).

The amendments, which are effective today but will apply beginning on January 1, 2025, have been noted in affected sections of Regulation I in the BankersOnline Regulations webpages.

11/12/2024

FinCEN report on BOI reporting outreach

FinCEN has reported its September 2024 outreach efforts on its Beneficial Ownership Reporting Rule requirements.

The report also included a list of upcoming events at which FinCEN representatives are scheduled to further disseminate BOI reporting information through the end of the year.

11/12/2024

OFAC looking for website feedback

OFAC is asking for user opinions of their website. They are asking site users to take about ten minutes to complete a survey to help them improve their services, enhance users' experience, and create new features.

The survey can be found HERE.

11/08/2024

Federal Reserve releases FOMC statement

The Federal Reserve Board has released the Statement of the Federal Open Market Committee following its meeting on November 6 and 7. The committee said that recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated.

The Committee "decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."

The implementation note released with the Minutes indicates that the Board of Governors voted unanimously to lower the interest rate paid on reserve balances to 4.65 percent, effective November 8, 2024, and to approve a 1/4 percentage point decrease in the primary credit rate to 4.75 percent, effective November 8, 2024.

11/08/2024

Navy Federal CU paying $95M for surprise OD fees

The CFPB has announced a consent order filed in an Administrative Proceeding against Navy Federal Credit Union for charging "illegal overdraft fees." The Bureau said that, from 2017 to 2022, Navy Federal charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases, even when their accounts showed sufficient funds at the time of the transactions. The CFPB is ordering Navy Federal to refund more than $80 million to consumers, stop charging illegal overdraft fees, and pay a $15 million civil penalty to the CFPB’s victims relief fund.

The CFPB said Navy Federal illegally charged it members' accounts in two ways.

  1. Charging OD fees on "approved positive, settled negative" or APSN debit card transactions, collecting an average of $44 million a year, in spite of warnings about such fees by federal regulators, including the CFPB and the Federal Reserve Board, as early as 2015.
  2. Charging member accounts that received money via Zelle, PayPal, and similar peer-to-peer payment services when Navy Federal's systems showed those funds as immediately available, but the credit union failed to disclose that payments received after 10:00 a.m. Eastern (later 8:00 p.m.) would not actually post to the accounts until the next business day. Some members tried using those funds and were charged OD fees.

In addition to the order's requirement to pay the $15 million civil money penalty and $80 million in refunds to Navy Federal members, there is a provision in the order banning Navy Federal from charging OD fees for APSN transactions or resulting from delayed posting of funds received from peer-to-peer payment networks.

  • NCUA Chairman Todd M. Harper's Statement on the CFPB's settlement with Navy Federal Credit Union.

11/08/2024

Reserve Banks released 10 CRA evaluations in October

Our monthly review of the Federal Reserve Board's archive of Community Reinvestment Act evaluations found that the Reserve Banks released ten evaluations of state-chartered member banks in the month of October, all with Satisfactory ratings.

11/07/2024

OCC names three Senior National Bank Examiners

The OCC has announced its designation of Dewayne Lott, Ron Pasch, and Tanya Smith as Senior National Bank Examiners.

The Senior National Bank Examiner designation recognizes examiners who have distinguished themselves through high-quality performance and service as field examiners, subject matter experts, and advisors on highly complex and technical bank supervision issues. This is the highest honor bestowed on national bank examiners.

11/07/2024

U.S. expands sanctions on corrupt BiH patronage network

Yesterday, the Treasury Department reported that OFAC has designated one individual and one entity who support a corrupt patronage network in Bosnia and Herzegovina (BiH) that is attempting to evade U.S. sanctions.

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

11/07/2024

FHFA to partner with Fannie/Freddie for tribal communities housing access

The Federal Housing Finance Agency has announced two partnerships involving Fannie Mae, Freddie Mac, and Federal Home Loan Banks (FHLBanks) to boost awareness and liquidity for programs that expand housing access for tribal communities.

In one partnership, the FHLBank of Des Moines will promote a Freddie Mac mortgage product intended to improve credit access for federally recognized Native American tribes. In the other, Fannie Mae will purchase loans originated through the FHLBank Mortgage Partnership Finance (MPF) program — administered by the FHLBank of Chicago — to increase mortgage liquidity for tribal communities.

11/07/2024

FTC issues order against AI-enabled review platform

The FTC has reported it has charged Sitejabber, a company offering an AI-enabled consumer review platform, deceived consumers by misrepresenting that ratings and reviews it published came from customers who experienced the reviewed product or service, artificially inflating average ratings and review counts.

Under a proposed order settling the agency’s complaint, Sitejabber will be prohibited from making such misrepresentations in the future and from making other misrepresentations about consumer ratings or reviews.

According to the FTC’s complaint, GGL Projects, Inc., which does business as Sitejabber, collected ratings and reviews for its online business clients from consumers at the time of purchase, before they received or had the chance to experience the products or services they bought. For example, after online customers checked out, they were asked to “rate your overall shopping experience so far” on a 5-star scale and then to “type a quick message about your shopping experience so far.” Sitejabber allegedly used these point-of-sale ratings and reviews to deceptively inflate the average ratings and review counts of its clients on the company’s review platform, claiming that the ratings “indicat[e] that most customers are generally satisfied with their purchases.”

11/06/2024

FTC sues Dave

The Federal Trade Commission yesterday announced it has filed a complaint against Dave, Inc., a Delaware corporation behind the "Dave" online cash advance app, for allegedly using misleading marketing to deceive consumers about the amount of its cash advances, charging consumers undisclosed fees, and charging so-called “tips” to consumers without their consent.

Dave describes the consumers it targets as being “financially vulnerable” or “financially coping,” including those whose spending exceeds their income, who have minimal savings, and who overdraft their bank accounts frequently. Dave’s advertising is dominated by claims that consumers can receive “up to $500” by using Dave, and that they can do so “instantly.” According to the FTC’s complaint, though, Dave’s service failed to live up to its promises. Despite promising “instant” or “on the spot” access to advances, Dave requires users to pay an “Express Fee” to get instant access to that money that is not disclosed until after the sign-up process is complete and the user has given Dave access to their bank account, according to the complaint. This fee ranges from $3 to $25, and consumers who do not pay the fee have to wait two to three business days to receive their advance.

Dave’s undisclosed charges go beyond this Express Fee, though, according to the complaint. Consumers who take advances from Dave are often charged a surprise fee of 15% of their advance that’s described by Dave as a “tip.” Many consumers are either unaware that Dave is charging them or unaware that there is any way to avoid being charged. Dave’s interface leads consumers to believe that, for every percentage of tip they are giving, Dave is donating an actual healthy meal to a needy child. But, according to the complaint, Dave donates just 10 cents for each percentage in “tip” the consumer clicks on and keeps the rest of the “tip” amount. Dave’s donation does not pay for the food required to actually provide a meal. Dave has reported receiving more than $149 million in revenue for these "tips" alone from 2022 through the first half of 2024. Dave also charges a poorly disclosed $1 monthly "membership fee" charged directly to members' bank accounts, and makes it difficult for consumers to cancel their membership.

The FTC's complaint seeks a permanent injunction, a monetary judgment, and other relief.

11/06/2024

FDIC to unveil tool to promote creation of new minority banks

The FDIC has announced it will introduce a new online tool to help financial institutions, investors, and other interested groups to identify neighborhoods that could benefit from banking services. The FDIC’s new Minority Banking Opportunity Explorer will be presented at a meeting of the agency’s Minority Depository Institutions (MDI) Subcommittee to the Advisory Committee on Community Banking today.

This new tool supports FDIC’s statutory mission to promote and encourage the creation of new minority depository institutions by assisting financial institution organizing groups with exploring potential business opportunities in areas that may meet the "community served" part of an MDI designation. The tool can also support existing MDIs’ growth by identifying new branch locations or advertising opportunities.

11/06/2024

FDIC issues guidance to banks affected by weather in South Dakota and New Mexico

The FDIC has issued Financial Institution Letters with guidance to help financial institutions and facilitate recovery in areas affected by severe weather.

  • FIL-78-2024 for financial institutions in areas of South Dakota affected by the Cheyenne River Sioux Tribe severe storm, straight-line winds, and flooding on July 13 and 14, 2024
  • FIL-79-2024 for financial institutions in areas of New Mexico affected by a severe storm and flooding on October 19 and 20, 2024

11/05/2024

FinCEN provides BOI reporting relief to hurricane victims

FinCEN recently announced that certain victims of Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine will receive an additional six months to submit beneficial ownership information reports, including updates and corrections to prior reports.

FinCEN has issued the five Notices below extending the filing deadlines for reporting companies that 1) have an original reporting deadline beginning one day before the date the specified disaster began and ending 90 days after that date, and 2) are located in an area that is designated both by the Federal Emergency Management Agency as qualifying for individual or public assistance and by the Internal Revenue Service as eligible for tax filing relief.

Notice regarding—

11/05/2024

FDIC lists 51 bank CRA evaluations

The FDIC has released a list of 51 banks examined for Community Reinvestment Act compliance whose evaluations were recently made public. Forty-seven of the banks on the list received ratings of Satisfactory. Three banks received Needs to Improve ratings.

We congratulate NorthEast Community Bank, White Plains, New York, on its receipt of a rating of Outstanding.

11/05/2024

FTC sues phantom debt collector Global Circulation

The Federal Trade Commission yesterday announced it has taken action against Global Circulation, Inc. (GCI), a Georgia-based debt collector that tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and other unlawful actions. In response to a federal court complaint filed against GCI and its owner, Kenneth Redon III, the court agreed to temporarily halt the company’s operation and ordered it to turn its assets over to a court-appointed receiver.

In its complaint, the FTC alleges that GCI and Redon contacted consumers under a number of fictitious company names, including Total Mediation Solutions, Total Consumer Solutions, and Consumer Impact Recovery. The company’s collectors call consumers out of the blue and threaten them with arrest, wage garnishment, and lawsuits if they don’t pay a supposed debt. However, the debts GCI is attempting to collect either don’t exist at all or are not debts GCI can legally collect. The company’s calls to consumers can be incessant, with some receiving calls multiple times a day, leaving voicemails saying to call about an urgent legal matter. When consumers answer, they’re told that, unless they pay the bogus debts on that phone call using a credit or debit card, they’ll face legal peril.

The complaint alleges that GCI’s deceptive statements and the urgency behind them have helped convince thousands of consumers to pay at least $7.6 million in bogus debts to the company.

11/04/2024

New tradecraft of Iranian Cyber group

The FBI, the Treasury Department, and the Israel National Cyber Directorate have issued a Cybersecurity Advisory (CSA) to warn network defenders of new cyber tradecraft of the Iranian cyber group Emennet Pasargad, which has been operating under the company name Aria Sepehr Ayandehsazan (ASA) and is known by the private sector terms Cotton Sandstorm, Marnanbridge, and Haywire Kitten.

The group exhibited new tradecraft in its efforts to conduct cyberenabled information operations into mid-2024 using a myriad of cover personas, including multiple cyber operations that occurred during and targeting the 2024 Summer Olympics – including the compromise of a French commercial dynamic display provider. ASA has also undertaken a project to harvest content from IP cameras and used online resources related to Artificial Intelligence. Since 2023, the group has exhibited new tradecraft including the use of fictitious hosting resellers to provision operational server infrastructure to its own actors as well as to an actor in Lebanon involved in website hosting. Recently released reporting from Microsoft indicates this group has demonstrated interest in election-related websites and media outlets, suggesting preparations for future influence operations.

The CSA provides the threat group’s tactics, techniques, and procedures (TTPs), including its leveraging of online resources related to Artificial Intelligence, and indicators of compromise (IOCs). The CSA also highlights similar activity from a previous FBI advisory that was published on 20 October 2022. This new advisory’s information and guidance are derived from FBI investigative activity and technical analysis of this group’s intrusion activity against U.S. and foreign organizations and engagements with numerous entities impacted by this malicious activity.

The authoring agencies recommend all organizations follow guidance provided in the Mitigations section to defend against the Iranian cyber group’s activities.

11/04/2024

IRS announces 401(k) and IRA contribution limits

The Internal Revenue Service on Friday announced that the amount individuals can contribute to their 401(k) plans in 2025 has increased to $23,500, up from $23,000 for 2024. The IRS also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2025 in Notice 2024-80.

The limit on annual contributions to an IRA remains $7,000. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2025.

11/04/2024

NCUA bars four individuals from industry

The NCUA has announced it issued three consent orders and one prohibition notice in October permanently prohibiting individuals from participating in the affairs of any federally insured depository institution.

Consent orders were issued to:

  • Gloria J. Hall, a former employee of Prairie View Federal Credit Union, Prairie View, Texas
  • Diane Stephens, a former employee of Priority First Federal Credit Union, Du Bois, Pennsylvania
  • Laurie Allen, a former employee of Vibrant Credit Union, Danville, Illinois

A Notice of Prohibition was issued to Salusthian Lutamile, a former employee of IDB Global Federal Credit Union, Washington, D.C.

11/04/2024

CFPB proposes settlement with Townstone Financial

The CFPB has announced it has filed a Proposed final judgment and order to resolve its case against Townstone Financial for discriminatory lending practices and redlining African American neighborhoods in Chicago.

If entered by the court, the proposed order would prohibit Townstone from taking any actions that violate the Equal Credit Opportunity Act (ECOA) and require the company to pay a $105,000 penalty to the CFPB’s victims relief fund. Today’s action follows lengthy contested litigation and a unanimous July 2024 decision from the United States Court of Appeals for the Seventh Circuit that stated that the ECOA prohibits lenders from discouraging prospective applicants on a prohibited basis from applying for loans.

The Seventh Circuit’s decision held unanimously that “an analysis of the text of the ECOA as a whole makes clear that the text prohibits not only outright discrimination against applicants for credit, but also the discouragement of prospective applicants for credit,” which is consistent with the Bureau’s regulation (Regulation B) interpreting ECOA.

11/04/2024

SEC fines JPMorgan affiliates $151 million

The Securities and Exchange Commission has announced it has charged J.P. Morgan Securities LLC (JPMS) and J.P. Morgan Investment Management Inc. (JPMIM) – both affiliates of JPMorgan Chase & Co. (JP Morgan) – in five separate enforcement actions for failures including misleading disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers.

Without admitting or denying the findings in the SEC’s orders, the two affiliates agreed to pay more than $151 million in combined civil penalties and voluntary payments to investors to resolve four of the ­actions. The SEC did not impose a penalty in one of the actions, taken against JPMS, because JPMS cooperated in the investigation and undertook remedial measures.

SEC Orders:

11/04/2024

FHFA simplifies process for affordable housing subsidies

The Federal Housing Finance Agency has announced its issuance of Advisory Bulletin 2024-05, "Affordable Housing Program: Determining the Need for Affordable Housing Program Subsidy In Rental Projects," that simplifies the process for project sponsors to receive Federal Home Loan Bank (FHLBank) funds for affordable housing projects.

The Advisory Bulletin reinforces the importance of scrutinizing funding requests, using rigorous feasibility guidelines based on sound reasoning, to ensure that Affordable Housing Program (AHP) funds support the projects most in need. The bulletin provides for a streamlined compliance process and eliminates uncertainty for project sponsors about the amount of their AHP award. It also provides further clarity to the FHLBanks on determining the need for an AHP subsidy when a rental project includes capitalized reserves and supportive services.

11/01/2024

OFAC sanctions group trafficking fentanyl into U.S.

Yesterday, the Treasury Department reported that OFAC had sanctioned five Mexican nationals and two Mexico-based entities linked to La Linea, a violent Mexico-based drug trafficking organization responsible for trafficking fentanyl and other deadly drugs into the United States.

See BankersOnline’s October 31, 2024, OFAC Update for the names and identifying information of the designated individuals and businesses .

11/01/2024

CFPB and CMS joint statement to protect Medicare recipients

The CFPB yesterday announced it has joined with the Centers for Medicare & Medicare Services (CMS) in a joint statement to protect people with Medicare living at or below the poverty line from unlawful medical bills. These people in the Qualified Medicare Beneficiary group represent about one in eight Medicare recipients nationwide. Federal law generally prohibits healthcare providers who accept Medicare from billing these people – referred to as “QMBs” – for cost-sharing, such as co-pays or deductibles.

The agencies' joint statement emphasizes that Traditional Medicare providers and suppliers, Medicare Advantage providers and suppliers, and debt collectors can be sanctioned by CMS or be liable under federal law for improperly billing these recipients. CMS is also releasing new resources clarifying that healthcare providers must refund any improper charges, regardless of whether they received incorrect information about a recipient's QMB status from Medicare Advantage plans.

The joint statement describes the CMS guidance issued yesterday and explains how the laws that the CFPB administers and enforces apply to improper debt collection of QMBs. Specifically, the statement explains:

  • Debt collectors may not collect on improper and inaccurate bills targeting Medicare beneficiaries. The Fair Debt Collection Practices Act prohibits collecting bills that are not actually owed or are in the wrong amount.
  • Debt collectors may not tarnish credit reports with improper and inaccurate bills. Furnishing inaccurate information may violate the Fair Credit Reporting Act, and may also demonstrate that furnishers do not verify the accuracy of information they furnish.

11/01/2024

Consumer Compliance Update published

The Federal Reserve System has issued the third 2024 issue of Consumer Compliance Outlook. This issue includes articles on:

  • Top Federal Reserve System Compliance Violations in 2023 Under the Flood Disaster Protection Act of 1973
  • Top Federal Reserve System Compliance Violations in 2023 Under the Real Estate Settlement Procedures Act and Regulation X
  • Consumer Compliance Requirements for Purchasers of Residential Mortgage Loans
  • Consumer Compliance Requirements for Servicers of Purchased Mortgage Loans

11/01/2024

FDIC guidance to banks in areas of Arizona

FDIC FIL-77-2024, issued yesterday, describes steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas affected by the Havasupai Tribe Flooding August 22–23, 2024..

11/01/2024

FEMA to allow monthly installment payments for NFIP coverage

The Federal Emergency Management Agency today published [89 FR 87299] a final rule revising the National Flood Insurance Program's regulations to offer NFIP policyholders who are not required to escrow their premiums and fees for flood insurance the option of paying their annual flood insurance premium in monthly installments.

The rule will become effective December 31, 2024.

11/01/2024

VyStar Credit Union fined $1.5M for botched systems conversion

The CFPB yesterday announced action against VyStar Credit Union for harming consumers through its botched rollout of a new online banking system. In May 2022, VyStar transitioned to a new, dysfunctional online banking platform that made it difficult for credit union members to perform basic banking functions for weeks, with some features unavailable for more than six months. Families incurred fees and costs as a result of these problems. The CFPB is ordering VyStar to ensure that all consumers are made whole. VyStar must also pay a $1.5 million civil penalty to the CFPB’s victims relief fund.

VyStar, formerly known as JAX Navy Federal Credit Union, is a Florida state-chartered credit union headquartered in Jacksonville with 70 branches in Florida and 10 branches in Georgia. VyStar is one of the largest credit unions in the country, with approximately $14.75 billion in total assets and over 980,000 members. In May 2022, VyStar attempted to launch a new virtual banking platform. VyStar anticipated banking services would be inaccessible for several days during the transition to the new platform, but it turned out to be much longer. The new system crashed upon launch because VyStar brought it online prematurely and failed to establish or follow critical processes to ensure its success. The platform was taken offline soon after launch. Upon bringing the system back online, the new platform lacked key banking services, some of which were not restored for months.

For further details, see “VyStar CU pays $1.5M for botched systems upgrades” in BankersOnline’s Penalties pages.

10/31/2024

3rd-country sanctions evaders and supporters of Russian military targeted

The Department of the Treasury has announced it has sanctioned 275 individuals and entities involved in supplying Russia with advanced technology and equipment that it desperately needs to support its war machine. Yesterday’s action targets both individual actors and sprawling sanctions evasion networks across 17 jurisdictions, including India, the People’s Republic of China (PRC), Switzerland, Thailand, and Türkiye. In addition to disrupting global evasion networks, this action also targets domestic Russian importers and producers of key inputs and other materiel for Russia’s military-industrial base.

Treasury reported that the Department of State also targeted sanctions evasion and circumvention in multiple third countries, including several PRC-based companies exporting dual-use goods that fill critical gaps in Russia’s military-industrial base and entities and individuals in Belarus related to the Lukashenka regime’s support for Russia’s defense industry. State also targeted several senior Russian Ministry of Defense officials and defense companies and those supporting Russia’s future energy production and exports.

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

10/31/2024

FinCEN reports FATF actions at recent meeting

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), updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies at the conclusion of its plenary meeting this month. FinCEN said 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 October 25, 2024, the FATF added Algeria, Angola, Côte d’Ivoire, and Lebanon to its list of Jurisdictions Under Increased Monitoring and also removed Senegal from the list.

The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same, with Iran, the Democratic People’s Republic of Korea (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

10/30/2024

CFPB distributing $191M+ to consumers harmed by Tempoe

A CFPB blog article reports that the Bureau, through JND Legal Administration, has begun distributing refund checks to over 250,000 consumer harmed by leasing company Tempoe, LLC. Tempoe offered point-of-sale financing at major retailers, including Sears and Kmart. The CFPB took action against the company for tricking customers into expensive leasing agreements by hiding the contract terms and costs. Tempoe’s practices left hundreds of thousands of customers on the hook to pay for merchandise they couldn’t afford or return. Tempoe generated approximately $192 million in revenues from about 325,000 consumers from its unlawful conduct.

As a result of the CFPB’s enforcement action, Tempoe was permanently banned from offering consumer leases. They were also required to close any existing lease agreements and release customers from making any further payments on their leased merchandise.

10/30/2024

FHFA House Price Index up 0.3 percent in August, 4.2 percent for year

The Federal Housing Finance Agency has reported that U.S. house prices rose 0.3 percent in August, according to the FHFA seasonally adjusted monthly House Price Index (HPI). House prices rose 4.2 percent from August 2023 to August 2024. The previously reported 0.1 percent price increase in July was revised upward to 0.2 percent.

For the nine census divisions, seasonally adjusted monthly price changes from July 2024 to August 2024 ranged from -0.1 percent in the East North Central and New England divisions to +0.9 percent in the West North Central division. The 12-month changes were all positive, ranging from +2.4 percent in the West South-Central division to +6.3 percent in the East North Central division.

10/30/2024

FTC sending $1M+ to consumers in Rhinelander Auto case

The Federal Trade Commission reports it is sending more than $1 million in refunds to consumers who were allegedly harmed by Rhinelander Auto Center’s junk fees and discriminatory practices.

The FTC and State of Wisconsin took action against Rhinelander Auto and its general manager in 2023, alleging that they regularly charged many customers junk fees for “add-on” products or services without the customer’s consent. The defendants also discriminated against American Indian customers in the cost of financing by adding more “markup” to their interest rates, according to the complaint.

The FTC is sending checks to 7,531 consumers.

10/29/2024

FHFA updates Enterprise policies on appraisals, repurchase alternatives and pricing notifications

The Federal Housing Finance Agency has announced updates to several Fannie Mae and Freddie Mac (the Enterprises) policies that are intended to enhance efficiencies and promote cost savings in the single-family mortgage market. These policy updates are the result of engagement with public- and private-sector stakeholders and cover four key policy areas:

  • Expanded eligibility for appraisal waivers on purchase loans
  • Expanded Uniform Appraisal Dataset (UAD) to include Federal Housing Administration (FHA) data
  • Expanded eligibility for Freddie Mac performing loan repurchase alternative pilot
  • Advance notice of certain Enterprise pricing increases

Additional information can be found in these press releases:

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