Find Top Stories by Day or Week

Two workshops for directors of national community banks and federal savings associations supervised by the OCC will be held in Springfield, Illinois, on May 3-4. The Risk Governance workshop on May 3 combines lectures, discussion, and exercises to provide practical information for directors to effectively measure and manage risks. The workshop also focuses on the OCC's approach to risk-based supervision and major risks in the financial industry. The Compliance Risk workshop on May 4 combines lectures, discussion, and exercises on the critical elements of an effective compliance risk management program. The workshop also focuses on major compliance risks and critical regulations. Topics of discussion include the Bank Secrecy Act, Community Reinvestment Act, and the Truth-in-Lending (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA) Integrated Disclosures Rule, also known as TRID.

The OCC has released its Mortgage Metrics Report for the Fourth Quarter of 2015. The report indicates 94.1 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 93.9 percent a quarter earlier. The report also showed that foreclosure activity has declined steadily since the end of 2013, decreasing 15.9 percent from the end of 2014. Reporting servicers initiated 63,387 new foreclosures during the fourth quarter of 2015, compared with 75,395 a year earlier. The mortgages included in the report comprise 41 percent of all residential mortgages outstanding in the United States or approximately 21.5 million loans totaling $3.7 trillion in principal balances.

In remarks at the Carnegie Endowment for International Peace, Secretary Lew reviewed the evolution of international economic sanction programs and the lessons learned from that effort.

The OCC has released its Quarterly Report on Bank Trading and Derivatives Activities for the fourth quarter 2015. Trading revenue of U.S. commercial banks and savings associations fell to $4.3 billion, down from $5.3 billion in the previous quarter and the notional amount of derivatives held by insured U.S. commercial banks declined $11 trillion during the fourth quarter to $181 trillion.

The Federal Reserve Board has released a Board report, Consumers and Mobile Financial Services 2016, which documents consumers' use of mobile phones--Internet-enabled smartphones as well as more basic phones with limited features--as they bank and carry out financial activities. It is the Board's fifth annual look at how consumers use mobile phones to access banking services ("mobile banking"), make payments, transfer money, or pay for goods and services ("mobile payments"), and inform financial decisions, as well as their reasons for using these services. According to the report, as of November 2015, 43 percent of adults with mobile phones and bank accounts reported using mobile banking—-an increase of 4 percentage points from the prior year's survey. The most common way that consumers use mobile banking is checking their account balances or recent transactions, followed by transferring money between accounts. More than half of mobile banking users received an alert from their financial institution through a text message, push notification, or e-mail--making this the third most common use of mobile banking. Consistent with findings from prior years, a majority of consumers using mobile banking and mobile payments cite convenience or getting a smartphone as their main reason for adoption.

The Consumer Financial Protection Bureau has posted updates to three of its Small Entity Compliance Guides and three charts for implementation of Dodd-Frank Act Title XIV mortgage lending rules, to reflect the Bureau's recent amendments to expand eligibility for the special provisions allowing certain small creditors to issue balloon-payment qualified mortgages and balloon-payment high cost mortgages, and exempting them from the escrow requirement for higher-priced mortgage loans. The updates, all of which can be found on the Bureau's Title XIV Implementation Page, include:

• Compliance Guide for ATR/QM
• Compliance Guide for HOEPA
• Compliance Guide for the HPML Escrow Rule
• Transaction Coverage and Exemption Chart
• Small Creditor QM Flowchart
• ATR/QM Comparison Chart

The Treasury Department has announced that the United States and the Kingdom of Saudi Arabia have jointly acted to disrupt the fundraising and support networks of al-Qaida, the Taliban, and Lashkar-e-Tayyiba (LT) by imposing sanctions on four individuals and two organizations with ties across Afghanistan, Pakistan, and Saudi Arabia. For details see our 3/31/2016 OFAC Update.

The OCC has issued Alert 2016-6 concerning counterfeit cashier's checks that appear to be issued by Washington Federal Bank, N.A., Seattle, Washington. Details can be found in our Alerts and Counterfeits entry.

The Federal Reserve has posted the January 2016 G.20 Finance Companies Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit report.

The NCUA has posted a reminder that registration is still open for “The Pathway to Financial Well-being,” the regulator’s third annual financial literacy webinar. The webinar is free and will be held on March 30, 2016, at 2 p.m. ET.

The Bureau has announced the release of its March consumer complaint snapshot, which focuses on complaints related to debt collection. The report shows that the most common debt collection complaint involves attempts to collect on a debt the consumer reported was not owed. This month’s snapshot also highlights trends seen in complaints from consumers in Florida. The Bureau’s fifth annual Fair Debt Collection Practices Act (FDCPA) report was also posted.

The NCUA has announced that the State of Michigan Department of Insurance and Financial Services has liquidated Veterans Health Administration Credit Union of Detroit and named the National Credit Union Administration as liquidating agent. Public Service Credit Union of Romulus, Michigan, immediately assumed Veterans Health Administration Credit Union’s members, assets, loans and shares. This is the fourth federally insured credit union liquidation in 2016.

The OCC has issued Alert 2016-5 regarding fictitious correspondence in circulation allegedly issued by the OCC or other government entities regarding funds purportedly under the control of the OCC. Correspondence may be distributed via e-mail, fax, or postal mail. Three variations of the fake documents were also provided. See the BOL Alerts and Counterfeits page for the details.

The OCC will host a workshop May 2–4, 2016, in Wilmington, Delaware, at the DoubleTree by Hilton Hotel, for directors of national community banks and federal savings associations supervised by the OCC. The Building Blocks for Directors workshop combines lectures, discussion, and exercises to provide practical information on the roles and responsibilities of board participation for both new and experienced directors. Taught by seasoned OCC supervision staff, the workshop focuses on directors’ duties and core responsibilities, discusses major laws and regulations, and increases familiarity with the examination process.

The CFPB has posted on its Blog the third article in its series on consumer choices in buying a first home.

The Federal Housing Finance Agency (FHFA) has released its February 2016 Index, which indicates that nationally, interest rates on conventional purchase-money mortgages decreased from January to February, according to several indices of new mortgage contracts. The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.88 percent for loans closed in late February, down 10 basis points. The average interest rate on all mortgage loans was 3.89 percent, down 8 basis points. The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.11 percent, down 12 basis points. The effective interest rate on all mortgage loans was 4.03 percent in February, down 7 basis points. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage. The average loan amount for all loans was $316,700 in February, up $6,300.

In a speech at the Economic Club of New York, Federal Reserve Board Chair Yellen discussed the activities of the Board relative to the goals of maximum employment and price stability. Dr. Yellen explained why the Federal Open Market Committee (FOMC) anticipates that only gradual increases in the federal funds rate are likely to be warranted in coming years, emphasizing that this guidance should be understood as a forecast for the trajectory of policy rates that the Committee anticipates will prove to be appropriate to achieve its objectives, conditional on the outlook for real economic activity and inflation. She noted the FOMC decided to leave the stance of policy unchanged in both January and March, while emphasizing its commitment to adjust monetary policy as needed to achieve employment and inflation objectives. Yellen reviewed recent developments, the baseline outlook, risks to the outlook for real economic activity and inflation, and monetary policy implications. She concluded, "I continue to strongly believe that monetary policy is most effective when the FOMC is forthcoming in addressing economic and financial developments such as those I have discussed in these remarks, and when we speak clearly about how such developments may affect the outlook and the expected path of policy."

The Federal Reserve has announced the selection of McKinsey & Company to support Faster Payments Task Force efforts this year to assess faster payments solution proposals from various providers across the United States payments industry.

The Federal Reserve established the 331-member Faster Payments Task Force in 2015 to support a broader effort to improve the speed, safety and efficiency of payments. The task force is specifically charged with identifying effective approaches for implementing faster payment capabilities in the United States. Beginning in April, interested task force members will submit comprehensive faster payment solution proposals to be analyzed using 36 effectiveness criteria identified by the task force.

The Federal Emergency Management Agency has published a final rule in this morning's Federal Register identifying communities in Colorado, Virginia and Wisconsin where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on May 16, 2016, for noncompliance with the floodplain management requirements of the program.

Update: FEMA published a correction to this Final Rule on April 25, 2016, at 81 FR 24036

The Federal Reserve Board has posted the most recent semiannual update of its Bank Holding Company (BHC) Supervision Manual. The January 2016 update includes revisions to:

• Section 2060.1—Audit (Management Information Systems)
• Section 2093.0—Control and Ownership (Shareholder Protection Agreements)
• Section 4061.0—Consolidated Capital (Capital Planning)
• Section 4060.7—Consolidated Capital (Assessing Capital Adequacy and Risk at Large Banking Organizations and Others with Complex Risk Profiles)
• Section 4063.0—Federal Reserve Supervisory Assessment of Capital Planning and Positions for LISCC Firms and Large and Complex Firms (new)
• Section 4065.0—Federal Reserve Supervisory Assessment of Capital Planning and Positions for Large and Noncomplex Firms
• Section 4080.0—Federal Reserve System Bank Holding Company Surveillance Program

The Federal Trade Commission has announced that notice will be posted soon in the Federal Register seeking comments on a proposed survey to determine the prevalence of consumer fraud in the United States during 2016. The Commission has conducted three previous surveys of consumer fraud with the most recent covering 2011. The surveys examine the extent of fraud and the degree to which certain groups of consumers are more or less likely to become victims. They also help the agency determine how best to combat fraud.

ICE has announced the arrest of Augustin Enrique Cruz, AKA "Tinky," a twenty-two-year-old Tucson resident, on various federal criminal charges, including money laundering, narcotics trafficking, and tunnel-related offenses. His California home was used to conceal the U.S. end of a 400-yard long cross-border drug smuggling tunnel to a coffee shop in Mexico. After the purchase of a lot in 2014, local contractors were hired to build a new house and directed to leave a space in the foundation for a floor safe, which served as the exit point for the tunnel. It was the 12th large-scale drug smuggling tunnel discovered along the California-Mexico border since 2006.

The FDIC has released a list of 32 orders of administrative enforcement actions taken against banks and individuals in February. Included were two consent orders, 13 removal and prohibition orders, five Section 19 orders, four civil money penalties (CMPs), and eight terminations of earlier actions.

Of the CMPs, one was issued to a Cuba City, Wisconsin bank for engaging in a pattern or practice of committing violations of the Flood Disaster Protection Act and/or the notice requirements under section 1364 of the National Flood Insurance Act of 1968, and/or Part 339 of the FDIC's Rules and Regulations, by, on multiple occasions, making, increasing, extending or renewing loans secured by a building or mobile home located or to be located in a special flood hazard area without requiring that the collateral be covered by sufficient flood insurance.

The other three CMPs, each for $15,000, were imposed on individuals who are or were institution-affiliated parties of a bank in Palos Hills, Illinois, for allegations of recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty by knowingly causing the bank to file a call report not in accordance with instructions.

FinCEN has announced a new final rule imposing a prohibition on U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, FBME Bank Ltd. in place of the rule published on July 29, 2015. FinCEN’s imposition of a prohibition under the fifth special measure will guard against the international money laundering and terrorist financing risks that FBME poses to the U.S. financial system. This rule will take effect 120 days from the date of publication in the Federal Register.

FinCEN's original rule, published on July 20, 2015, would have become effective August 28, 2015. On August 27, 2015, the United States District Court for the District of Columbia granted FBME’s motion for a preliminary injunction and enjoined the Final Rule from taking effect. On November 6, 2015, the court granted FinCEN’s motion for voluntary remand to allow for further rulemaking proceedings. On November 27, 2015, FinCEN published in the Federal Register a Notice to re-open the Final Rule for 60 days to solicit additional comment in connection with the rulemaking, particularly with respect to the unclassified, non-protected documents that supported the rulemaking, and whether any alternatives to the prohibition on the opening or maintaining of correspondent accounts for FBME would effectively mitigate the money laundering and terrorist financing risk associated with FBME. After re-opening the comment period, FinCEN considered all of the special measures available to it under Section 311, as well as conditions rather than a prohibition under the fifth special measure, and concluded that a prohibition under the fifth special measure is the appropriate choice.

• July 24, 2015, Top Story announcing the original final rule.
• August 28, 2015, Top Story announcing court order barring enforcement of rule.
• November 30, 2015, Top Story announcing reopened rulemaking

UPDATE: The rule was published at 81 FR 18480 on March 31, 2016, with an effective date of July 29, 2016.

OFAC has designated entities and individuals for supporting Iran’s ballistic missile program and U.S.-designated Iranian airline Mahan Air. Two Iran-based entities directly involved with Iran’s ballistic missile program were designated and the entry on the SDN List was updated for an entity that exercises operational control over Iran’s ballistic missiles. OFAC also designated two individuals and two entities based in the United Kingdom and two entities based in the United Arab Emirates that have facilitated Mahan Air’s efforts to circumvent sanctions. See our OFAC Update for more information.

The Federal Reserve Board has announced its Survey of Consumer Finances will begin in April. The survey has been conducted every three years since 1983. Participants in the study are chosen at random from 128 areas, including metropolitan areas and rural counties across the United States, using a scientific sampling procedure. The data collected will provide a representative picture of what Americans own (from houses and cars to stocks and bonds), how and how much they borrow, and how they bank. Past study results have contributed to policy discussions regarding recovery of households from the Great Recession, changes in the use of credit, the use of tax-preferred retirement savings accounts, and a broad range of other issues. A letter from Board Chair Yellen will be mailed in mid-April to approximately 13,000 households urging their participation in the study.

FinCEN has announced it has assessed a $10,000 civil money penalty (CMP) against Kustandy Rayyan d/b/a Thriftway Food Mart, Lexington, Kentucky (Thriftway). A FinCEN investigation determined Thriftway was a money services business (MSB) performing check cashing services and selling money orders. During the relevant time, Thriftway would cash approximately $1 million worth of checks monthly. From 2009 through the present, Thriftway willfully violated bank secrecy act (BSA) reporting requirements and failed to implement an effective written anti-money laundering (AML) program

The NCUA has announced acceptance of a $29 million offer of judgment from Credit Suisse to resolve claims arising from losses related to purchases of residential mortgage-backed securities by Members United and Southwest corporate credit unions. The NCUA filed the lawsuit as liquidating agent for the failed corporate credit unions.

FinCEN has posted FIN-2016-G002, "Frequently Asked Questions regarding Prepaid Access," to supplement its November 2, 2011, FAQs on the subject.

The Consumer Financial Protection Bureau has posted a recording of its recent webinar on TRID compliance for construction lending, and updated the Question Index covering the questions addressed during the ongoing series of webinars on TRID implementation.

The CFPB has issued an advisory and a report with recommendations for banks and credit unions on how to prevent, recognize, report, and respond to financial exploitation of older Americans. Financial exploitation, the illegal or improper use of a person’s funds, property or assets, is the most common form of elder abuse and costs seniors billions of dollars per year. The Bureau Blog also featured an article with tips for consumers on how to work with their financial institutions to protect themselves from financial abuse. Prepared remarks from Directory Cordray regarding elder financial abuse were also released.

Sales of new single-family houses in February 2016 were at a seasonally adjusted annual rate of 512,000, according to estimates released jointly today by HUD and the Census Bureau, 2.0 percent above the revised January rate of 502,000 and 6.1 percent below the February 2015 estimate of 545,000.The median sales price of new houses sold in February 2016 was $301,400; the average sales price was $348,900. The seasonally adjusted estimate of new houses for sale at the end of February was 240,000. This represents a supply of 5.6 months at the current sales rate.

The Federal Reserve Board has announced a survey of finance companies will begin in March 2016 as part of the continuing effort to paint a comprehensive view of the range of companies in this sector of the U.S. financial system. The survey collects balance sheet data on major categories of household and business credit receivables and liabilities from finance companies. Results of the survey will further the understanding of the industry. The data provide a benchmark for the System's monthly report on the outstanding accounts receivable of finance companies (presented in the Federal Reserve's Finance Companies statistical release) and provide a comprehensive update on these companies' sources of funds. This information in turn becomes an important input to the estimates of total consumer credit (presented in the Federal Reserve's Consumer Credit statistical release) and the Financial Accounts of the United States. Chair Yellen will send a letter to approximately 2,300 companies urging their participation in the survey.

The CFPB issued an interim final rule on March 22, 2016, to dramatically lower the requirements for meeting the key "rural or underserved" criterion for small creditors, making it possible for many small creditors to continue making qualified mortgage balloon-payment loans, just days before many of those creditors would no longer be able to make balloon-payment loans as "QMs." The Bureau acted under the Helping Expand Lending Practices in Rural Communities (HELP) Act, enacted in December 2015. Effective March 31, 2016, the interim final rule will replace the current "rural or underserved" test -- which requires that more than half a creditor's first-lien covered transactions be made in rural or underserved areas -- with a requirement that the creditor made one such loan in a rural or underserved area in the previous calendar year (or, if an application is received before April 1, in either of the previous two calendar years). Comments on the interim rule will be accepted for 30 days following its publication in the Federal Register (scheduled for March 25, 2016). The amendments, which affect section 1026.35(b)(2) of the regulation, and the commentary to sections 1026.35(b)(2) and 1026.43(f), have been posted in our Regulations pages.

OFAC has posted an OFAC SDN List update to add a listing for a Specially Designated Global Terrorist, and update two listings. See OFAC's update for details.

In testimony before the House Committee on Financial Services, Treasury Secretary Lew discussed the importance of the International Monetary Fund (IMF), the role of multilateral development banks (MDBs) and global challenges regarding protecting the environment, food insecurity, and gender imbalances.

The FDIC has announced it will host a conference on community banking on April 6 in Arlington, Virginia, for community bankers, regulators, researchers, and other interested parties. As part of the FDIC's Community Banking Initiative, the conference will explore strategies for long-term success in the community banking sector. The conference will feature keynotes from both FDIC Chairman Gruenberg and Vice Chairman Hoenig, as well as panel discussions focused on successful community bank business models, key regulatory developments, opportunities and challenges in managing technology, and ownership structure and succession planning. Seats are available on a first-come, first-serve basis.

The March 2016 issue of The NCUA Report examines the key aspects of the NCUA's modernized member business lending rule, and how the change from prescriptive limits to principles-based regulation will provide credit unions greater measures of regulatory relief and flexibility.

The Bureau has announced the release of the CFPB's fourth Annual Servicemembers Report, which analyzes over 19,000 complaints received in 2015 from servicemembers, veterans, and their families, and details related enforcement and outreach efforts. The number of complaints increased 13 percent over those in 2014. For the second year in a row, debt collection, mortgages, and credit reporting were the top three complaint categories for the military community. Debt collection was the top complaint category, comprising nearly half of the military complaints.

The Federal Reserve Board has released the list of bank holding companies that have elected to become or be treated as financial holding companies as of March 17, 2016. The list includes only the top-tier company in each organization.