Skip to content

Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.

Click Now!


Find Top Stories by Day or Week

E.g., Jan 25 2021
E.g., Jan 25 2021

12/16/2020

Final rule: Brokered deposits and interest rate restrictions

The FDIC has issued a final rule revising its regulations relating to the brokered deposits and interest rate restrictions that apply to less than well capitalized insured depository institutions (IDIs). For brokered deposits, the final rule establishes a new framework for analyzing certain provisions of the “deposit broker” definition, including “placing deposits,” “facilitating the placement of deposits,” and “primary purpose.” For the interest rate restrictions, the FDIC amended its methodology for calculating the national rate, the national rate cap, and the local market rate cap. Further, the FDIC explained when non-maturity deposits are accepted and when non-maturity deposits are solicited for purposes of applying the brokered deposits and interest rate restrictions.

With respect to brokered deposits, the final rule:

  • Clarifies when a person meets the "placing deposits” and “facilitation” parts of the deposit broker definition;
  • Provides that a person with an exclusive deposit placement arrangement with one IDI will not meet the “deposit broker” definition;
  • Provides that the “primary purpose” exception will apply when, with respect to a particular business line, the primary purpose of the agent’s or nominee’s business relationship with its customers is not the placement of funds with depository institutions;
  • Designates a list of business relationships that meet the primary purpose exception;
  • Requires written notice for certain designated exceptions;
  • Allows entities that do not meet one of the designated business relationships to apply for a primary purpose exception;
  • Restates that brokered CDs will continue to be considered brokered deposits; and
  • Affirms that third parties that either place or assist in the placement of deposits with a primary purpose of encouraging savings will not qualify for the primary purpose exception.

With respect to interest rate restrictions, the final rule:

  • Defines the “National Rate” as the average (weighted by market share of domestic deposits) of rates paid by all IDIs and insured credit unions;
  • Defines the “National Rate Cap” as the higher of (1) the national rate, plus 75 basis points; or (2) for maturity deposits, 120 percent of the current yield on similar maturity U.S. Treasury obligations and, for non-maturity deposits, the federal funds rate plus 75 basis points; and
  • Defines “Local Market Rate Cap” as 90 percent of the highest interest rate paid on a particular deposit product in the IDI’s local market area.

With respect to non-maturity deposits, the final rule:

  • Defines when non-maturity deposits are considered solicited or accepted for purposes of the brokered deposits and interest rate restrictions.

The final rule will become effective April 1, 2021; full compliance with the revised brokered deposit regulation is extended to January 1, 2022.

12/16/2020

Enterprise non-performing loan sales report

The Federal Housing Finance Agency has released the latest report on the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). The Enterprise Non-Performing Loan Sales Report includes sales information about NPLs sold through June 30, 2020 and reflects borrower outcomes on NPLs sold through December 31, 2019, and reported through June 30, 2020. The sale of NPLs reduces the number of delinquent loans in the Enterprises' portfolios and transfers credit risk to the private sector. The FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure. The report shows that from program inception in 2014 through June 30, 2020, the Enterprises sold 128,471 NPLs with a total unpaid principal balance of $24.1 billion. From December 31, 2015, to June 30, 2020, the number of loans one or more years delinquent held in the Enterprises’ portfolios decreased by 70 percent.

12/16/2020

Mortgage data analytics company settles FTC allegations

The FTC has announced a mortgage industry data analytics company will be required to implement a comprehensive data security program as part of a settlement resolving Federal Trade Commission allegations that the firm failed to ensure one of its vendors was adequately securing personal data about tens of thousands of mortgage holders. The complaint filed by the FTC alleged that Texas-based Ascension Data & Analytics, LLC violated the Gramm-Leach Bliley Act’s Safeguard Rule, which requires financial institutions to develop, implement, and maintain a comprehensive information security program. As part of that program, financial institutions must oversee their third-party vendors, by ensuring they are capable of implementing and maintaining appropriate safeguards for customer information, and requiring them to do so by contract.

The FTC alleged that a vendor, OpticsML, which Ascension hired to perform text recognition scanning on mortgage documents, stored the contents of the documents on a cloud-based server in plain text, without any protections to block unauthorized access, such as requiring a password or encrypting the information. The documents contained sensitive information about mortgage holders and others, such as names, dates of birth, Social Security numbers, loan information, credit and debit account numbers, drivers’ license numbers, or credit files. As a result of the inadequate security, the cloud-based server containing the mortgage data was accessed dozens of times.

12/15/2020

SBA disaster loans for AL, GA and TN

The Small Business Administration has announced Working Capital Disaster Loans are available in the following counties as the result of drought:

  • Alabama: Jackson and Madison Counties
  • Georgia: Dade County
  • Tennessee: Coffee, Franklin, Grundy, Hamilton, Lincoln, Marion, Moore, and Sequatchie Counties

12/15/2020

OFAC sanctions Iranian intel officers involved in abduction

The Treasury Department has designated two senior officials of Iran’s Ministry of Intelligence and Security (MOIS) who were involved in the abduction of Robert A. “Bob” Levinson on Iran’s Kish Island on or about March 9, 2007. Senior Iranian officials authorized Levinson’s abduction and detention and launched a disinformation campaign to deflect blame from the Iranian regime. The individuals designated today, Mohammad Baseri and Ahmad Khazai, acted in their capacity as MOIS officers in the abduction, detention, and probable death of Mr. Levinson.

For identity information on Baseri and Khazai, see BankersOnline's OFAC Update.

12/15/2020

2019 CRA data available

The OCC, Federal Reserve and FDIC have jointly announced the availability of data on small business, small farm, and community development lending reported by certain commercial banks and savings associations, in accordance with the Community Reinvestment Act.

An FFIEC disclosure statement on the reported 2019 CRA data, in electronic form, is available for each reporting commercial bank and savings association. The FFIEC also prepared aggregate disclosure statements of small business and small farm lending for all of the metropolitan statistical areas and non-metropolitan counties in the United States and its territories. These statements are available for public inspection on the FFIEC website (www.ffiec.gov/cra).

12/15/2020

Agencies issue rule on equal treatment of faith-based organizations

On Monday, the U.S. Department of Health and Human Services announced a joint final rule with eight other agencies—the Department of Justice, the Department of Homeland Security, the Department of Labor, the Department of Education, the Department of Housing and Urban Development, the Department of Agriculture, the Agency for International Development, and the Department of Veterans Affairs—to implement Executive Order No. 13831, on the Establishment of a White House Faith and Opportunity Initiative (May 3, 2018). The rule was issued to ensure that faith-based and secular organizations are treated equally in HHS-supported programs, and it clarifies that faith-based organizations do not lose their legal protections and rights just because they participate in federal programs and activities.

The rule is scheduled for Federal Register publication on Thursday, December 17, and will become effective on January 18, 2021.

12/15/2020

FEMA suspending communities in two states on Thursday

FEMA has published a notice at 85 FR 81142 in today's Federal Register identifying communities in Iowa and Wisconsin authorized for the sale of flood insurance under the National Flood Insurance Program that are now scheduled for suspension from the program on December 17 because of noncompliance with the floodplain management requirements of the program.

  • IA: Aplington, Aredale, Butler County (unincorporated areas), Clarksville, Dumont, Greene, New Hartford, Parkersburg, Sheldon, and Shell Rock.
  • WI: Argyle, Belmont, and South Wayne

FEMA's notice reminds the public that notices of scheduled suspensions will no longer be published in the Federal Register as of June 2021, but will be available at www.fema.gov.

12/15/2020

OFAC announces new sanctions list

OFAC has announced it has made a new Non-SDN Menu Based Sanctions (NS-MBS) List available. The NS-MBS is designed as a reference tool that identifies persons subject to certain non-blocking menu-based sanctions that have been imposed under statutory or other authorities, including certain sanctions described in Section 235 of the Countering America’s Adversaries Through Sanctions Act (CAATSA) and the Ukraine Freedom Support Act of 2014, as amended by CAATSA. When blocking is chosen as a menu-based sanction and imposed on a person, that person is identified solely on the OFAC SDN List. Any other menu-based sanctions imposed on that person are also identified on the SDN List.

In addition, the names of Ismail DEMIR, Mustafe Alper DENIZ, Serhat GENCOGLU, and Faruk YIGIT were added to the SDN List. For identification information, see BankersOnline's OFAC Update.

12/15/2020

NCUA Board meeting agenda

The National Credit Union Administration has published notices of meetings of its Board on December 17 and 18, 2020. On Thursday, December 17, the published agenda includes consideration of NCUA rules and regulations on:

  • Regulatory relief in response to COVID-19
  • Mortgage servicing rights
  • Overdraft policy
  • Subordinated debt

The agenda in the notice for the December 18 meeting includes consideration of:

  • NCUA's Rules and Regulations - Annual operating fee assessment
  • NCUA's 2021-2022 budget
  • Board briefing on NCUA's operating fee schedule and overhead transfer rate

The remainder of the December 18 meeting will be closed to the public.

12/15/2020

FBAR deadline extended again

FinCEN has posted Notice 2020-1 to extend yet again the filing date for certain Report of Foreign Bank and Financial Accounts (FBAR) filings.

Because a proposed rulemaking FinCEN issued on March 10, 2016, which proposes to revise the regulations implementing the Bank Secrecy Act regarding FBARs is not yet finalized, FinCEN is further extending the filing due date to April 15, 2022, for individuals whose filing due date for reporting signature authority was previously extended by Notice 2019-1. This extension applies to the reporting of signature authority held during the 2020 calendar year, as well as all reporting deadlines extended by previous Notices 2019-1, 2018-1, 2017-1, 2016-1, 2015-1, 2014-1, 2013-1, 2012-1 and 2012-2, along with Notices 2011-1 and 2011-2.

For all other individuals with an FBAR filing obligation, the filing due date remains April 15, 2021.

12/14/2020

McWilliams remarks at Federal Reserve Bank Supervision Conference

In a presentation at the Federal Reserve Board Conference on Bank Supervision: Past, Present, and Future, FDIC Chairman McWilliams discussed the steps taken by the FDIC in the last two years to improve its supervisory program. She noted the FDIC's task is really quite simple:

  • Foster a technological transformation in the industry we oversee, promoting a safe, dynamic, technology-driven marketplace for financial services;
  • Develop a more dynamic supervision model that improves FDIC effectiveness and promotes financial stability; and
  • Do it all in a manner that reduces unnecessary regulatory burden and cuts compliance costs for banks.

McWilliams said of the agency's current project to leverage technology to engage more regularly and more informally to discuss operations, understanding emerging risks, and resolve questions surrounding new products and services, “When we are successful, this system will reduce the reporting burden for institutions and the compliance costs of an annual examination, while simultaneously providing greater visibility for the FDIC into an institution's financial health and into the health of the entire financial system. And, because we are engaging more regularly, the FDIC will be able to help institutions identify and mitigate risks to financial health or consumers before they become bigger, more challenging problems.”

12/14/2020

New charts for FOMC economic projections

The Federal Reserve has released illustrative examples of new charts that will be included in the Federal Open Market Committee's quarterly Summary of Economic Projections. The new charts show FOMC participants' judgments of uncertainty and risks related to their projections of the change in real gross domestic product, the unemployment rate, personal consumption expenditures (PCE) inflation, and core PCE inflation.

The first new illustrative chart shows the proportion of participants who indicated that the uncertainty surrounding their projections for each variable was higher or lower relative to the average level of uncertainty over the past 20 years. The second new illustrative chart shows the proportion of participants who saw the risks to their projections as weighted toward the upside or downside.

12/14/2020

CFPB settles with home-alarm company

The Bureau and the Arkansas Attorney General have settled with Alder Holdings, LLC, resolving their allegations that Alder failed to provide proper notices under the Fair Credit Reporting Act. Alder is a Utah-based company that sells home-security and alarm systems, primarily door-to-door, throughout the country and has sold its products and services to over 115,000 customers. The Bureau and Arkansas filed a proposed stipulated final judgment and order in the United States District Court for the Eastern District of Arkansas. If entered by the court, the settlement would require Alder to pay a $600,000 civil money penalty, $100,000 of which will be offset if Alder pays that amount to settle related litigation with the State of Arkansas that is currently pending in state court in Arkansas. The settlement would also require Alder to provide proper notices under the FCRA.

12/14/2020

CFPB Fall 2020 rulemaking agenda

The Bureau has published its Fall 2020 Rulemaking Agenda, which lists the regulatory matters that it expects to focus on for the remainder of 2020 through the spring of 2021. Key among these are:

  • In addition to completing and publishing the October 30, 2020, final rule on debt collection, the Bureau has also engaged in testing of time-barred debt disclosures that were not the focus of the May 2019 proposal. In early 2020, after completing the testing, the Bureau published a supplemental NPRM related to time-barred debt disclosures. The Bureau expects to issue a final rule in December 2020 addressing, among other things, disclosures related to the validation notice and time-barred debt.
  • The Bureau is continuing a rulemaking to address the anticipated expiration of the LIBOR index On Monday, November 30, regulatory authorities in the UK announced that they are considering extending the availability of US$ LIBOR for legacy loan contracts until June 2023 instead of the end of 2021. In light of this development, the Bureau anticipates publishing the final rulemaking on the LIBOR transition later than the January 2021 target identified in the Unified Agenda.
  • The Bureau is participating in interagency rulemaking processes with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Housing Finance Agency to develop regulations to implement the amendments made by the Dodd-Frank Act to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) concerning appraisals. These amendments require implementing regulations for quality control standards for automated valuation models (AVMs). The Agencies will continue to develop a proposed rule to implement the Dodd-Frank Act’s AVM amendments to FIRREA.
  • The Bureau anticipates issuing an NPRM in spring 2021 to consider possible amendments to the Bureau’s mortgage servicing rules to address actions required of servicers working with borrowers affected by natural disasters or other emergencies.
  • The Bureau anticipates publishing two NPRMs in early 2021 concerning possible revisions to the 2015 Home Mortgage Disclosure Act (HMDA). One of these follows an Advance Notice of Proposed Rulemaking in May 2019 concerning certain data points that are required to be reported under the HMDA rule and coverage of certain business or commercial purpose loans, addressing concerns about regulatory burden. The second would address the public disclosure of HMDA data in light of consumer privacy interests, so that stakeholders can concurrently consider and comment on the collection and reporting of data points and public disclosure of those data points. This NPRM will follow up on the Bureau’s 2018 final policy guidance regarding disclosure of the HMDA data. (These proposed rules may not be released by the anticipated February target in the Unified Agenda.)

The Bureau has also added two new items to its long-term agenda. First, the Bureau will weigh feedback from its assessment of the TRID Rule suggesting that modifications of certain aspects of that rule make it more effective. Second, the CFPB has begun research that focuses on providing information to consumers about the costs associated with payday loans. The results of the qualitative testing will inform the Bureau in deciding whether and how to move forward with quantitative testing that might support possible future rulemaking or other actions related to payday loan disclosures.

In August 2020, the Bureau also began its review of Regulation Z rules that implement the CARD Act of 2009, with a focus on an interim final rule and three final rules published by the Federal Reserve Board from July 2009 to April 2011.

12/14/2020

Swap Margin Rule - legacy swaps

The OCC has issued Bulletin 2020-108 concerning the Joint Statement issued by the OCC and Board of Governors of the Federal Reserve System to address the ability of a covered swap entity subject to the OCC’s or Federal Reserve Board’s jurisdiction, respectively, to service the covered swap entity’s cross-border clients. The OCC and the Federal Reserve Board are issuing this statement in light of the approaching end of the transition period during which the laws of the European Union have continued to apply in the United Kingdom after the United Kingdom’s withdrawal (commonly referred to as Brexit) from the European Union. The OCC’s swap margin rule applies to certain national banks, federal savings associations, and federal branches and agencies of foreign banking organizations (collectively, banks).

The OCC expects the Joint Statement to have no impact on community banks.

12/14/2020

FDIC Board meeting tomorrow

The FDIC Board of Directors will hold an open meeting at 10:00 a.m. on Tuesday, December 15, 2020, via a and subsequently made available on-demand approximately one week after the event.

Selected items from the Summary Agenda for the meeting include—

  • Final Rule on Revising the FDIC’s Regulations Concerning Collection of Delinquent Civil Money Penalties.
  • Notice of Proposed Rulemaking on Computer-Security Incident Notification.
  • Notice of Proposed Rulemaking on Additional Exemptions to Suspicious Activity Report Requirements (12 CFR part 353).
  • Final Rules on the Removal and Rescission of Transferred OTS Regulations
  • Combined Final Rule on Brokered Deposits and Interest Rate Restrictions.
  • Final Rule on Parent Companies of Industrial Banks and Industrial Loan Companies.

12/11/2020

COVID 19-related loan flexibilities extended

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac (the Enterprises) will extend several loan origination flexibilities through January 31, 2021. The changes are to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on December 31, 2020.

Extended flexibilities include:

  • Alternative appraisals on purchase and rate term refinance loans
  • Alternative methods for documenting income and verifying employment before loan closing; and
  • Expanding the use of powers of attorney to assist with loan closings.

12/11/2020

FinCEN issues new 314(b) sharing information

In prepared remarks at the American Bankers Association/ American Bar Association Financial Crimes Enforcement Conference, Kenneth Blanco, FinCEN Director, announced that FinCEN was issuing important guidance clarifying how financial institutions may fully utilize FinCEN’s 314(b) information sharing program. A new 314(b) Fact Sheet was issued yesterday as the result of the feedback provided by financial institutions and through our own experiences at FinCEN. It is intended to clarify in greater detail the circumstances where 314(b) applies, with the hope of enhancing participation and utility of the 314(b) program. [FinCEN rescinded previously issued guidance (FIN-2009-G002) and a former administrative ruling (FIN-2012-R006) with the publication of the new Fact Sheet.]

The main themes of the 314(b) Fact Sheet are:

  • Financial institutions may share under Section 314(b) information relating to activities that they suspect may involve possible terrorist financing or money laundering. This includes, but is not limited to, information about activities they suspect involve the proceeds of a specified unlawful activity (SUA). Importantly, our guidance clarifies that:
  • Financial institutions do not need to have specific information that these activities directly relate to proceeds of an SUA, or to have identified specific proceeds of an SUA being laundered.
  • Financial institutions do not need to have made a conclusive determination that the activity is suspicious.
  • Financial institutions may share information about activities as described, even if such activities do not constitute a “transaction.” This includes, for example, an attempted transaction, or an attempt to induce others to engage in a transaction. This clarification is significant and addresses some uncertainty with sharing incidents involving possible fraud, cybercrime, and other predicate offenses when financial institutions suspect those offenses may involve terrorist acts or money laundering activities.
  • In addition, the guidance notes that there is no limitation under Section 314(b) on the sharing of personally identifiable information, or the type or medium of information that can be shared (to include sharing information verbally).
  • An entity that is not itself a financial institution under the Bank Secrecy Act may form and operate an association of financial institutions whose members share information under Section 314(b). Notably, this includes compliance service providers.
  • An unincorporated association governed by a contract among the group of financial institutions that constitutes its members may engage in information sharing under Section 314(b).

Director Blanco also discussed FinCEN’s COVID-19 Response, Expansion of Rapid Response Program, Guidance to Financial Institutions, FinCEN Advisories, Medical Fraud, Imposter Scams and Money Mules, Cybercrime and Cyber-Enabled Crime , Unemployment Insurance Fraud, Charities Fact Sheet, COVID-related SAR Filings, Rulemakings, and Stakeholder Engagement.

12/11/2020

HUD awards $46M for vets housing assistance

HUD yesterday announced it is awarding $46 million in rental assistance and housing vouchers to help veterans at risk of experiencing homelessness. The supportive housing assistance is provided through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) Program, which combines rental assistance from HUD with case management and clinical services provided by the VA.

12/11/2020

Payment processor and CEO pay $1.5M for consumer fraud

The Federal Trade Commission has announced that Complete Merchant Solutions, LLC (CMS) and its former CEO, Jack Wilson, have settled charges that they illegally processed millions of dollars in consumer credit card payments for fraudulent schemes when they knew or should have known that the schemes were defrauding consumers. Those schemes include Apply Knowledge and Tarr, which were ultimately shut down by an FTC enforcement action, and USFIA, which was shut down following an enforcement action by the U.S. Securities and Exchange Commission.

The FTC alleges that CMS and Wilson ignored clear red flags of illegal conduct by those schemes, such as high rates of consumer chargebacks, use of multiple merchant accounts to artificially reduce chargeback rates so as to evade detection by banks and the credit card associations, submission of sham chargeback reduction plans, and the use of merchant accounts to process payments for products and services for which the merchant did not get approval from the bank holding the accounts.

The proposed order requires CMS and Wilson to pay $1.5 million to the FTC for use in providing refunds to harmed consumers. In addition, among other restrictions, CMS and Wilson are banned from acting as a payment processor for any companies that offer “free trials” for nutraceutical products, and prohibited from engaging in credit card laundering and helping clients evade fraud monitoring programs established by financial institutions.

12/11/2020

Bureau issues two final QM rules

The Consumer Financial Protection Bureau has issued two final rules related to qualified mortgage (QM) loans. The first final rule, the General QM Final Rule, replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43 percent with a limit based on the loan’s pricing. In the second final rule issued today, the Bureau creates a new category for QMs, Seasoned QMs.

Under the General QM Final Rule, a loan receives a conclusive presumption that the consumer had the ability to repay if the annual percentage rate does not exceed the average prime offer rate for a comparable transaction by 1.5 percentage points or more as of the date the interest rate is set. A loan receives a rebuttable presumption that the consumer had the ability to repay if the annual percentage rate exceeds the average prime offer rate for a comparable transaction by 1.5 percentage points or more but by less than 2.25 percentage points. In addition, the General QM Final Rule:

  • Provides higher pricing thresholds for loans with smaller loan amounts, for certain manufactured housing loans, and for subordinate-lien transactions.
  • Retains the General QM loan definition’s existing product-feature and underwriting requirements and limits on points and fees.
  • Requires lenders to consider a consumer’s DTI ratio or residual income, income or assets other than the value of the dwelling, and debts and removes appendix Q and provides more flexible options for creditors to verify the consumer’s income or assets other than the value of the dwelling and the consumer’s debts for QM loans.

The Seasoned QM Final Rule creates a new category of Seasoned QMs for first-lien, fixed-rate covered transactions that have met certain performance requirements, are held in portfolio by the originating creditor or first purchaser for a 36-month period, comply with general restrictions on product features and points and fees, and meet certain underwriting requirements. To be eligible to become a Seasoned QM, a loan must be a first-lien, fixed-rate loan with no balloon payments and must meet certain other product restrictions. As under the General QM Final Rule, the creditor must also consider the consumer’s DTI ratio or residual income, income or assets other than the value of the dwelling, and debts and verify the consumer’s income or assets other than the value of the dwelling and the consumer’s debts. The loan can have no more than two delinquencies of 30 or more days and no delinquencies of 60 or more days at the end of the seasoning period. The creditor or first purchaser also generally must hold the loan in portfolio until the end of the seasoning period.

These final rules will take effect 60 days after publication in the Federal Register. The General QM Final Rule will have a mandatory compliance date of July 1, 2021. Between the General QM Final Rule’s effective date and mandatory compliance date, there will be an optional early compliance period during which creditors will be able to use either the current General QM definition or the revised General QM definition. The Seasoned QM Final Rule will apply to covered transactions for which creditors receive an application on or after the effective date.

  • PUBLICATION AND EFFECTIVE DATE UPDATE: These rules were published at 85 FR 86308 (General Qualified Loan Definition) and 85 FR 86402 (Seasoned Qualified Mortgage Loan Definition) on December 29, 2020. Both rules become effective March 1, 2021.

12/11/2020

OFAC targets more human rights abusers

Yesterday, OFAC targeted perpetrators of serious human rights abuse across several countries in the Western Hemisphere, Middle East, and Eurasia. Yesterday’s actions were taken under Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act, and targets perpetrators of serious human rights abuse and corruption. OFAC also designated one Yemeni individual pursuant to E.O. 13611, “Blocking Property of Persons Threatening the Peace, Security, or Stability of Yemen.”

For information on the individuals and entities OFAC designated in these actions, see BankersOnline's OFAC Update.

12/10/2020

NCUA enhances fraud hotline

The National Credit Union Administration (NCUA) has announced several enhancements to its Fraud Hotline, which allows the public to report insider fraud concerns associated with credit union employees, directors, or volunteers to the NCUA. With these improvements, fraud tips can now be submitted electronically through the NCUA’s website. Individuals can remain anonymous or provide contact information for appropriate agency staff to discuss their fraud concerns. The new form also allows for a description of the fraud and other critical information to assist in the evaluation of the reported concerns.

The NCUA encourages anyone that suspects or is aware of insider fraud at a federally insured credit union to report the information as soon as possible. Swift reporting minimizes risks, exposures, and losses, while supporting appropriate supervisory or administrative action against those that commit fraud or misuse their position.

12/10/2020

Facebook sued by FTC

The Federal Trade Commission has filed a lawsuit against Facebook, alleging that the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct. Following a lengthy investigation in cooperation with a coalition of attorneys general of 46 states, the District of Columbia, and Guam, the Commission's complaint alleges that Facebook has engaged in a systematic strategy—including its 2012 acquisition of up-and-coming rival Instagram, its 2014 acquisition of the mobile messaging app WhatsApp, and the imposition of anticompetitive conditions on software developers—to eliminate threats to its monopoly. The FTC alleges that Facebook's course of conduct harms competition, leaves consumers with few choices for personal social networking, and deprives advertisers of the benefits of competition.

The FTC is seeking a permanent injunction in federal court that could, among other things: require divestitures of assets, including Instagram and WhatsApp; prohibit Facebook from imposing anticompetitive conditions on software developers; and require Facebook to seek prior notice and approval for future mergers and acquisitions.

12/10/2020

OFAC targets corrupt actors on International Anti-Corruption Day

On Wednesday, International Anti-Corruption Day, OFAC targeted corrupt actors and their networks across several countries in Africa and Asia. OFAC's actions were taken in accordance with Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act, and targets perpetrators of corruption and serious human rights abuse. For names and identification information on three individuals and three entities targeted by OFAC's action, see BankersOnline's OFAC Update.

12/10/2020

Bureau sues debt collector BounceBack, Inc.

The Consumer Financial Protection Bureau has sued BounceBack, Inc.. a Kansas City, Missouri-based operator of bad-check pretrial-diversion programs on behalf of more than 90 district attorneys' offices throughout the country. The Bureau alleges that in the course of implementing this program, BounceBack violated the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act of 2010 (CFPA). The Bureau’s complaint seeks injunctions against BounceBack, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of a civil money penalty.

The Bureau's complaint alleges that since at least 2015, in the course of administering these bad-check pretrial-diversion programs, BounceBack used district-attorney letterheads to threaten more than 19,000 consumers with prosecution if they did not pay the amount of the check, enroll and pay for a financial-education course, and pay various other fees. BounceBack failed to—

  • reveal to consumers that BounceBack—and not district attorneys—sent the letters
  • reveal that district attorneys almost never prosecuted these cases, even when consumers ignored BounceBack’s threats. In fact, in most cases, BounceBack did not refer cases for prosecution, even if the check writer failed to respond to its collection letter.
  • include disclosures required under the FDCPA.

The Bureau alleges that BounceBack’s conduct violated the FDCPA, was deceptive under both the FDCPA and the CFPA, and that its violations of the FDCPA constituted violations of the CFPA.

12/10/2020

Agencies resolution plans actions announced

A joint press release from the Federal Reserve Board and FDIC has announced several resolution plan actions. Resolution plans, commonly known as living wills, must describe a financial company's strategy for rapid and orderly resolution in bankruptcy in the event of material financial distress or failure of the company.

First, the agencies confirmed that weaknesses previously identified in the resolution plans for several large foreign banks—Barclays, Credit Suisse, Deutsche Bank, and UBS—have been remediated.

Second, the agencies finalized guidance for the resolution plans of certain large foreign banks. The final guidance modifies the proposed guidance, which was issued in March of this year, in several ways. The agencies tailored their expectations around resolution capital and liquidity, derivatives and trading activity, as well as payment, clearing, and settlement activities. The scope of the guidance was also modified to generally cover foreign banks in category II of the agencies' large bank regulatory framework. As a result, the guidance will apply to the 2021 resolution plans from Barclays, Credit Suisse, and Deutsche Bank, and also to MUFG (Mitsubishi UFJ Financial Group) for its full plan due in 2024.

And third, the agencies provided information for large foreign and domestic banks that will inform the content of their next resolution plans, which now are due December 17, 2021. In particular, these targeted plans will be required to include core elements of a firm's resolution strategy—such as capital, liquidity, and recapitalization strategies—as well as how each firm has integrated changes to and lessons learned from its response to the coronavirus into its resolution planning process. The information applies to foreign and domestic banks in categories II and III of the large bank regulatory framework.

  • Federal Register notice: Guidance for Resolution Plan Submissions of Certain Foreign-Based Covered Companies
  • List of 15 Domestic and Foreign Banks Required to Submit Next Resolution Plans by December 17, 2021

12/10/2020

NMLS annual conference

Registration for the 2021 NMLS Annual Conference & Training is now open. It will be held online from February 23-26, 2021, 1:00-5:00 p.m. ET.

12/09/2020

Tips for avoiding COVID-19 vaccine scams

The Federal Trade Commission yesterday issued a new consumer education blog post with the National Association of Attorneys General, offering tips on how to recognize and avoid vaccine-related scams. According to the post, with COVID-19 vaccines in the pipeline, scammers will not be far behind, and people should recognize the red flags of potential scams. The post notes that:

  • reports about the release of COVID-19 vaccines in the U.S. by the end of the year are promising, but distribution plans are still being worked out;
  • while we wait for a timeline and more information, people need to be wary of pitchmen claiming to have vaccine doses for sale; and
  • for most people living in the U.S., state agencies—not individuals—will be responsible for implementing vaccine distribution plans.

12/09/2020

SEC orders BlueCrest to pay $170M to fund investors

The Securities and Exchange Commission has announced it has issued a consent order to UK-based investment adviser BlueCrest Capital Management Limited, which has agreed to pay $170 million to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of top traders from its flagship client fund, BlueCrest Capital International. to a proprietary fund, BSMA Limited, and replacement of those traders with an underperforming algorithm. The SEC will distribute the $170 million to harmed investors.

12/09/2020

Debt collector settles with Bureau

The Consumer Financial Protection Bureau has issued a consent order against RAB Performance Recoveries, LLC (RAB) for threatening to sue and suing consumers to collect debts where it did not have a legally required license to do so. Therefore, RAB was not legally entitled to take the actions that it threatened to take against consumers in those states. The Bureau found that RAB misrepresented that it had a legally enforceable right to recover payments from consumers in these states through the judicial process in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act of 2010 (CFPA).

The consent order prohibits RAB from collecting on the judgments against, or payment agreements from, consumers it obtained in Connecticut, New Jersey, and Rhode Island when RAB did not hold a required debt-collection license in those states. It also requires RAB to take all necessary steps to vacate those judgments and suspend collection of those judgments and to notify consumers with payment agreements that they have been satisfied. The consent order also requires RAB to pay a $204,000 civil money penalty.

12/09/2020

OFAC actions on Tuesday

Treasury has announced that OFAC has designated Hasan Irlu, an official in Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Iranian regime’s envoy to the Houthi rebels in Yemen, for acting for or on behalf of the IRGC-QF. OFAC also took action against Iran’s Al-Mustafa International University for facilitating IRGC-QF recruitment efforts and one individual, Yusuf Ali Muraj, who supported the terrorist group’s operations.

Treasury also announced that OFAC designated six entities and identified four vessels related to the transport of North Korean coal.

For identification details on the designated individuals, entities, and vessels, see BankersOnline's OFAC Update

12/09/2020

NCUA Board 2021 meeting schedule

The National Credit Union Administration Board has released its monthly meeting schedule for 2021. Open Board meetings are scheduled to begin at 10 a.m. ET on these dates:

  • January 14
  • February 18
  • March 18
  • April 22
  • May 20
  • June 24
  • July 22
  • September 23
  • October 21
  • November 18
  • December 16

No meeting is scheduled for August, and the meeting schedule is subject to change.

12/08/2020

Mnuchin hosts COVID discussion with world finance leaders

Treasury Secretary Mnuchin hosted a meeting yesterday on economic recovery from the pandemic with finance ministers and central bank governors from Canada, France, Germany, Italy, Japan, the United Kingdom, the European Commission, and the Eurogroup. The heads of the IMF, World Bank, and Financial Stability Board also joined the discussion. This is the 12th G7 meeting that the Secretary has chaired this year related to the pandemic response.

The ministers and governors discussed domestic and international economic responses underway and strategies to achieve a robust recovery throughout the global economy. They also discussed ongoing responses to the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities. There is strong support across the G7 on the need to regulate digital currencies. Ministers and Governors reiterated support for the G7 joint statement on digital payments issued in October.

12/08/2020

California wildfire disaster relief webinar today

The FDIC and Federal Reserve Bank of San Francisco will be presenting a Northern California Banker Wildfire Disaster Relief webinar today, December 8, 2020, from 10:00 a.m. to 12:00 p.m. PST, to share information about available emergency funding and resources. They will also discuss opportunities to collaborate in community development activities to expand the distribution of aid to Low-to-Moderate (LMI) individuals and small businesses affected by the recent wildfires.

12/08/2020

FDIC releases three Outstanding CRA evaluations

The FDIC has released a list of 58 banks recently examined for compliance with the Community Reinvestment Act. Of the banks listed, 54 received a Satisfactory rating for their evaluations. A bank in North Dakota received a "Substantial Noncompliance" rating.

We congratulate these three banks, whose evaluations were rated Outstanding:

12/08/2020

NCUA names first Ethics Counsel

The National Credit Union Administration has announced the selection of Elizabeth J. Fischmann as the agency’s first Chief Ethics Counsel, effective December 21. In this new role, Fischmann will oversee the Office of Ethics Counsel that will certify the agency’s compliance with relevant federal ethics laws and regulations, promote accountability and ethical conduct, and help ensure the success of the NCUA’s ethics programs, including programs designed to prevent harassment and misconduct in the workplace. She will report directly to the NCUA Board and will be supervised by the NCUA Chairman.

12/08/2020

Two added to OCC Executive Committee

The OCC has announced the appointment of two executives to the agency’s Executive Committee:

  • Sydney Menefee has been selected to fill the Senior Deputy Comptroller for Midsize and Community Bank Supervision position on a permanent basis,
  • Greg Coleman will become the next Senior Deputy Comptroller for Large Bank Supervision.

As Senior Deputy Comptroller for Midsize and Community Banks, Ms. Menefee will lead a team of 1,600 people in the supervision of more than 1,000 national banks and federal savings associations. In addition to being a member of the OCC's Executive Committee, she will serve on its Committee on Bank Supervision.

As Senior Deputy Comptroller for Large Bank Supervision, Mr. Coleman will direct nearly 800 employees in overseeing the country's largest and most complex national banks and federal branches and agencies, which hold more than $10 trillion in total consolidated assets. He will also serve as a member of the agency's Executive Committee and the Committee on Bank Supervision.

12/08/2020

Nationstar Mortgage settles with CFPB and states

The Consumer Financial Protection Bureau has announced it has filed a complaint and proposed stipulated judgment and order against Nationstar Mortgage, LLC, which does business as Mr. Cooper. The Bureau’s action is part of a coordinated effort between the Bureau, a multistate group of state attorneys general, and state bank regulators.

Nationstar is one of the nation’s largest mortgage servicers and the largest non-bank mortgage servicer in the United States. The Bureau alleges that Nationstar violated multiple federal consumer financial laws, causing substantial harm to the borrowers whose mortgage loans it serviced, including distressed homeowners. In its complaint, the Bureau alleges that Nationstar engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010, violated the Real Estate Settlement Procedures Act, and violated the Homeowner’s Protection Act of 1998. Specifically, the Bureau alleges that between January 2012 and January 1, 2016, in numerous instances Nationstar—

  • failed to identify loans on its systems that had pending loss-mitigation applications or trial-modification plans, and as a result failed to honor borrowers’ loan modification agreements
  • foreclosed on borrowers to whom it had promised it would not foreclose while their loss mitigation applications were pending
  • improperly increased borrowers’ permanent, modified monthly loan payments
  • misrepresented to borrowers when they would be eligible to have their private mortgage insurance premiums canceled
  • failed to timely remove private mortgage insurance from borrowers’ accounts
  • failed to timely disburse borrowers’ tax payments from their escrow accounts
  • failed to properly conduct escrow analyses for borrowers during their Chapter 13 bankruptcy proceedings

The proposed judgment and order, if entered by the court, would require Nationstar to pay approximately $73 million in redress to more than 40,000 harmed borrowers. It would also require Nationstar to pay a $1.5 million civil penalty to the Bureau. Attorneys general from all 50 states and the District of Columbia and bank regulators from 53 jurisdictions covering 48 states and Puerto Rico, the Virgin Islands, and the District of Columbia have also settled with Nationstar today and their settlements are reflected in separate actions, concurrently filed in the United States District Court for the District of Columbia.

The Bureau’s and states’ proposed judgments and orders, if entered by the court, will yield nearly $85 million in recoveries for consumers to date and over $6 million more in fees and penalties. They are also part of a larger government effort, which also includes assistance from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the United States Trustee Program, to address Nationstar’s alleged unlawful mortgage loan servicing practices.

Pages

Training View All

Penalties View All

Search Top Stories