Find Top Stories by Day or Week

The FDIC has issued a notice that an item has been added to the previously announced agenda for the April 26, 2016, meeting of the FDIC Board:

• Memorandum and resolution re: Notice of Proposed Rulemaking to Implement Liquidity Risk Standards for Certain FDIC Supervised Institutions.

The video of the March 2016 NCUA Board meeting is available online.

The Bureau has announced upgrades to its consumerfinance.gov site to help users quickly and easily browse the information, tools, and reports that the Bureau provides. Examples of the improvements are provided in the announcement.

The Federal Emergency Management Agency has published in this morning's Federal Register a final rule [81 FR 24033] to identify communities in Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on June 2, 2016, for noncompliance with the floodplain management requirements of the program.

FEMA has published in today's Federal Register a correction of its March 30, 2016, final rule suspending communities in Colorado, Virginia and Wisconsin from the Flood Insurance Program. See our March 30 Top Story for more information.

OFAC has announced the update of its frequently asked questions (FAQs) regarding Cuba with new FAQs #62, 63, 67, 68, 80, 81, 93, and 97.

The Federal Housing Finance Agency (FHFA) has released its February House Price Index (HPI). U.S. house prices rose in February, up 0.4 percent on a seasonally adjusted basis from January, The previously reported 0.5 percent increase in January was revised downward to reflect a 0.4 percent increase. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From February 2015 to February 2016, house prices were up 5.6 percent. The index levels since October 2015 have exceeded the prior peak level from March 2007. For detailed information on the monthly HPI, see the HPI FAQs. Complete historical data can be found on the HPI Data page.

The appointment of Matthew J. Eichner as director of the Division of Reserve Bank Operations and Payment Systems has been announced by the Federal Reserve Board. As division director, Mr. Eichner will be responsible for the division's oversight of:

• Federal Reserve Banks' operations
• The development of regulations and policies governing payment, clearing, and settlement systems
• The supervision of systemically important financial market infrastructures
• Carrying out the Board's responsibilities as issuance authority for U.S. currency
• Fostering improvements to the efficiency and integrity of the U.S. payments system more broadly; and the division's research program focused on a variety of payment, clearing, and settlement topics.

In a presentation to the participants at the Eurofi High Level Seminar 2016 in Amsterdam, The Netherlands, Chairman Gruenberg discussed the significant progress that has been made to foster cross-border cooperation among the major jurisdictions of the world on the resolution of systemically important financial institutions, as well as the work of the FDIC on this critically important issue. He noted that in the United States, provisions of the Dodd-Frank Act provided essential new authorities to manage the orderly failure of a systemically important financial institution. The Chairman also discussed the FDIC’s role as an insurer of deposits held in the U.S. banking system.

The CFPB has announced its filing of complaints in federal court against two co-founders of a company that resold loan applications containing sensitive personal data to lenders and data brokers without assessing the sources of those leads or the purchasers they sold to. In the complaints the CFPB alleges that Dmitry Fomichev and Davit Gasparyan (also known as David Gasparyan) co-founded and operated T3Leads, a lead aggregator that bought and sold payday and installment loan applications without properly vetting buyers and sellers. The CFPB filed a separate lawsuit against T3Leads and two other individuals in December 2015.

Treasury has announced the allocation of the final $1 billion in funds under the Hardest Hit Fund (HHF). Thirteen of the 19 participating HHF states will receive additional funds, which were allocated through a competitive application process. In order to qualify for funds in this phase, state housing finance agencies (HFAs) were required to submit detailed applications that demonstrated an ongoing need for additional funding to prevent foreclosures and stabilize housing markets, and lay out a reasonable plan of action to address those needs and fully utilize the funds by December 31, 2020. The Department also posted FAQs with additional information on the HHF allocations.

Treasury Secretary Lew has announced plans for the new $20, $10 and $5 notes, with the portrait of Harriet Tubman to be featured on the front of the new $20. The reverse of the new $10 will feature an image of the historic march for suffrage that ended on the steps of the Treasury Department and honor the leaders of the suffrage movement—Lucretia Mott, Sojourner Truth, Susan B. Anthony, Elizabeth Cady Stanton, and Alice Paul. The front of the new $10 note will maintain the portrait of Alexander Hamilton. The reverse of the new $5 will honor events at the Lincoln Memorial that helped to shape our history and our democracy and prominent individuals involved in those events, including Marian Anderson, Eleanor Roosevelt and Martin Luther King Jr. The reverse of the new $20 will feature images of the White House and President Andrew Jackson. Federal Reserve Chair Yellen also issued a statement on the redesign of the currency. The first of the newly designed notes should enter circulation in 2020.

A letter from the Federal Reserve Bank of Atlanta has been sent to Sixth District financial institutions concerning preparations for the upcoming hurricane season and emergency contact information.

The start times for the three FTC Fall Technology Series seminars will be at 1 p.m. ET at the FTC's Constitution Center offices, at 400 7th Street, SW, Washington, DC. The topics will include:

• Ransomware – September 7 – computer malware by which hackers remotely encrypt consumers' and businesses' valuable files and demand a ransom payment for the key to decrypt the information.
• Drones – October 13 – unmanned aerial vehicles that have both enormous potential commercial benefits and similarly significant privacy implications.
• Smart TV – December 7 – the advent of web-style tracking and analytics in television, which allows advertisers and content producers to monitor consumers' viewing habits in unexpected ways.

The CFPB has reported that research indicates online payday loans, also known as "cash advances" or "check loans," can offer quick access to money. A CFPB report found that attempts by online lenders to debit payments from a consumer’s checking account add a steep, hidden cost to online payday loans. Half of online borrowers rack up an average of $185 in bank penalties because at least one debit attempt overdrafts or fails. Further, one third of those borrowers who get hit with a bank penalty wind up having their accounts closed involuntarily. The study also found that despite this high cost to consumers, lenders' repeated debit attempts typically fail to collect payments. The Bureau also released prepared remarks from Director Cordray on the report.

The Bureau will hold an arbitration field hearing in Albuquerque, New Mexico, on May 5 beginning at 11 a.m. The hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. The event will be streamed on the Bureau Blog.

Under a new Executive Order, OFAC has announced the sanctioning of Khalifa Ghweil, who claims to be the Prime Minister and Defense Minister of the “National Salvation Government,” which is aligned with the unrecognized Libyan General National Congress. See our OFAC Update for more information.

The Federal Reserve Board and the California Department of Business Oversight have announced the issuance of a cease and desist order to Commercewest Bank, Irving, California, due to an examination that identified significant deficiencies in its risk management and compliance relating to anti-money laundering including the Bank Secrecy Act.

The Federal Reserve Board has issued SR Letter 16-8 to announce the implementation of new procedures for examiners to conduct off-site loan reviews for community and small regional banks. The option is offered as part of an ongoing effort to improve efficiency and provide burden reduction while maintaining quality supervision. State member banks and U.S. branches and agencies for foreign banking organizations with less than $50 billion in total assets can opt to allow Federal Reserve examiners to review loan files off-site, during both full-scope or target examinations, so long as loan documents can be sent securely and with the required information. While some banks may prefer an off-site loan review, the program is optional so that any bank can still choose an on-site review.

HUD and the Census Bureau have released the new residential construction statistics for March 2016.

• Privately owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,086,000; 7.7 percent below the revised February rate, but 4.6 percent above the March 2015 estimate. Single-family authorizations in March were at a rate of 727,000;1.2 percent below the revised February figure of 736,000.
• Privately owned housing starts in March were at a seasonally adjusted annual rate of 1,089,000; 8.8 percent below the revised February estimate of 1,194,000, but 14.2 percent above the March 2015 rate. Single-family housing starts in March were at a rate of 764,000; 9.2 percent below the revised February figure.
• Privately owned housing completions in March were at a seasonally adjusted annual rate of 1,061,000; 3.5 percent above the revised February estimate of 1,025,000 and 31.6 percent above the March 2015 rate. Single-family housing completions in March were at a rate of 734,000; 0.3 percent below the revised February rate.

The NCUA has announced the selection of Cherie Freed as Regional Director of the agency's Region V office in Tempe, Arizona. Freed will be replacing current Regional Director Elizabeth Whitehead, who will retire in May. Region V covers Alaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Oregon, Utah and Washington.

The April 2016 issue of The NCUA Report has been posted, featuring the recent changes made by the Department of Defense that will extend the protections of the Military Lending Act to a broader range of closed-end and open-end credit union products.

The OCC has released a list of recent enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. Three Civil Money Penalty (CMP) orders were issued, one personal cease and desist order issued, four individual removal/prohibition orders issued, and two restitution orders issued. One of the CMP orders, for the payment of $35 million, was issued to HSBC Bank USA, McLean Virginia, and previously reported in our April 14 Top Story. Another of the CMP orders, for the payment of $2,500, was directed to the former chief compliance officer who also held the title of chief risk officer of Gibraltar Private Bank and Trust Company ("Gibraltar"), Coral Gables, Florida. See "Former compliance officer pays $2,500 CMP" for details. Gibraltar was previously issued a $4M CMP reported in a February 26 Top Story. And the third, for the payment of $100,000 each, was issued to the former director/chief credit officer and the former director/chief operations officer of Valley Capital Bank, Mesa, Arizona. The former officers were also issued orders of prohibition prohibiting them from participating in any manner in the conduct of the affairs of any federally insured financial institution.

The April 2016 issue of FedFlash has been posted, with topics including the availability of the revised Deposit Visual Reference Guide, an update to the cash letter forms page, the return ratio report, the addition of ACH risk mitigation enhancements, and how to receive messages with attachments in the My Messages mailbox.

The record of the April 8, 2016, meeting of the Community Depository Institutions Advisory Council (CDIAC) has been released by the Federal Reserve Board.

The Department of Housing and Urban Development has announced that existing agreements under HUD’s Moving to Work (MTW) Demonstration Program for 39 public housing authorities will now continue in effect until 2028.

Treasury Secretary Lew issued prepared remarks at the Spring Meetings of the IMF-World Bank and a statement for the International Monetary and Financial Committee meeting.

The Federal Reserve has released the March 2016 G.17 Industrial Production and Capacity Utilization Report. Industrial production decreased 0.6 percent in March for a second month in a row. For the first quarter as a whole, industrial production fell at an annual rate of 2.2 percent. A substantial portion of the overall decrease in March resulted from declines in the indexes for mining and utilities, which fell 2.9 percent and 1.2 percent, respectively; in addition, manufacturing output fell 0.3 percent. The sizable decrease in mining production continued the industry's recent downward trajectory; the index has fallen in each of the past seven months, at an average pace of 1.6 percent per month. At 103.4 percent of its 2012 average, total industrial production in March was 2.0 percent below its year-earlier level. Capacity utilization for the industrial sector decreased 0.5 percentage point in March to 74.8 percent, a rate that is 5.2 percentage points below its long-run (1972–2015) average.

The NCUA has announced it will receive $69.8 million from UBS in damages and interest for claims arising from losses to Members United and Southwest, two corporate credit unions that failed during the financial crisis, related to purchases of residential mortgage-backed securities. As liquidating agent for Members United and Southwest, the NCUA Board initiated litigation against UBS. UBS will also be liable for attorneys' fees and expenses in an amount to be determined.

The Department of Housing and Urban Development has announced it is charging landlords in Beloit, Kansas, with violating the Fair Housing Act after allegedly discriminating against a female tenant with disabilities by not renewing her lease, sending her a notice containing discriminatory statements about her disability, and retaliating against her for filing a previous fair housing complaint.

The Financial Stability Oversight Council (FSOC) has released a statement providing a public update on its review of potential risks to U.S. financial stability that may arise from asset management products and activities. The statement details the Council’s views regarding potential financial stability risks and next steps to respond to these potential risks. The Council’s evaluation of risks focused on: (1) liquidity and redemption; (2) leverage; (3) operational functions; (4) securities lending; and (5) resolvability and transition planning. Remarks by Treasury Secretary Lew prepared for delivery at the FSOC meeting were also released.

The Office of Foreign Assets Control has announced its publication of Hizballah-related sanctions regulations, effective as of publication on April 15, 2016. OFAC also included it its announcement a number of SDN List entries (individuals and entities) that it is updating to indicate they are subject to secondary sanctions under the new regulations. See our April 15 OFAC Update for more information.

The OCC has issued an alert concerning counterfeit cashier's checks purporting to be issued by Pioneer Bank, Roswell, New Mexico. Details from the OCC's alert can be found in our April 15, 2016, Alert.

The former president of an Oklahoma bank has agreed to a Federal Reserve Board Consent Order to Cease and Desist and to make restitution to the bank of $6,600. See our Penalties page for more information.

The Federal Housing Finance Agency (FHFA) has announced that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac will offer principal reduction modifications to certain seriously delinquent, underwater borrowers who are still struggling in the aftermath of the financial crisis to help them avoid foreclosure and stay in their homes. The new Principal Reduction Modification program is a one-time offering for borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac and who meet specific eligibility criteria. The modification will be available to owner-occupant borrowers who are 90 days or more delinquent as of March 1, 2016, whose mortgages have an outstanding unpaid principal balance of $250,000 or less, and whose mark-to-market loan-to-value (MTMLTV) ratios exceed 115 percent. See a Fact Sheet for eligibility criteria.

The NCUA has announced it will receive $50.3 million in damages and interest from Credit Suisse for claims arising from losses to Members United and Southwest corporate credit unions related to purchases of residential mortgage-backed securities. The NCUA Board initiated litigation as liquidating agent for the failed corporate credit unions. Last month, the NCUA accepted Credit Suisse's offer of judgment of $29 million in damages (see our March 25 story). With the addition of prejudgment interest determined by the Court, the amount to be paid by Credit Suisse increased to $50.3 million. Credit Suisse will also be liable for attorneys' fees and expenses in an amount to be determined.

The Federal Trade Commission will host a forum on June 9 exploring the growing world of marketplace lending and its implications for consumers. This forum is the first in a series of Commission events looking at consumer protection across different areas of emerging financial technology.

A live twitter chat will be hosted by the National Credit Union Administration to help consumers protect their money and personal information from consumer financial fraud. The chat is scheduled for April 27, beginning at 11 a.m. EDT. Credit unions and consumers can follow @MyCUgov and contribute to the conversation using the #NCUAChat hashtag on Twitter.

The OCC will host a public meeting in Washington of the Mutual Savings Association Advisory Committee (MSAAC) on May 3, 2016, beginning at 8:30 a.m. EDT. The purpose of the meeting is to advise the OCC on regulatory changes or other steps the OCC may be able to take to ensure the continued health and viability of mutual savings associations and other issues of concern to mutual savings associations.

The Office of the Comptroller of the Currency (OCC) has announced the selection of Donna Murphy to be Deputy Comptroller for Compliance Risk. She will oversee development of policy and examination procedures relating to consumer, Bank Secrecy Act and anti-money laundering, and Community Reinvestment Act issues. Ms. Murphy will also serve as a key advisor to the Committee on Bank Supervision and to the Comptroller of the Currency on compliance and CRA matters. Her appointment is effective May 1.