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!


Top Stories

12/04/2020

Members of Fed IPAC announced

The Federal Reserve Board of Governors has announced seven members, including three new members, of its Insurance Policy Advisory Committee, or IPAC. The members will serve three-year terms beginning in 2021.The IPAC, which was established by the Economic Growth, Regulatory Relief, and Consumer Protection Act, provides information, advice, and recommendations to the Board on domestic and international insurance issues. New members include:

  • Shweta Jhanji, Senior Vice President, Treasurer, Ameriprise Financial
  • Bryan Pickel, Vice President & Head, International Regulatory Affairs, Prudential Financial
  • Sarah Williams, Managing Director, Head of Enterprise Risk Management, Global Atlantic Financial Company

Re-appointed members:

  • John Bruno, Executive Vice President, General Counsel, Secretary & Chief Human Resources Officer, The Auto Club Group
  • Bridget Hagan, Partner, Head of Insurance Practice Group, Mindset
  • Aaron Sarfatti, Chief Risk Officer, AXA Equitable Life
  • Halina von dem Hagen, Global Treasurer and Head of Capital Management, Manulife

12/04/2020

Project REACh minority depository institution pledge released

The OCC has announced the release of the Project REACh Minority Depository Institution (MDI) Pledge. Acting Comptroller of the Currency Brian P. Brooks encouraged all large and midsize banks to consider the pledge to develop meaningful partnerships with MDIs to help them remain a vibrant part of the economic landscape and better promote fair, equal, and full access to financial products and services in their communities. The following banks who are members of Project REACh were the first to sign on - Citibank, Flagstar, Huntington, Texas Capital and Wells Fargo.

12/04/2020

NCUA proposes removal of ban on interest capitalization

The National Credit Union Administration Board has published [85 FR 78269] a proposed rule for comment that would amend its regulations at 12 CFR 741 by removing the prohibition on the capitalization of interest in connection with loan workouts and modifications. The Board has determined that the current prohibition on authorizing additional advances to finance unpaid interest may be overly burdensome and, in some cases, hamper a federally insured credit union's (FICU's) good-faith efforts to engage in loan workouts with borrowers facing difficulty because of the economic disruption that the COVID-19 pandemic has caused.

Comments on the proposal will be accepted through February 2, 2021.

12/04/2020

SEC IAC members announced

The Securities and Exchange Commission has announced the appointment of eight new members to its Investor Advisory Committee which was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act to, among other things, advise the Commission on regulatory priorities, regulation of securities products, trading strategies, fee structures, disclosure effectiveness, and initiatives to help protect investors and promote investor confidence and the integrity of the U.S. securities markets. The new members of the IAC are:

  • Jamila A. Abston, Partner, Ernst & Young LLP
  • Brian A. Hellmer, Managing Director, Global Public Market Strategies at State of Wisconsin Investment Board
  • Sandra J. Peters, Senior Head, Global Financial Reporting Policy, CFA Institute
  • Paul Sommerstad, Partner, Cerity Partners
  • Alice Stinebaugh, Social Studies Department Chair, Parkland School District, and Adjunct Instructor in Economics, University of Scranton
  • Joanne Yoo, Managing Director, Development Partners International
  • Leslie Van Buskirk, Administrator, Division of Securities at State of Wisconsin Department of Financial Institutions, who replaces Craig Goettsch, Director of Investor Education and Consumer Outreach, Iowa Insurance Division, as the statutory representative of state securities commissions

12/04/2020

Waller approved for Fed Board seat

The Senate yesterday approved the nomination of Christopher Waller, currently the director of research at the Federal Reserve Bank of St. Louis, to serve on the Federal Reserve’s Board of Governors. He will serve a term that extends until January 2030.

12/03/2020

FHA 2021 single family home limits announced

The Federal Housing Administration has announced the agency's new schedule of loan limits for calendar year 2021 for its Single Family Title II forward and Home Equity Conversion (reverse) Mortgage (HECM) insurance programs. Loan limits for most of the country will increase in the coming year due to robust house price appreciation, which is factored into the statutorily mandated calculations FHA uses as part of its methodology for determining the limits each year. The new loan limits are effective for FHA case numbers assigned on or after January 1, 2021.

The FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), to set Single Family forward loan limits at 115 percent of area median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county. In high-cost areas of the country, FHA’s loan limit ceiling will increase to $822,375 from $765,600. FHA will also increase its floor to $356,362 from $331,760. Additionally, the FHA-insured HECM maximum claim amount for reverse mortgages will increase to $822,375 from $765,600. FHA’s current HECM regulations do not allow the HECM limit to vary by MSA or county; instead, the single HECM limit applies to all HECMs regardless of where the property is located.

12/03/2020

Beige Book released

The Federal Reserve Board has published the December 2, 2020 Beige Book, which summarizes anecdotal information on current economic conditions in each Reserve Bank District through reports from Reserve Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.

12/03/2020

Law enforcement act against money mules

The Department of Justice yesterday announced that the Department, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies have completed their third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Europol announced a simultaneous effort, the European Money Mule Action (EMMA).

Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules. Actions occurred in every state in the country. The initiative targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.

12/03/2020

IRS ID protection program expanded to all taxpayers

The IRS has announced that starting in January the Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identities. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. An IP PIN helps the IRS verify a taxpayer's identity and accept their electronic or paper tax return. The online "Get An IP PIN" tool at IRS.gov/ippin will immediately display the taxpayer's IP PIN.

Additional IP PIN information for taxpayers:

  • The "Get an IP PIN" tool will be available in mid-January. This is the preferred method of obtaining an IP PIN and the only one that immediately reveals the PIN to the taxpayer.
  • The online tool uses Secure Access authentication which uses several different ways to verify a person's identity. Before using the "Get an IP PIN" tool, the IRS encourages taxpayers to review the requirements at www.IRS.gov/secureaccess.
  • Taxpayers who want to voluntarily opt into the IP PIN program do not need to file a Form 14039, Identity Theft Affidavit.
  • The IP PIN is valid for one year. Each January, the taxpayer must obtain a newly generated IP PIN.
  • The IP PIN must be properly entered on electronic and paper tax returns to avoid rejections and delays.
  • Taxpayers with either a Social Security number or Individual Tax Identification Number who can verify their identities are eligible for the opt-in program.
  • Any primary taxpayer (listed first on the return), secondary taxpayer (listed second on the return) or dependent may obtain an IP PIN if they can pass the identity proofing requirements.
  • The IRS plans to offer an opt out feature to the IP PIN program in 2022 if taxpayers find it is not right for them.

12/03/2020

Foreclosure and REO eviction moratoriums extended

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least January 31, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on December 31, 2020.

12/03/2020

OFAC sanctions associate of major fugitive drug lord

The Treasury Department has announced that OFAC has designated Mexican national Lucio Rodriguez Serrano as a Specially Designated Narcotics Trafficker in accordance with the Foreign Narcotics Kingpin Designation Act. Rodriguez Serrano engages in various activities on behalf of Rafael Caro Quintero, a major Mexican narcotics trafficker and the mastermind behind the murder of Drug Enforcement Administration Special Agent Enrique “Kiki” Camarena in 1985. Caro Quintero remains a fugitive from U.S. justice.

As a result of OFAC’s action, all property and interests in property of the designated individual that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

For further identification information on Rodriguez Serrano and several other OFAC changes, see BankersOnline's OFAC Update.

12/03/2020

New executives announced by OCC

The OCC has announced new executive assignments:

  • Karen Boehler - Deputy Comptroller of the Western District
  • Joel Denkert - Deputy Comptroller for Midsize Bank Supervision
  • Enice Thomas - Deputy Comptroller for Credit Risk Policy

12/02/2020

CFPB files lawsuit for TSR violations

The Bureau has filed a complaint against DMB Financial, LLC (DMB), headquartered in Beverly, Massachusetts, that alleges DMB violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act of 2010 (CFPA) in connection with its debt-settlement and debt-relief services by requesting and receiving fees before it performed its promised services and before consumers started payments under any debt settlement. The Bureau also alleges that, after settling individual debts, DMB collected fees based on increased debt amounts after enrollment rather than the amount of each debt at the time of enrollment.

The Bureau's complaint requests that the court permanently enjoin DMB from future violations, provide additional injunctive relief, order DMB to pay redress to harmed consumers and to disgorge ill-gotten gains, and impose civil money penalties on DMB.

12/02/2020

Discount rate meeting minutes Oct. 5 – Nov. 5

The Federal Reserve Board has released the minutes of its interest rate meetings from October 5 through November 5, 2020.

12/02/2020

Interim rule mitigating COVID-19-related transition costs published

The OCC, Federal Reserve Board, and FDIC have published [85 FR 77345] in today's Federal Register their interim final rule to mitigate temporary transition costs on banking organizations related to the coronavirus disease 2019 (COVID event). See the November 23, 2020, BankersOnline Top Story for details.

12/02/2020

OCC reports 14 outstanding CRA evaluations

The OCC has released a list of Community Reinvestment Act performance evaluations that became public during November. Of the 39 evaluations made public last month, 25 are rated Satisfactory, and these 14 institutions' evaluations are rated Outstanding (links are to the banks’ evaluations):

12/02/2020

OCC reduces 2021 assessments

The OCC has announced it is reducing the rates in all Fee Schedules by three percent for the 2021 calendar year.

The 2021 reduction is in addition to the ten percent reduction to all Fee Schedules in 2020 and to the General Assessment Fee Schedule in 2019. The reduction reflects increased operating efficiencies that the agency has achieved over the last several years. The reduced assessments go into effect January 1, 2021, and will be reflected in assessments paid on March 31, 2021, and September 30, 2021.

12/02/2020

OFAC targets network aiding Colombian DTO

The Treasury Department has announced OFAC has designated Jhon Fredy Zapata Garzon (Zapata Garzon) under authority of the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for materially assisting the international narcotics trafficking activities of the Clan del Golfo drug trafficking organization (DTO). Three of his family members and associates are also being designated along with four businesses they own or control.

Since June 2000, more than 2,100 entities and individuals have been named pursuant to the Kingpin Act for their role in international narcotics trafficking. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,503,470 per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

For identification information on all of the individuals and entities affected in OFAC's action, see BankersOnline's OFAC Update.

12/01/2020

Webinar on use of artificial intelligence

FDIC FIL-109-2020 has announced the FDIC, Fed, OCC, and CFPB will conduct an Ask the Regulators webinar event for their supervised institutions on the use of artificial intelligence (AI), including machine learning (ML) on Wednesday, December 16, 2020, at 1:00 p.m. EST.

During the “Ask the Regulators: Banks’ Use of Artificial Intelligence, including Machine Learning” webinar, the agencies will discuss issues and common questions raised about banks’ use of AI/ML, including risk management and controls, data usage, explainability and transparency, independent review, and consumer protection considerations. The agencies will also highlight several existing laws, regulations, supervisory guidance, and other resources that may be relevant to AI/ML usage.

Pregistration is required.

12/01/2020

HUD awards $54.7M in new rental grants for low-income persons

HUD has announced the awarding of over $54.7 million in capital advance and project rental assistance grants to 15 organizations, to expand the supply of affordable rental housing for extremely low-income persons with disabilities. The capital advance awards will support integrated affordable housing by providing funding for the development of permanent supportive rental housing through it’s Section 811 Supportive Housing for Persons with Disabilities program.

12/01/2020

NCUA prohibition notices issued

The NCUA issued two prohibition notices in November 2020, to individuals who are now prohibited from participating in the affairs of any federally insured financial institution.

  • A former employee of Groton Municipal Employees Federal Credit Union in Groton, Connecticut, who had entered into a pretrial diversion or similar program resulting from a charge of third degree larceny in connection with her employment.
  • A former employee of Beacon Credit Union in Lynchburg, Virginia, who had been sentenced on a charge of embezzlement in connection with her employment.

12/01/2020

Bureau no-action letter issued

The Consumer Financial Protection Bureau has announced it has granted a no-action letter to Upstart Network, Inc., regarding its automated model for underwriting and pricing applications for unsecured closed-end loans.

12/01/2020

Bureau issues Advisory Opinions Policy and two opinions

On Monday, November 30, 2020, the Consumer Financial Protection Bureau issued its final Advisory Opinions Policy. The policy is meant to provide a way to clarify ambiguities in the Bureau's regulations or in statutory requirements. The Bureau has said that the program "provides a mechanism through which the Bureau can more effectively carry out its statutory purposes and objectives by better enabling compliance in the face of regulatory and statutory uncertainty." Information about the Advisory Opinions program is available on the Bureau's website.

The Bureau also released its first two Advisory Opinion Letters on these topics:

The two Advisory Opinion Letters will be effective upon publication in the Federal Register.

  • Publication and effective date update: The Bureau's Advisory Opinions Policy was published at 85 FR 77987 on December 3, 2020, and was effective November 30, 2020.

12/01/2020

Fed releases senior financial officer survey data

The Federal Reserve Board has released results of a survey of senior financial officers at banks about their strategies and practices for managing reserve balances. The Senior Financial Officer Survey (SFOS) is used by the Board to obtain information about deposit pricing and behavior, bank liability management, the provision of financial services, and reserve management strategies and practices. The most recent survey was conducted in collaboration with the Federal Reserve Bank of New York between September 18, 2020, and October 2, 2020, and includes responses from banks that held approximately three quarters of total banking system's reserve balances at the time of the survey.

12/01/2020

Revisions to small business size standards proposed

The SBA is requesting public comments on a proposed rule that would revise the small business size standards for businesses in five North American Industrial Classification System (NAICS) sectors to increase small business eligibility for SBA’s loan and contracting programs. The NAICS sectors reviewed in the proposed rule are: Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; and Other Services. SBA proposes to increase size standards for 70 industries in those sectors.

Comments on the proposal will be accepted through January 26, 2021.

12/01/2020

Debt parking scheme halted

The Federal Trade Commission has filed an action in U.S. District Court and received a stipulated Order for Permanent Injunction and Monetary Judgment against a debt collection company that allegedly placed bogus or highly questionable debts on consumers’ credit reports to coerce them to pay the debts. The FTC alleged that the company and its owners, Brandon M. Tumber, Kenny W. Conway, and Joseph H. Smith, had collected more than $24 million from consumers. Under a settlement with the FTC, the company, Midwest Recovery Systems (Midwest Recovery), is prohibited from the practice, known as “debt parking,” and required to delete the debts it previously reported to credit reporting agencies.

The settlement includes a monetary judgment of $24.3 million, which is partially suspended based on an inability to pay. Tumber and the company will be required to pay $56,748, and Tumber will also be required to sell his stake in another debt collection company and provide the proceeds from that sale to the FTC. In addition, Midwest Recovery will be required to surrender all of its remaining assets. If the defendants are found to have misrepresented their ability to pay, the full amount of the judgment would become immediately payable.

12/01/2020

FDIC and OCC list CRA exam schedules

The FDIC and the OCC have issued their respective schedules for CRA examinations during the first and second quarters of 2021.

12/01/2020

Bureau adds to executive team

The CFPB has announced additions to its executive team:

  • Matthew R. Bettenhausen serves as Senior Advisor and Counselor to the Director
  • Chris Chilbert is the Chief Information Officer in the Bureau’s Operations Division
  • Janis K. Pappalardo is the Associate Director for Research, Markets and Regulations
  • Donna Roy is the Bureau’s Chief Operating Officer
  • Deborah Royster is the Assistant Director, Office for Older Americans

12/01/2020

OFAC sanctions Chinese tech company for Maduro support

The Treasury Department has announced that OFAC has designated China National Electronic Import-Export Company (CEIEC) for supporting the illegitimate Maduro regime’s efforts to undermine democracy in Venezuela, including its efforts to restrict internet service and conduct digital surveillance and cyber operations against political opponents.

CEIEC has over 200 subsidiaries and offices around the world. Concurrent with this action, OFAC is issuing a general license that, for 45 days, authorizes all transactions and activities prohibited by E.O. 13692, as amended, that are ordinarily incident and necessary to the wind-down of transactions involving CEIEC.

See BankersOnline's OFAC Update for CEIEC identification details and links to the general license and a related FAQ.

12/01/2020

LIBOR transition statement issued

The Federal Reserve Board, FDIC, and the OCC have issued a statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly—and safe and sound— LIBOR transition.

12/01/2020

Fed CRA ratings for October and November

Our review of the Federal Reserve Board's archive of CRA evaluation ratings indicates that in the months of October and November, 2020, the Federal Reserve Banks made public 21 ratings. Of the Federal Reserve member banks listed, one received a "Needs to Improve" rating, 17 were rated "Satisfactory," and these three banks received ratings of "Outstanding" (links are to the banks' evaluations):

12/01/2020

Powell discusses CARES Act with Senate Committee

Yesterday, Federal Reserve Board Chair Jerome H. Powell updated the Senate Committee on Banking, Housing, and Urban Affairs on the actions of the Federal Reserve to use its policies to help alleviate the economic burden resulting from the pandemic.

He noted economic activity has continued to recover from its depressed second-quarter level. The reopening of the economy led to a rapid rebound in activity, and real gross domestic product, or GDP, rose at an annual rate of 33 percent in the third quarter. In recent months, however, the pace of improvement has moderated. Household spending on goods, especially durable goods, has been strong and has moved above its pre-pandemic level. In contrast, spending on services remains low largely because of ongoing weakness in sectors that typically require people to gather closely, including travel and hospitality.

Powell said the Federal Reserve's response has been guided by its mandate to promote maximum employment and stable prices for the American people, along with its responsibilities to promote the stability of the financial system. The CARES Act assigns sole authority over its funds to the Treasury Secretary, subject to the statute's specified limits. The Secretary has indicated that these limits do not permit the CARES Act-funded facilities to make new loans or purchase new assets after December 31 of this year. Accordingly, the Federal Reserve will return the unused portion of funds allocated to the lending programs that are backstopped by the CARES Act in connection with their termination at the end of this year. As the Secretary noted in his letter, non-CARES Act funds in the Exchange Stabilization Fund are available to support emergency lending facilities if they are needed.

12/01/2020

Fed lending programs extended through first quarter

Treasury and the Federal Reserve Board have announced an extension of four of the Fed's credit facilities through March 31, 2021:

  • Commercial Paper Funding Facility
  • Money Market Mutual Fund Liquidity Facility
  • Primary Dealer Credit Facility
  • Paycheck Protection Program Liquidity Facility

11/30/2020

FOMC minutes released

The Federal Reserve Board has released the minutes of the Federal Open Market Committee's November 4–5, 2020, meeting.

11/30/2020

Revised Reg F published

The Consumer Financial Protection Bureau has published its previously-announced final rule revising Regulation F, which implements the Fair Debt Collection Practices Act, at 85 FR 76734 of today's Federal Register. The rule will become effective one year from today.

11/30/2020

Bureau makes another change

This time it's not a regulation that's been changed. The CFPB has announced some changes to its website at consumerfinance.gov. Thus far, it appears slightly different in its main pages, but many parts of the site still look very familiar.

The Bureau says that the updated website will feature additional user functionality, an improved layout, more content, and easier access to information. Notably, the refresh will also include a new interactive enforcement database to help the public track the Bureau’s enforcement actions. Through these updates, the Bureau "aims to increase transparency and make it easier for consumers and stakeholders to locate and access essential resources."

The significant changes announced in the Bureau's press release include:

  • An interactive enforcement database. This new database allows users to quickly find information about the Bureau’s public enforcement actions. Users can view interactive graphs tracking cumulative consumer relief, cumulative enforcement actions, and total enforcement actions per year.
  • A page for petitions. Petitions for rulemaking will be publicly available on the Bureau’s website. Users can now easily search for and find petitions in a centralized location.
  • Archiving of older content. Blogs, newsroom pages, and reports older than two years old will now be labeled to provide clarity and identify items that may not be the most up to date resources offered by the Bureau. The materials will still be accessible via the search function on the website. Users will be able to clearly see if they are being directed to or are using an archived page.

The CFPB plans further improvements to the site in the coming months.

11/25/2020

JPMorgan Chase Bank pays $250M for lax controls

The OCC has announced it has issued a Consent Order to JPMorgan Chase Bank, National Association (Columbus, Ohio) to pay a $250 million civil money penalty, based on the bank's failure to maintain internal controls and internal audit over its fiduciary business.

For additional information and a link to the Consent Order, see "OCC hits JPMorgan Chase with $250M CMP" in the BankersOnline Penalty pages.

11/25/2020

FHFA announces conforming loan limits

The Federal Housing Finance Agency has announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021. In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020.

For areas in which 115 percent of the local median home value exceeds the baseline CLL, the maximum loan limit will be higher than the baseline loan limit. The Housing and Economic Recovery Act establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling" on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2020, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375 — or 150 percent of $548,250.

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $822,375 for one-unit properties.

As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum CLL will be higher in 2021 in all but 18 counties or county equivalents in the U.S.

11/25/2020

House prices climbing

The Federal Housing Finance Agency (FHFA) has announced U.S. house prices rose 3.1 percent in the third quarter of 2020, up 7.8 percent from the third quarter of 2019—the fastest year-over-year rate of appreciation since 2006. FHFA's seasonally adjusted monthly index for September was up 1.7 percent from August.

11/25/2020

OCC issues proposed CRA General Performance Standards

The OCC is inviting comment on a notice of proposed rulemaking regarding the Community Reinvestment Act’s (CRA) general performance standards. The OCC published a final rule in June 2020 to strengthen and modernize the agency’s regulations under the CRA to encourage banks to engage in more activities to serve the needs of their communities, particularly low- and moderate-income and other historically underserved communities.

The proposal released yesterday provides the OCC’s proposed approach to determine the CRA evaluation measure benchmarks, retail lending distribution test thresholds, and community development minimums under the general performance standards set forth in the 2020 final rule. The proposal also explains how the OCC would assess significant declines in CRA activities levels in connection with performance context following the initial establishment of the benchmarks, minimums, and thresholds. Finally, the proposed rule would make clarifying and technical amendments to the 2020 final rule.

  • Publication and comment period update: Published on December 4, 2020, at 85 FR 78258 in the Federal Register, with a 60-day comment period ending February 2, 2021.

11/25/2020

Navy FCU settles OD fees class action suit for $16M

The CreditUnionTimes reports the Navy Federal Credit Union will settle a class action suit for $16 million that will reimburse an estimated 700,000 current and former members who were charged fees for overdrafts.

An Alexandria, Virginia, U.S. District Court judge has issued a preliminary approval for the settlement in Lambert v. Navy Federal Credit Union, with final approval expected in March.

The suit was brought by Ruby Lambert in January 2019 after she was charged a second $29 NSF fee when a $96 check on her account was presented a second time after it was bounced to her insurance company. Although Lambert acknowledged that Navy Federal was allowed to charge her a single NSF fee, she argued in court documents that the credit union breached terms of member account agreements when it charged her a second NSF fee for the same insurance check payment.

Lambert's suit was dismissed in August 2019 because Navy Federal's account agreement gave the CU a contractual right to charge an NSF fee each time an NSF check is presented. Lambert appealed to the U.S. District Court for the Eastern District of Virginia. Navy Federal and Lambert's lawyers agreed to settle the suit.

The $16 million cash fund will pay for $5.2 million in attorney fees, a $5,000 “service award” for Lambert, and millions in NSF fee reimbursements for an estimated 700,000 current and former Navy Federal members who were assessed a second or third NSF fee for a single payment transaction that was rejected because of insufficient funds in their accounts from January 28, 2014, to October 27, 2020. Navy Federal will separately pay all settlement administration costs.

11/25/2020

HUD launches Recovery House Program

HUD Secretary Carson has announced the publication of the Notice for HUD’s pilot Recovery Housing Program (RHP). The program was authorized by the SUPPORT Act to provide stable, temporary housing to individuals in recovery from a substance use disorder.

RHP is funding 25 grantees, 24 states and the District of Columbia, whose age-adjusted rate of drug overdose deaths was above the national overdose mortality rate. The RHP Notice provides state grantees the flexibility to carry out activities directly or pass funds through to local governments in rural and urban areas throughout the state. Therefore, grantees can streamline the use of RHP funds, particularly by nonprofits and other subrecipients that currently administer residential programs for persons in recovery from a substance use disorder.

11/24/2020

Reserve Banks' quarterly financials

The Federal Reserve Board has posted the third quarter 2020 combined financial reports summarizing the financial position and results of operations of the Reserve Banks. The combined information includes the accounts and results of operations of each of the 12 Reserve Banks and some consolidated variable interest entities. All financial information included in the quarterly financial reports is unaudited.

11/24/2020

OCC updates Activities and Operations rules

The Office of the Comptroller of the Currency has announced a final rule that updates the agency's rules for national bank and federal savings association activities and operations, with amendments affecting 12 CFR parts 4, 5, 7, 145, and 160. The rule, which takes effect April 1, 2021, is part of the OCC’s continuous effort to modernize its rules and remove unnecessary requirements to relieve banks of unnecessary burdens, encourage economic opportunity, and promote the safe, sound, and fair operation of the federal banking system. The final rule changes 12 CFR part 7 to update or eliminate outdated regulatory requirements that no longer reflect the modern financial system and to clarify and codify recent OCC interpretations. The Rule includes changes:

  • incorporating and streamlining interpretations addressing permissible derivatives activities for national banks;
  • codifying interpretations to permit national banks and federal savings associations to engage in certain tax equity finance transactions;
  • codifying interpretations regarding national bank membership in payment systems and clarifying that federal savings associations are subject to the same requirements as national banks;
  • expanding the ability of national banks and federal savings associations to choose corporate governance provisions under state law;
  • clarifying the extent to which national banks may adopt anti-takeover provisions permissible under state corporate governance law;
  • clarifying when national bank participation in a financial literacy program on the premises of, or a facility used by, a school or other organization would not be a branch;
  • codifying interpretations of the National Bank Act relating to capital stock issuances and repurchases; and
  • applying rules relating to finder activities, indemnification, equity kickers, postal services, independent undertakings, and hours and closings to federal savings associations.

11/24/2020

New OCC Licensing Manual booklet issued

OCC Bulletin 2020-102, issued yesterday, announced the new “Mutual to Stock Conversions” booklet of the Comptroller’s Licensing Manual. The new booklet incorporates provisions of the revised regulation (12 CFR 192) that became effective August 13, 2020. The new booklet:

  • provides an overview of policy considerations and decision criteria that the OCC considers when reviewing applications by federal savings associations to convert from a mutual to stock form of ownership under 12 CFR 192.
  • describes various types of mutual to stock conversions including standard conversions, merger conversions, conversion mergers, and voluntary supervisory conversions.
  • describes the applications process, including the prefiling process, filing and review of the application, the decision, and the post-consummation phase of the mutual to stock conversion.
  • outlines requirements and procedures federal savings associations should follow when filing an application to convert from mutual to stock form of ownership.
  • lists references and links to informational resources and sample forms and documents that prospective filers may find helpful during the filing and conversion process.

11/24/2020

HUD proposes to allow private flood insurance on FHA-insured loans

HUD has published [85 FR 74630] a proposed rule that would amend Federal Housing Administration (FHA) regulations to allow mortgagors the option to purchase private flood insurance on FHA-insured mortgages for properties located in Special Flood Hazard Areas (SFHAs), in satisfaction of the mandatory purchase requirement of the Flood Disaster Protection Act of 1973 (the FDPA), and in harmony with private flood insurance requirements under the Biggert-Waters Act.. Comments on the proposal are due by January 22, 2021.

11/24/2020

CFPB updates 2021 HMDA FIG

The Bureau has made an update to the HMDA Filing Instructions Guide (FIG) for data collected in 2021 (for submission in 2022). Edits Q656 and Q657 in Table 8 (Macro Quality Edits for Loan/Application Register) have been reclassified and moved to Table 7 (Quality Edits for Loan/Application Register).

11/24/2020

Final IRS regs on like-kind exchanges of real property

Treasury and the IRS yesterday issued final regulations relating to section 1031 like-kind exchanges. These final regulations address the definition of real property (RP) under section 1031 and also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange.

11/23/2020

FDIC proposes temporary rule to temper CECL transition effect

FDIC FIL-107-2020, issued November 20, 2020, announces an FDIC proposed rulemaking that would address the temporary deposit insurance assessment effects resulting from certain optional regulatory capital transition provisions relating to the implementation of the current expected credit losses (CECL) methodology. The proposal would remove the double counting of a specified portion of the CECL transitional amount or the modified CECL transitional amount, as applicable, in the calculation of certain financial measures that are used to determine assessment rates for large and highly complex insured depository institutions (IDIs).

The proposal would affect only those institutions with $10 billion or more in total assets. In order to implement these adjustments, the proposal would require large and highly complex IDIs that elect a CECL transition provision to report one additional, temporary item on the Consolidated Reports of Condition and Income (Call Report).

Comments on the proposed rule will be accepted for 30 days after publication in the Federal Register.

11/23/2020

CFPB sues debt settlement company and owners

The CFPB has filed a lawsuit against FDATR, Inc., and its owners, Dean Tucci and Kenneth Wayne Halverson. The Bureau alleges that FDATR, Tucci, and Halverson violated the Telemarketing Sales Rule (TSR) by engaging in deceptive and abusive telemarketing acts or practices and the Consumer Financial Protection Act of 2010 (CFPA) through deceptive acts or practices.

FDATR was a corporation headquartered in Wood Dale, Illinois, that promised to provide student-loan debt-relief and credit-repair services to consumers nationwide. Tucci and Halverson both owned and managed FDATR, which was involuntarily dissolved in September 2020. The Bureau’s complaint, filed in the United States District Court for the Northern District of Illinois, seeks injunctions against FDATR, Tucci, and Halverson, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties.

  • CFPB press release
  • Pages

    Training View All

    Penalties View All

    Search Top Stories