News surrounding the areas of ADI’s expertise directly impacts our clients’ compliance needs and how we serve them. Staying “in the know” is critical, as today’s regulatory environment changes and evolves.

CFPB Finalizes Amendments to Equal Credit Opportunity Act

The CFPB on Wednesday issued its final rule modifying the Equal Credit Opportunity Act (ECOA) regulations, which it says will provide added flexibility for mortgage lenders in the collection of consumer ethnicity and race information.  Currently, the ECOA restricts lenders’ ability to ask consumers about race, religion, nationality or sex except as it relates to the required collection […]

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Philadelphia Sues Wells Fargo for Discriminatory Lending Practices

The City of Philadelphia announced (HousingWire) on May 15, 2017 that it will sue one of the nation’s largest banks, Wells Fargo, for discriminatory lending practices against its minority residents which, in turn, caused harm to the City. This suit will be a major test of a recent ruling by the U.S. Supreme Court (Bank […]

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CFPB Releases 2016 Fair Lending Report, Redlining Among Top 2017 Priorities

On Tuesday, the Consumer Financial Protection Bureau (CFPB) released its annual Fair Lending report. In this report, the CFPB summarizes its supervisory actions, rulemaking, guidance and other activities conducted during the 2016 calendar year. Following are some of the observations that are noted in the report related to the agency’s supervisory actions for 2016: Many […]

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OCC Downgrades Wells Fargo to ‘Needs to Improve’ in Latest CRA Exam

On March 28, 2017, Wells Fargo & Co announced (Bloomberg, March 28, 2017) that the Office of the Comptroller of the Currency (OCC) downgraded the firm in its assessment of the firm’s performance under the Community Reinvestment Act (CRA). Under CRA, depository institutions are evaluated to determine their responsiveness in meeting the needs of low- […]

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Long Island Mortgage Banker Sentenced to 12+ Years for $100M Mortgage Fraud Scheme

Aaron Wider, the former owner and CEO of the mortgage bank HTFC Corp. in Garden City, N.Y., was sentenced by a U.S. District judge to 150 months’ imprisonment for conspiracy to commit bank fraud for defrauding financial institutions out of over $30 million in mortgage proceeds. Wider, who was convicted on Jan. 25, 2016, was […]

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FRB Announces Enforcement Action with Santander

On March 23, 2017, the Federal Reserve Board (FRB) announced an enforcement action with Santander Holdings USA, Inc. and its majority-owned subsidiary, Santander Consumer USA, Inc. This action will require Santander to strengthen its compliance risk management program and improve the oversight by the Board and senior management of the lender’s subprime auto-lending unit. While […]

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CFPB Announces $1.75 Million Penalty Against Nationstar for HMDA Violations

As eluded to last week in a disclosure via a financial report filing, the Consumer Financial Protection Bureau (CFPB) formally announced a penalty against Nationstar Mortgage for violations under the Home Mortgage Disclosure Act (HMDA). The CFPB’s order requires that Nationstar: pay a record $1.75 million penalty for the alleged HMDA violations; fix HMDA reporting […]

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HUD Sanctions Illinois Bank for Fair Lending Violations

The U.S. Department of Housing and Urban Development (HUD) announced Friday, March 9th, that it has reached an agreement with Alpine Bank & Trust resolving allegations that the Northern Illinois-based lender discriminated against African American and Hispanic mortgage applicants. The agreement stems from a complaint filed with HUD by HOPE Fair Housing Center of Wheaton, Illinois, […]

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Nationstar Mortgage Discloses Fine for HMDA Violations

Nationstar Mortgage disclosed (HousingWire, March 9, 2017) that it is facing a potential fine related to violations under the Home Mortgage Disclosure Act (HMDA). The disclosure, made in its 2016 10-K filing with the Securities and Exchange Commission, acknowledges that it is currently in negotiations with the Consumer Financial Protection Bureau (CFPB) regarding the payment amount for […]

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West Virginia Community Bank to forfeit $1.36M for BSA violations

On March 1, 2017, the Department of Justice (DOJ) announced a forfeiture action on First National Bank of Williamson in the amount of $1.36 million related to violations under the Bank Secrecy Act (BSA). The action concerned structuring transactions that occurred between April 2006 and November 2008. The subject customer admitted in court that the […]

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