News

Texas Bank Issued Cease and Desist Order for BSA/AML Deficiencies

Commercial State Bank, a $676 million bank in Andrews, Texas, has been issued a Consent Cease and Desist Order by the Federal Reserve Bank of Dallas and the Texas Department of Banking  for significant deficiencies in the bank’s risk management and compliance with Bank Secrecy Act/anti-money laundering (BSA/AML) applicable laws, rules, and regulations. The bank was directed [...]

January 16th, 2019|

CFPB Announces Final Policy Guidance on Public Disclosure of HMDA Data

On December 21, 2018, the Consumer Financial Protection Bureau (CFPB) announced its final policy guidance regarding the public disclosure of loan-level HMDA data collected under the 2015 HMDA rule. The guidance is effective for HMDA data that will be published by the CFPB in 2019 for 2018 reportable mortgage activity. The CFPB will disclose most [...]

January 2nd, 2019|

OCC Announces $100 Million Penalty Against Capital One Bank for BSA/AML Deficiencies

On October 23, 2018, the Office of the Comptroller of the Currency (OCC) announced $100 million in civil money penalties against Capital One Bank based on deficiencies in the bank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program. The penalties are linked to Capital One’s failure to adequately respond to a 2015 Cease and Desist Order [...]

October 24th, 2018|

Citigroup Under Scrutiny for Possible Fair Lending Violations

According to an exclusive report published by Reuters, Citigroup Inc. may be penalized for possible Fair Lending violations by the Office of the Comptroller of the Currency (OCC). The regulators' scrutiny is related to Citigroup's "relationship pricing" program that offered discounts on mortgage interest rates to customers based on their deposit and investment balances held [...]

October 16th, 2018|

NYDFS Calls for Stronger Rules for Online Lenders

New York’s Department of Financial Services (NYDFS)  has recommended that online lenders are subjected to the same scrutiny and regulations that traditional banks face.  A bill signed by Governor Andrew M. Cuomo on June 1, 2017, required DFS to study online lending in New York State and submit a report of its findings. Superintendent Maria T. Vullo announced the [...]

July 16th, 2018|

FinCEN Publishes Additional FAQs for New CDD Rule

On April 3, the Financial Crimes Enforcement Network (FinCEN) published a long-awaited update to Frequently Asked Questions Regarding the Customer Due Diligence Requirements for Financial Institutions. The questions are about Customer Due Diligence Requirements for Financial Institutions, published on May 11, 2016, as amended on September 29, 2017. FinCEN is labeling it the CDD Rule. The [...]

April 9th, 2018|

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 [...]

September 21st, 2017|

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 [...]

May 16th, 2017|

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 [...]

April 20th, 2017|

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- [...]

March 30th, 2017|