News

FinCEN Finalizes AML Rule for Institutions Lacking Federal Oversight

On September 14, 2020,  the Financial Crimes Enforcement network (FinCEN) closed the regulatory gap and issued a final rule which removed the anti-money laundering (AML) program exemption for financial institutions that lack a Federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies. These institutions will now [...]

September 23rd, 2020|

Federal Reserve releases proposals on CRA modernization

The Federal Reserve Board (FRB) released a draft advance notice of proposed rulemaking (ANPR) on September 21, 2020 related to its effort to modernize its approach to supervising institutions under the Community Reinvestment Act (CRA). This effort seeks to make changes by “strengthening, clarifying, and tailoring” the FRB’s CRA framework. The FRB has several objectives [...]

September 22nd, 2020|

CFPB Releases Outline of Small Business Data Collection Rulemaking

On September 15th, the Consumer Financial Protection Bureau (CFPB) released an Outline of Proposals Under Consideration for a small business lending data collection and reporting rulemaking pursuant to Section 1071 of the Dodd-Frank Act.  Section 1071 amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect certain data regarding applications for credit for women-owned, [...]

September 21st, 2020|

CFPB Releases Updated Report on New and Revised HMDA Data Points for 2019

On August 27, 2020, the Consumer Financial Protection Bureau (CFPB) released its second report on the publicly released data submitted under the Home Mortgage Disclosure Act (HMDA) for 2019 mortgage lending activity. The new report provides an updated review of new and revised HMDA data points that were mandated for HMDA reporting in the CFPB’s [...]

August 28th, 2020|

Banking Agencies Issue Joint Statement on Enforcement of BSA/AML Requirements

On August 13th,the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency (the Agencies) issued joint guidance to clarify and update policies addressing the enforcement of the Bank Secrecy Act’s (BSA’s) anti-money laundering (AML) program requirement. The guidance, which replaces a prior interagency statement from [...]

August 17th, 2020|

Redlining Violations Include Discouragement and Low Application Volume

On July 15th, the Consumer Financial Protection Bureau (CFPB) filed suit against Townstone Financial, Inc. for violations of the Equal Credit Opportunity Act (ECOA), Regulation B, and the Consumer Financial Protection Act (CFPA). This case is interesting for several reasons, not the least of which are that – The CFPB suggests that the violations noted [...]

July 16th, 2020|

NAR and Quicken Loans ask HUD to Withdraw Proposed Amendments to Fair Housing Act

In recent days, both Quicken Loans, the nation’s largest lender, and The National Association of Realtors (NAR), the nations’ largest trade organization, have called on the Department of Housing and Urban Development (HUD) to withdraw its proposed rule to amend the HUD interpretation of the Fair Housing Act’s disparate impact standard. Bill Emerson, vice chairman of Quicken Loans, [...]

July 15th, 2020|

OCC Releases Semiannual Risk Perspective – Warns of Covid-19 Related Increased Risk

On June 29th, the Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective report, finding that due to the current COVID-19 pandemic will stress institutions' financial performance this year. The report also said that compliance risk is on the rise, in part because of federal programs related to the CARES Act and [...]

July 2nd, 2020|

CFPB Issues Interpretive Rule on Method for Determining Underserved Areas

On June 23rd, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the Bureau determines which counties qualify as “underserved” for a given calendar year. issued Tuesday.  The guidance is necessary, the CFPB said, because [...]

June 25th, 2020|

Santander Agrees to Pay $550M to Settle Auto-Lending Lawsuit

Last week, Santander Consumer USA Holdings, which is part of Santander Bank, settled with 33 states and the District of Columbia through payments of $550 million. The settlement was the culmination of its long-standing effort to resolve compliance problems that arose six to ten years ago, from 2010 to 2014.  Broadly, the accusation was that [...]

May 26th, 2020|