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|

OCC Announces Final CRA Modernization Rule

On May 20, 2020, the Office of the Comptroller of the Currency (OCC) announced the release of final rule designed to modernize its regulations regarding the Community Reinvestment Act (CRA). The final CRA modernization rule makes the following changes in the CRA compliance framework: Clarifies and expands the types of lending, investments and services activities [...]

May 22nd, 2020|

CFPB Highlights Importance of Fair Lending for Minority and Women-Owned Businesses

On April 27, 2020, the Consumer Financial Protection Bureau (CFPB) released a blog post about Fair Lending to minority and women-owned businesses. The blog entry explains the purpose of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Small Business Administration’s Paycheck Protection Program (PPP). These loans are designed to allow small businesses to [...]

May 6th, 2020|

Regulators Update BSA/AML Exam Manual

On April 15th, federal and state financial institution regulators, through the Federal Financial Institutions Examination Council (FFIEC), released several updates to the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) examination manual.  The manual is used to evaluate compliance with the Bank Secrecy Act and anti-money laundering requirements.  Revisions were made by the Federal Reserve Board, Federal Deposit [...]

April 16th, 2020|

ADI Announces Availability of Preliminary Snapshot of National 2019 HMDA Data

On April 1, 2020, the Consumer Financial Protection Bureau (CFPB) released the Modified Loan Application Registers (LARs) reflecting 2019 mortgage lending activity reported under the Home Mortgage Disclosure Act (HMDA). These reports represent the second release of HMDA data under the new rule implemented in 2015. Starting in 2018, under the 2015 HMDA Rule, financial [...]

April 13th, 2020|

New White Paper Urges CFPB Action to Address Pandemic

On April 6, 2020, a white paper on the effects of the coronavirus pandemic was published publicly and addressed to the current director of the Consumer Financial Protection Bureau (CFPB, the Bureau),  Kathleen Kraninger. This white paper – authored by Richard Cordray (former CFPB director), Diane Thompson (former CFPB deputy assistant director of regulations) and [...]

April 7th, 2020|

Former U.S. Bank Risk Officer Fined $450K for AML Compliance Failures

The Financial Crimes Enforcement Network (FinCEN) has assessed a $450,000 civil money penalty against Michael LaFontaine, former chief operational risk officer at U.S. Bank, for his failure to prevent violations of the Bank Secrecy Act (BSA) during his tenure. According to the FinCEN order, Michael LaFontaine at various times had responsibility for overseeing U.S. Bank’s anti-money laundering [...]

March 16th, 2020|

2018 HMDA Data Now Available

On Friday, August 30, 2019, the Federal Financial Institutions Examination Council (FFIEC) announced the availability of data reported under the Home Mortgage Disclosure Act (HMDA) for 2018 lending activity. The newly released datasets follow the release of the modified HMDA data in March 2019, which provided lender-level datasets. The newly released data includes a static [...]

September 3rd, 2019|

OneWest Bank reaches settlement on redlining allegation

On July 29, 2019 the U.S. Department of Housing and Urban Development (HUD) announced its approval of an agreement between the California Reinvestment Coalition (CRC) and OneWest Bank. This complaint settles allegations by CRC that the bank discriminated against minority communities in the Los Angeles metropolitan area. The complaint filed with the HUD in 2017 [...]

August 2nd, 2019|