Banker Compliance News

Banking compliance professionals require hot-topic news on consumer and regulatory compliance updates, decisions, amendments, changes and launches from across a wide spectrum of news agencies and federal websites. Not only do we update our News pages with individual news items and their links, but these are sent to members in a Daily Bank Compliance email that can be signed up for once new members log-in. Compliance Alliance monitors these agencies for bank compliance news updates throughout the day—posting relevant information to our News page. This is a valuable resource for Bank Managers and their employees.

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Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on Developments Regarding Large Asset Manager Ownership of Banks

December 30, 2024 / Source: CFPB

Our country has long understood the importance of preventing commercial interests from gaining an unfair advantage by consolidating ownership of railroads, electric utilities, banks, and other essential infrastructure with other commercial interests under the same corporate conglomerate or trust. Since banks obtain publicly subsidized funding in the form of federally insured deposits and other government…

Extension of the Revised Statement Regarding Status of Certain Investment Funds and Their Portfolio Investments for Purposes of Regulation O and Reporting Requirements under Part 363 of FDIC Regulations

December 29, 2024 / Source: FDIC

Summary: The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the “federal banking agencies”) are issuing the attached Interagency Statement, concerning Regulation O1 and Part 3632 of the FDIC Regulations, to extend the expiration of certain no-action position previously…

CFPB Files Lawsuit to Stop Illegal Kickback Scheme to Steer Borrowers to Rocket Mortgage

December 23, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) sued Rocket Homes  to stop them from providing incentives to real estate brokers and agents in exchange for steering homebuyers to Rocket Mortgage, LLC for loans. The CFPB also sued Jason Mitchell, his real estate brokerage firm, JMG Holding Partners LLC, which does business as The Jason Mitchell…

Due to evolving legal landscape & changes in the framework of administrative law, Federal Reserve Board will soon seek public comment on significant changes to improve transparency of bank stress tests & reduce volatility of resulting capital requirements

December 23, 2024 / Source: FRB

In view of the evolving legal landscape, the Federal Reserve Board will soon seek public comment on significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements. The Board’s stress test evaluates the resilience of large banks by estimating their losses, revenue, and capital…

CFPB Sues Walmart and Branch Messenger for Illegally Opening Deposit Accounts for More Than One Million Delivery Drivers

December 23, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) sued Walmart and Branch Messenger for forcing delivery drivers to use costly deposit accounts to get paid and for deceiving workers— “last mile” drivers in Walmart’s Spark Driver program—about how they could access their earnings. The CFPB’s lawsuit alleges that Walmart and Branch opened Branch accounts…

FHFA Releases 3rd Quarter 2024 Foreclosure Prevention and Refinance Report

December 22, 2024 / Source: FHFA

Washington, D.C. â€“ The Federal Housing Finance Agency (FHFA) today released its third quarter 2024 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 43,459 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 7,047,721 since the start of conservatorships…

FHFA Finalizes 2025–2027 Housing Goals for Fannie Mae and Freddie Mac

December 22, 2024 / Source: FHFA

Washington, D.C. â€“ The Federal Housing Finance Agency (FHFA) issued a final rule today that establishes new affordable housing goals for the loan purchases of Fannie Mae and Freddie Mac (the Enterprises) over the next three years, and updates the process for requiring an action plan when an Enterprise misses certain goals. The housing goals, generally…

OCC Issues Annual Report for 2024

December 22, 2024 / Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today published its 2024 Annual Report. The OCC Annual Report provides Congress with an overview of the condition of the federal banking system, discusses the OCC’s strategic priorities and initiatives, and shares the agency’s financial management and condition. The report highlights the OCC’s work to advance…

CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle

December 20, 2024 / Source: CFPB

Washington, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) sued the operator of Zelle and three of the nation’s largest banks for failing to protect consumers from widespread fraud on America’s most widely available peer-to-peer payment network. Early Warning Services, which operates Zelle, along with three of its owner banks—Bank of America, JPMorgan Chase, and…

Agencies release annual asset-size thresholds under Community Reinvestment Act regulations

December 19, 2024 / Source: FRB

The Federal Reserve Board and the Federal Deposit Insurance Corporation today announced the 2025 updated Community Reinvestment Act (CRA) “small bank” and “intermediate small bank” asset-size thresholds. The CRA regulations establish the framework and criteria by which the relevant agencies assess a financial institution’s record of meeting the credit needs of its entire community, including…

Treasury Releases Report on the Uses, Opportunities, and Risks of Artificial Intelligence in Financial Services

December 19, 2024 / Source: Treasury

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) released a report following the issuance of its 2024 Request for Information (RFI) on the Uses, Opportunities, and Risks of Artificial Intelligence (AI) in Financial Services, which summarizes key themes from respondent feedback and recommends several next steps. The report highlights increasing AI use throughout the financial sector…

Biden-Harris Administration Awards $225 Million To Preserve and Revitalize Housing

December 19, 2024 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) announced the award of $225 million in competitive grant funding for 17 awardees with proposed projects across 26 states through the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program. PRICE is an innovative grant program – providing funding to preserve and revitalize manufactured…

New tactics from companies trying to charge illegal junk fees

December 19, 2024 / Source: CFPB

The Consumer Financial Protection Bureau (CFPB) is working to combat junk fees across the consumer financial marketplace. As companies are stopped from charging many of these fees, people are facing new risks as companies experiment with new sketchy fee tactics, which are often illegal. Some junk fees – like surprise overdraft fees â€“ are charged by the company the…

HUD Invests $12 Million to Strengthen Rural Communities

December 18, 2024 / Source: HUD

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded $12 million in capacity-building grants to five national non-profit organizations through the FY 23-24 Rural Capacity Building program which will fund rural housing development organizations, Community Development Corporations (CDCs), Community Housing Development Organizations (CHDOs), local governments, and Indian tribes (eligible beneficiaries) to carry…

CFPB Takes Action on Bait-and-Switch Credit Card Rewards Tactics

December 18, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ The Consumer Financial Protection Bureau (CFPB) announced major actions today to protect consumers from illegal credit card practices and help people save money on interest and fees. In a circular to other law enforcement agencies, the CFPB warned that some credit card companies operating rewards programs may be breaking the law, including by illegally devaluing…

FinCEN Warns of Fraud Schemes That Abuse Its Name, Insignia, and Authorities for Financial Gain

December 18, 2024 / Source: FinCEN

WASHINGTON—The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert today to raise awareness of fraud schemes abusing FinCEN’s name, insignia, and authorities for financial gain. These FinCEN-specific fraud schemes include scams that exploit beneficial ownership information reporting; misuse FinCEN’s Money Services Business Registration tool; or involve the impersonation of, or misrepresent affiliation…

Federal Reserve issues FOMC statement

December 18, 2024 / Source: FRB

Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated. The Committee seeks to achieve maximum…

OCC Reports Mortgage Performance for Third Quarter of 2024

December 17, 2024 / Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) reported on the performance of first-lien mortgages in the federal banking system during the third quarter of 2024. The OCC Mortgage Metrics Report, Third Quarter 2024 showed that 97.4 percent of mortgages included in the report were current and performing at the end of the quarter, a slight…

Treasury Disrupts North Korean Digital Assets Money Laundering Network

December 17, 2024 / Source: Treasury

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning two individuals and one entity involved in a network that launders millions of dollars of illicit funds generated by the Democratic People’s Republic of Korea (DPRK) information technology (IT) workers and cybercrime to support the DPRK Government. Based in…

CFPB Report Finds Mortgage Companies Create Obstacles for Homeowners After Death or Divorce

December 17, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) issued a report on the experiences of homeowners dealing with their mortgage company after divorce or the death of an original borrower. Many homeowners report that their servicers push them to take on new, higher-interest loans instead of keeping their existing mortgage. Homeowners also report recurring requests from…

CFPB Finalizes Rule to Protect Homeowners on Solar Panel Loans and Other Home Improvement Loans Paid Back Through Property Taxes

December 17, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule mandated by Congress that applies existing residential mortgage protections to Property Assessed Clean Energy (PACE) loans. PACE loans are used by homeowners for clean energy upgrades and disaster readiness that are paid back through their property tax bills. Because of concerns about subprime-style lending that…

Federal Bank Regulatory Agencies Release 2023 Small Business, Small Farm, and Community Development Lending Data 

December 16, 2024 / Source: FFIEC

The federal bank regulatory agencies, as members of the Federal Financial Institutions Examination Council (FFIEC), today released data on small business, small farm, and community development lending during 2023. The Community Reinvestment Act regulations require the agencies to annually disclose these data.The FFIEC also prepared aggregate disclosure statements of small business and small farm lending…

OCC Reports on Key Risks in Federal Banking System

December 16, 2024 / Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Fall 2024. The OCC reported that the strength of the federal banking system remains sound. The OCC expects banks to remain diligent and adhere to prudent risk management practices across all…

CFPB Uncovers Illegal Practices Across Student Loan Refinancing, Servicing, and Debt Collection

December 16, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) released a special edition of its Supervisory Highlights describing a range of unlawful activities identified by CFPB examiners across student loan markets. The report covers violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing. “Companies break the law when they mislead…

Data Spotlight: Credit card cash advance fees spike after legalization of sports gambling

December 16, 2024 / Source: CFPB

Sports gambling, particularly through online sports betting platforms, is now legal in 38 states, with nearly $120 billion wagered last year . Some consumers placing bets may be in for a shock, finding their credit card issuer charged $10 or more in “cash advance” fees and added interest for each sports gambling transaction made with a credit…