Banker Compliance News

Capturing the important news of the day in an easy to access way. We post news we feel is relevant to our members and community banks nationwide.

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CFPB Orders Navy Federal Credit Union to Pay More Than $95 Million for Illegal Surprise Overdraft Fees

November 7, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) took action against Navy Federal Credit Union for charging illegal overdraft fees. From 2017 to 2022, Navy Federal charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases, even when their accounts showed sufficient funds at the time of the transactions. The CFPB…

FHFA Announces FHLBank Partnerships with Fannie Mae and Freddie Mac to Expand Housing Access for Tribal Communities

November 7, 2024 / Source: FHFA

Washington, D.C. â€“ The Federal Housing Finance Agency (FHFA) today announced two partnerships involving Fannie Mae, Freddie Mac, and Federal Home Loan Banks (FHLBanks) to boost awareness and liquidity for programs that expand housing access for tribal communities. In one partnership, the FHLBank of Des Moines will promote a Freddie Mac mortgage product intended to improve…

National Flood Insurance Program Installment Payment Plan

November 7, 2024 / Source: FEMA

AGENCY: Federal Emergency Management Agency, Department of Homeland Security (DHS). ACTION: Final rule. SUMMARY: The National Flood Insurance Program (NFIP) is a voluntary program in which interested persons can purchase flood insurance for their property, if it is located in a community that participates in the NFIP by adopting and enforcing a set of minimum…

FDIC to Unveil Online Tool to Promote Creation of New Minority Banks at the Minority Depository Institutions Subcommittee Meeting

November 6, 2024 / Source: FDIC

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) will introduce a new online tool to help financial institutions, investors, and other interested groups to identify neighborhoods that could benefit from banking services. The FDIC’s new Minority Banking Opportunity Explorer will be presented at a meeting of the agency’s Minority Depository Institutions (MDI) Subcommittee to the Advisory Committee…

Bank Manager Sentenced to Prison for Misusing Position to Steal Hundreds of Thousands of Dollars from Bank Customer

November 6, 2024 / Source: OIG

A former New York-based branch manager was sentenced yesterday to 13 months in prison, three years of supervised release, and ordered to pay $208,938.68 in both restitution and forfeiture of criminal proceeds for misusing his position to steal approximately $208,938.68 from a customer’s accounts. According to court documents and statements made in court, from January…

FTC Takes Action Against Online Cash Advance App Dave for Deceiving Consumers, Charging Undisclosed Fees

November 6, 2024 / Source: FTC

The Federal Trade Commission is taking action against online cash advance app Dave for allegedly using misleading marketing to deceive consumers about the amount of its cash advances, charging consumers undisclosed fees, and charging so-called “tips” to consumers without their consent. Dave describes the consumers it targets as being “financially vulnerable” or “financially coping,” including those whose spending…

FTC Takes Action Against Phantom Debt Collector That Collected Millions In Bogus Debt From Consumers

November 4, 2024 / Source: FTC

The Federal Trade Commission is taking action against a Georgia-based debt collector that tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and other unlawful actions. In response to a federal court complaint filed against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon, III,…

HUD Agency Head Adrianne Todman Attends G7 Summit in Rome; Highlights Biden-Harris Investments in Affordable, Sustainable Housing

November 4, 2024 / Source: HUD

ROME – The Honorable Adrianne Todman, Agency Head of the U.S. Department of Housing and Urban Development, is traveling to Rome, Italy from November 3-4 to lead the United States delegation to the G7 Ministers’ Meeting on Sustainable Urban Development, where she is holding bilateral meetings with other nations to gain key insights and share the…

FDIC Issues List of Banks Examined for CRA Compliance

November 4, 2024 / Source: FDIC

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA).  The list covers evaluation ratings that the FDIC assigned to institutions in August 2024. The CRA is a 1977 law that requires the FDIC to assess a bank’s record…

CFPB Takes Action to Address Townstone Financial’s Unlawful Redlining

November 3, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) filed a proposed order to resolve its case against Townstone Financial for discriminatory lending practices and redlining African American neighborhoods in Chicago. If entered by the court, the proposed order would prohibit Townstone from taking any actions that violate the Equal Credit Opportunity Act (ECOA) and require the…

U.S. Department of the Treasury’s CDFI Fund and Federal Housing Finance Agency Collaborate to Bolster CDFI Access to Capital

November 3, 2024 / Source: Treasury

WASHINGTON—Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) and the Federal Housing Finance Agency (FHFA) announced the establishment of a Working Group to increase capital for affordable housing lending from the Federal Home Loan Banks. The group will advance the Biden-Harris Administration’s priority of expanding the supply of affordable…

FTC Sends More Than $2.5 Million to Consumers Deceived by Credit Karma’s Allegedly False “Pre-Approved” Credit Offers

October 31, 2024 / Source: FTC

The Federal Trade Commission is sending more than $2.5 million to consumers who were misled by deceptive claims from credit services company Credit Karma. The FTC took action against Credit Karma in 2022, alleging that the company told consumers they were “pre-approved” and had “90% odds” of approval to entice them to apply for credit card offers…

CFPB Orders VyStar Credit Union to Pay $1.5 Million for Illegally Stranding Consumers from Accessing Their Money and Accounts

October 31, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) took action against VyStar Credit Union for harming consumers through its botched rollout of a new online banking system. In May 2022, VyStar transitioned to a new, dysfunctional online banking platform that made it difficult for credit union members to perform basic banking functions for weeks,…

CFPB and CMS Take Action to Stop Illegal Billing of Lowest-Income Medicare Recipients

October 31, 2024 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) and the Centers for Medicare & Medicaid Services (CMS) issued a joint statement  to protect millions of people with Medicare living at or below the poverty line from unlawful medical bills. These people in the Qualified Medicare Beneficiary group represent about one in eight Medicare recipients nationwide. Federal…

Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies

October 30, 2024 / Source: FinCEN

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) is informing U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF), updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies at…

HUD Announces $12 Million to Lower Housing Costs and Expand Access to Affordable Homeownership

October 30, 2024 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) announced the availability of $12 million to expand access to affordable housing and homeownership opportunities for Americans in rural and urban communities across the country. Grant funding awarded to organizations through HUD’s Self-Help Homeownership Opportunity Program (SHOP) allows eligible organizations to purchase land, improve…

U.S. Department of the Treasury Releases Inaugural National Strategy for Financial Inclusion

October 29, 2024 / Source: Treasury

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) released the National Strategy for Financial Inclusion in the United States, which identifies objectives and recommendations for policymakers, industry, employers, and community organizations to advance consumer access to safe financial products and services and strengthen financial security. The Strategy was requested in 2023 by Congress and has…

FHFA House Price Index Up 0.3 Percent in August; Up 4.2 Percent from Last Year

October 29, 2024 / Source: FHFA

Washington, D.C. â€“ U.S. house prices rose 0.3 percent in August, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPIÂź). House prices rose 4.2 percent from August 2023 to August 2024. The previously reported 0.1 percent price increase in July was revised upward to 0.2 percent. For the nine census divisions, seasonally adjusted monthly…

FTC Sends More Than $1 Million to Consumers Harmed by Rhinelander Auto’s Unlawful Junk Fees and Discriminatory Financing

October 29, 2024 / Source: FTC

The Federal Trade Commission is sending more than $1 million in refunds to consumers who were allegedly harmed by Rhinelander Auto Center’s junk fees and discriminatory practices. The FTC and State of Wisconsin took action against Rhinelander Auto and its general manager in 2023, alleging that they regularly charged many customers junk fees for “add-on” products or…

HUD and FHFA Expand Scope of Public Appraisal Data in Effort to Ensure Fairer Home Appraisals

October 28, 2024 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) jointly released new appraisal data from loan applications on single family mortgages insured by HUD’s Federal Housing Administration (FHA). The addition of appraisal data from the FHA expands the scope of information in FHFA’s Uniform Appraisal Dataset…

Treasury Issues Regulations to Implement Executive Order Addressing U.S. Investments in Certain National Security Technologies and Products in Countries of Concern

October 28, 2024 / Source: Treasury

WASHINGTON – The U.S. Department of the Treasury (Treasury) today issued a final rule (Final Rule) to implement Executive Order 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern” (the Outbound Order). The Final Rule provides the operative regulations and a detailed explanatory discussion…

CFPB to distribute over $191 million to consumers harmed by Tempoe

October 28, 2024 / Source: CFPB

This month, over 250,000 consumers harmed by leasing company Tempoe, LLC, will begin receiving refund checks in the mail. Tempoe offered point-of-sale financing at major retailers, including Sears and Kmart. The CFPB took action against the company for tricking customers into expensive leasing agreements by hiding the contract terms and costs. Tempoe’s practices left hundreds…

FinCEN Issues Alert to Financial Institutions to Counter Financing of Hizballah and Its Terrorist Activities

October 23, 2024 / Source: FinCEN

WASHINGTON—Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert to assist financial institutions in identifying and reporting suspicious activity supporting Lebanese Hizballah (Hizballah), a U.S.-designated Foreign Terrorist Organization. The alert builds upon FinCEN’s May 2024 advisory on Iran-backed terrorist organizations and offers a comprehensive overview of Hizballah’s global criminal financial networks. “Hizballah’s role…

U.S. Department of the Treasury Announces Awards to Support Development of 26,400 Affordable Housing Units

October 23, 2024 / Source: Treasury

WASHINGTON – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today awarded 48 organizations $246.4 million for the development of affordable housing and community facilities serving low-income, families and communities that need additional investment. These awards were made through the fiscal year (FY) 2024 round of the Capital Magnet Fund…

CFPB Orders Apple and Goldman Sachs to Pay Over $89 Million for Apple Card Failures

October 23, 2024 / Source: CFPB

Washington, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) took action against Apple and Goldman Sachs for customer service breakdowns and misrepresentations that impacted hundreds of thousands of Apple Card users. The CFPB found that Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman Sachs, and when Apple…