May 3

May 3 VIDEO: APR in Lending Advertisements

In this Compliance Clip (video), Adam talks about using an APR in a lending advertisement. Specifically, he discusses when an APR is and is not a trigger term for an advertisement, triggering additional disclosures.

Apr 30
Apr 30 FDIC Updates its Risk Management Manual of Exam Policies

Adam Witmer

Regulatory Update

On April 29, 2024, the FDIC revised parts of its Risk Management Manual of Examination Policies. The FDIC conducts examinations to help ensure the stability of insured depository institutions by identifying undue risks and weak risk management practices.

Apr 30
Apr 30 First Issue of Consumer Compliance Outlook for 2024 Released

Paula Parras

Regulatory Update

The Federal Reserve System recently published its First Issue of Consumer Compliance Outlook for 2024. Consumer Compliance Outlook is the agency’s publication focusing on consumer compliance topics.

Apr 29
Apr 29 CFPB Reports Overdraft/NSF Revenue in 2023 Significantly Decreased vs Pre-pandemic

Adam Witmer

Regulatory Update

On April 24, 2024, the CFPB published a report highlighting that overdraft/NSF Revenue in 2023 was down more than 50% versus pre-pandemic levels, saving consumers over $6 billion annually. This significant reduction in junk fees is attributed to the CFPB’s heightened its supervisory attention on overdraft and NSF fees in 2022.

Apr 29
Apr 29 CFPB Highlights UDAAP Violations in Mortgage Servicing

Adam Witmer

Regulatory Update, UDAAP

On April 24, 2024, the CFPB issued its Supervisory Highlights Spring 2024 edition which covered select examinations regarding mortgage servicing that were completed from April 1, 2023 through December 31, 2023. Examiners found that mortgage servicers engaged in UDAAPs and regulatory violations while processing payments by overcharging certain fees, failing to adequately describe fees in periodic statements, and not making timely escrow account disbursements.

Apr 26

Apr 26 VIDEO: What to Look for in Lending Advertisements

Adam Witmer

In this Compliance Clip (video) Adam discusses the compliance rules to look out for when reviewing advertisements and marketing material related to loans. As the consequences of violating lending advertising compliance rules can be significant, it is imperative that financial institutions know what to look for in their lending marketing and advertising material. A transcript of this video is now available.

Apr 25
Apr 25 CFPB Works to Stop Junk Fees in Mortgage Servicing

Adam Witmer

Regulatory Update

On April 24, 2024, the CFPB published an edition of Supervisory Highlights describing the agency’s actions to combat junk fees charged by mortgage servicers, as well as other illegal practices. The CFPB found that servicers are charging illegal junk fees, such as prohibited property inspection fees; sending deceptive notices to homeowners; and violating loss mitigation rules that help struggling borrowers stay in their homes.

Apr 23
Apr 23 FinCEN Reminds Institutions to Remain Vigilant to Environmental Crimes

Adam Witmer

BSA, Regulatory Update

On April 22, 2023, coinciding with the Earth Day celebration, FinCEN issued a press release to remind financial institutions to remain vigilant in identifying and reporting suspicious activity related to environmental crimes. According to FinCEN, environmental crimes frequently involve transnational criminal activity related to several of FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) National Priorities, including corruption, fraud, human trafficking, and drug trafficking.

Apr 16
Apr 16 FinCEN Issues Notice on Use of Counterfeit U.S. Passport Cards in ID Theft and Fraud

Adam Witmer

BSA, Regulatory Update

On April 15, 2024, FinCEN, in close coordination with the Department of State’s Diplomatic Security Service (DSS), issued a Notice to financial institutions on fraud schemes related to the use of counterfeit U.S. passport cards. The Notice provides an overview of typologies associated with U.S. passport card fraud, highlights select red flags to assist financial institutions in identifying and reporting suspicious activity, and reminds financial institutions of their reporting requirements under the BSA.

Apr 15
Apr 15 CFPB Finds Credit Report Accuracy Requirements Violations

Adam Witmer

Regulatory Update

On April 8, 2024, the CFPB published an edition of Supervisory Highlights to share key findings from recent examinations about continuing accuracy problems in the credit reporting system. The CFPB found that consumer reporting companies failed to ensure the accuracy of credit reports and that furnishers failed to correct false or fraudulent information sent to consumer reporting companies.