In its recently published Summer 2019 Newsletter, the Washington State Department of Financial Institutions (“DFI”) reported that it had interpreted the Servicemembers Civil Relief Act (“SCRA”) broadly to apply the SCRA’s 6% interest rate cap to a loan agreement entered into only by a servicemember’s spouse. Generally, the SCRA provides for a 6% interest
Federal Agencies
OCC and FDIC file joint amicus brief urging Colorado federal district court to reject Madden
By Jeremy T. Rosenblum on
The OCC and FDIC have filed a joint amicus brief in a Colorado federal district court arguing that the court should affirm the decision of a bankruptcy court holding that a non-bank loan assignee could charge the same interest rate the bank assignor could charge under Section 27(a) of the Federal Deposit Insurance Act, 12…
FinCEN Advisory Highlights Money Laundering Risks Related to Fentanyl Trafficking
By Terence M. Grugan on
On August 21, 2019, FinCEN issued an advisory (the “Advisory”) alerting financial institutions to various financial schemes and mechanisms employed by fentanyl and synthetic opioid traffickers to facilitate the illegal fentanyl trade and launder its proceeds.
As defined by the Centers for Disease Control and Prevention (“CDC”), “fentanyl is a synthetic (man-made) opioid 50 times…
SSN identity verification tool being developed; initial enrollment deadline of July 31
By Kim Phan on
The Social Security Administration (SSA) has announced the development of a portal that would allow financial institutions to join a planned real-time electronic system for verifying the identity of credit applicants. The new Consent Based Social Security Number (SSN) Verification (eCBSV) service will be an important tool in the fight against identity theft and other…
FHFA reverses position (again) on its constitutionality
By Alan S. Kaplinsky on
Posted in CFPB Monitor, Federal Agencies
In an interesting twist, the FHFA has informed the Fifth Circuit in Collins v. Mnuchin, that despite having previously advised the en banc court that it would not defend the FHFA’s constitutionality, it has reconsidered its position under the leadership of its new Director and will take the position going forward that the agency’s…
FCC’s call blocking plans could create problems for collections
By Daniel JT McKenna & John L. Culhane, Jr. on
Plans announced on May 15 by the FCC to empower voice service providers to offer more aggressive call-blocking programs could create significant problems for creditors and debt collectors. In addition to allowing providers to block unwanted calls by default, the FCC plans to allow providers to offer opt-in blocking in which a consumer can elect…
CFPB Director Kraninger to serve as FFIEC Chairman
By Barbara S. Mishkin on
Posted in CFPB Monitor, Federal Agencies
The Federal Financial Institutions Examination Council (FFIEC) announced that CFPB Director Kathy Kraninger became the Chairman of the FFIEC on April 1, 2019. Ms. Kraninger is the first CFPB Director to serve as FFIEC Chairman. Her two-year term runs until March 31, 2021.
The FFIEC chairmanship rotates among the FFIEC’s federal members for two-year terms…
Justice Department Obtains Its Largest Ever Settlement Against A Property Management Company for Alleged Violations of the Servicemembers Civil Relief Act
By Rachel R. Mentz on
The Justice Department announced in a March 15 press release that it has reached an agreement with property management company PRG Real Estate Management (PRG) and several related entities to settle claims that PRG violated the Servicemembers Civil Relief Act (SCRA) by obtaining evictions and money judgments against service-member tenants by filing affidavits that did…
Largest-Ever Crackdown Against Elder Fraud Led by the Department of Justice
By Kay Fitz-Patrick on
On March 7, 2019, the DOJ announced the largest coordinated sweep of elder fraud cases to date. Joined by the FBI and other federal and state partners, the DOJ held a press conference detailing the results of the coordinated effort. Coordinated law enforcement actions in the past year, they said, resulted in criminal cases against…
FFIEC Adopts Policy Statement Updating the Uniform Report of Examination
By Elanor A. Mulhern on
The Federal Financial Institutions Examination Council (FFIEC)—the interagency body tasked with setting uniform principles and standards for the examination of financial institutions by federal regulators, including the Consumer Financial Protection Bureau—has adopted a Policy Statement designed to streamline the information presented in examination reports (“ROE”). While the agencies represented by the FFIEC will make any…