The OCC has issued a new bulletin and the FDIC has issued new supervisory guidance directed to their supervised institutions to address “authorize positive, settle negative” (APSN) overdraft fee practices. The OCC bulletin also addresses non-sufficient funds (NSF) fee practices. Based on the bulletin and guidance, it would appear that the OCC and FDIC share the CFPB’s apparent view that APSN fees are unfair regardless of how clearly and conspicuously they are disclosed to consumers. … Continue Reading
New issue of FDIC Consumer Compliance Supervisory Highlights looks at referral arrangements, trigger leads, servicemember protections, fair lending compliance
By John L. Culhane, Jr. on
Posted in FDIC Supervision
In the March 2023 issue of Consumer Compliance Supervisory Highlights, the FDIC discusses consumer compliance issues identified by its examiners during supervisory activities conducted in 2022 involving referral arrangements, trigger leads, servicemember protections, and fair lending compliance. The issue also looks at complaint trends.
Compliance Issues. Key findings include:
Real Estate Settlement Procedures Act Section 8: Referral Arrangements. … Continue Reading
CFPB Director Rohit Chopra addresses FDIC deposit insurance and the banking industry
By John Georgievski on
On April 11, 2023, Consumer Financial Protection Bureau Director Rohit Chopra spoke with the Washington Post regarding the banking industry after the failure of Silicon Valley Bank. Director Chopra, who is also a board member of the Federal Deposit Insurance Corporation, focused his messaging on the need to better educate consumers regarding when their deposits are and are not insured by the FDIC. … Continue Reading
Banking Industry Reacts to White House Endorsement of New Regulations for Banks
By Scott A. Coleman & Sarah B. Dannecker on
On March 30, 2023, the White House endorsed several proposals to strengthen regulatory requirements for the banking industry in the wake of the Silicon Valley Bank and Signature Bank failures. This comes on the heels of President Biden’s March 13, 2023 remarks where he noted his intention to ask Congress and the banking regulators to “strengthen the rules for banks” to decrease the likelihood of similar failures in the future.… Continue Reading
CFPB consent order shuts down mortgage lender focused on servicemembers
By Brian Turetsky on
On February 27, 2023, the Consumer Financial Protection Bureau (CFPB) entered into a consent order against RMK Financial Corporation d/b/a Majestic Home Loan (RMK), a California-based mortgage lender, based on allegations that it falsely implied government endorsement of its home loans in its marketing. The consent order, which addressed numerous alleged statutory and regulatory violations and a failure to comply with an earlier consent order, prohibits RMK from engaging in any mortgage lending activities (or from receiving remuneration from mortgage lending) going forward, effectively shutting it down.… Continue Reading
FDIC Keeps Up the Pressure on Misleading Representations about Deposit Insurance
By Mindy Harris on
Earlier this month, the Federal Deposit Insurance Corporation (FDIC) issued cease-and-desist letters to a cryptocurrency exchange and a fintech, demanding that each of these entities immediately stop making false and misleading statements about FDIC coverage of their financial products. The FDIC also issued cease and desist letters to two marketing websites, demanding that they remove false and misleading statements about FDIC insurance coverage with respect to the cryptocurrency exchange.… Continue Reading
FDIC extends comment period for proposed signage and advertising rule
By Mindy Harris on
Posted in FDIC, Regulatory and Enforcement
The FDIC has announced that it is extending by 45 days the comment period for proposed changes to its signage and advertising rule. Several banking trade groups sent a letter to the FDIC requesting the 45-day extension. Originally set for February 21, the comment deadline is extended to April 7, 2023.… Continue Reading
Bank trade groups seek more time to comment on FDIC proposed signage and advertising rule
By Mindy Harris on
Posted in FDIC, Regulatory and Enforcement
In a letter sent earlier this month, the Bank Policy Institute, the American Bankers Association and the Independent Community Bankers of America (the “trade groups”) have asked the FDIC for more time to comment on the agency’s proposal, published in the Federal Register on December 21, 2022, to update its existing regulations governing use and misuse of the FDIC’s name, logo and official sign, and adding further detail to rules regarding misrepresentation of insured status.… Continue Reading
Federal banking agencies issue joint statement on crypto-asset risks
By Scott A. Coleman on
The Federal Reserve Board, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have issued a joint statement on crypto-asset risks to banking organizations. The term “crypto-asset” refers to any digital asset implemented using cryptographic techniques.
The statement begins with the agencies’ observations that “[t]he events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector” and that “[t]hese events highlight a number of key risks associated with crypto-assets and crypto-asset sector participants that banking organizations should be aware of.”… Continue Reading
Proposed rule continues FDIC focus on use and misuse of FDIC name and logo; CFPB Director Chopra applauds
By Mindy Harris on
Posted in FDIC, Regulatory and Enforcement
On December 13, 2022, the FDIC issued a request for comment on a proposal to modernize the regulations governing use of the FDIC’s official signage and advertising of FDIC-insured status by insured depository institutions (IDIs), and to clarify regulations issued earlier in 2022 regarding misrepresentations of deposit insurance coverage. The proposed rule was published in the Federal Register on December 21, 2022 and comments are due no later than February 21, 2023.… Continue Reading