http://www.bankersonline.com/topstory/topstory.html - Sep 20, 2014 10:37:03 PM - Nov 30, 2004 5:07:27 PM
September 19, 2014
- South Sudan-related OFAC designations Treasury has announced the designation of two individuals and the addition of their names to the SDN List with the SOUTH SUDAN identifier. Details have been posted in a BOL OFAC Update.
- Residential construction HUD and the Census Bureau have released the August 2014 new residential construction activity report. Building permits for privately owned housing, single-family housing, and single housing starts were down from the revised July numbers. Completions of privately owned housing were up from the July revised numbers.
- Santander Written Agreement The Federal Reserve Board has announced the execution of a Written Agreement with Santander Holdings, USA, Inc., of Boston, Massachusetts.
- Yellen on asset building In a presentation at the 2014 Assets Learning Conference of the Corporation for Enterprise Development, Federal Reserve Board Chair Yellen discussed the importance of asset building for low- and middle-income households. She noted the recently released Federal Reserve 2013 Survey of Consumer Finance revealed the 2013 median net worth reported by the bottom fifth of households by income was only $6,400 and the next fifth of households by income had median net worth of just $27,900. She indicated one of the lessons learned from the financial crisis is the importance of diversification and especially of possessing savings and other liquid financial assets to fall back on in times of economic distress.
- 2013 debit card transactions data A report has been published by the Federal Reserve with summary information on the volume and value, interchange fee revenue, certain issuer costs, and fraud losses related to debit card transactions in 2013. The report is the third in a series published every two years under the Electronic Fund Transfer Act. The Fed estimated debit-card fraud losses to all parties (merchants, cardholders, and issuers) to be $1.57 billion in 2013, with an average loss of approximately 8 basis points as a share of transaction value, up slightly from 2011. The median covered issuer's average fraud loss as a share of transaction value was 5 basis points, up slightly from 4.7 basis points in 2011. The median covered issuer had average fraud prevention and data security costs of slightly more than 1.4 cents per transaction.
- NCUA Board action The NCUA has issued a Board Action Bulletin reporting the actions taken at the September 18, 2014, meeting. The Board unanimously approved two items:
In addition, it was reported to the Board that, as of June 30, 2014, the Stabilization Fund reported for the first time a positive net position of $51.2 million, improving by $91.6 million from a $40.4 million deficit at the end of the first quarter.
- Expansion of the community charter of First Service Federal Credit Union to serve eight counties around Columbus, Ohio.
- A final rule repealing NCUA's regulation on unfair or deceptive advertising or practices in response to changes made by the Dodd-Frank Act and making other non-substantive changes to the rules to modify terminology and reflect changes in the agency's operations.
- CFPB auto finance hearing
A field hearing on auto financing was held in Indianapolis yesterday by the CFPB. Director Cordray issued prepared remarks, which were followed by testimony from consumer groups, industry representatives, and members of the public. A video of the hearing will be posted on the Bureau's Blog in the next several days.
September 18, 2014
- CFPB seeks oversight of nonbank auto lendersannounced a proposed rule that would give the Bureau oversight of larger nonbank auto finance companies for the first time at the federal level. The proposal would bring under CFPB supervision nonbank auto finance companies that make, acquire or refinance 10,000 or more loans or leases a year. About 38 such companies originate approximately 90 percent of nonbank auto loans and leases. Comments on the proposal will be accepted for 60 days following publication in the Federal Register. A supervision report that details the auto-lending discrimination that the Bureau has uncovered at banks was also released.
- FTC stops unauthorized payday loan scheme An order requested by the FTC has been issued by a U.S. District Court, temporarily halting on online payday lending scheme that allegedly bilked consumers out of tens of millions of dollars by trapping them into loans they never authorized and then using the bogus loans as a pretext to take money from their bank accounts. A filed by the FTC alleges alleges that Timothy Coppinger, Frampton (Ted) Rowland III, and a web of companies they owned or operated used personal financial information bought from third-party lead generators or data brokers to make unauthorized deposits of between $200 and $300 into consumers' bank accounts. Next, the defendants withdrew biweekly reoccurring "finance charges" of up to $90, without any of the payments going toward reducing the "loan's" principal. The defendants then contacted the consumers by phone and email, telling them that they had agreed to, and were obligated to pay for, the loan they never requested and misrepresented the true costs of the purported loans.
- CFPB sues online payday lender A U.S. District Court Judge, at the request of the CFPB, has temporarily ordered a halt to the operation and frozen the assets of an online payday lender, the Hydra Group, which the Bureau believes is running an illegal cash-grab scam. The CFPB's complaint alleges that the Hydra Group uses information bought from online lead generators to access consumers' checking accounts to illegally deposit payday loans and withdraw fees without consent. Falsified loan documents are then used to claim that the consumers had agreed to the phony online payday loans.
- FOMC statements and economic projection The Federal Reserve Board has released the statement, economic projections, materials, and policy normalization principle and plans issued by the Federal Open Market Committee (FOMC) after its September meeting.
- NCUA Report The September 2014 issue of the NCUA Report has been posted. The articles in this edition include:
- Beware of the Dangers of Indirect Auto Lending
- Chairman's Corner: Credit Unions Help Students Go Back to School
- Want to Reduce Risk at Your Credit Union? Start with Internal Controls
- School Partnerships Can Benefit Students and Credit Unions
- Be Prepared: Develop a Strong Business Continuity Plan
- Loans Grow in All Categories, Highest Year-over-Year Growth Since 2006
- In today's Federal Register Today's Federal Register includes the CFPB's publication of its previously announced (Top Stories, August 25) amendments to subpart B of Regulation E (12 CFR Part 1005). The final rule [79 FR 55970] extends a temporary provision that permits insured institutions to estimate certain pricing disclosures and makes certain clarifications and technical corrections to the regulation and commentary. The amendments will become effective November 17, 2014.
September 17, 2014
- Kingpin Act designations announced Treasury has announced the designation of eight Colombian nationals, identified as underbosses for the criminal group La Oficina de Envigado (La Oficina) based in Medellín, Colombia, under the Foreign Narcotics Kingpin Designation Act (Kingpin Act). As a result of this action, all assets of those designated today that are based in the United States or are in control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them. Information regarding the designations has been posted in a BOL OFAC Update.
- CFPB sues college over private loan program The CFPB has announced on its Blog and in a news release that it has filed a complaint against the for-profit college chain Corinthian Colleges, Inc. Director Cordray commented on the announcement in a press call. The Bureau alleges that the company induced tens of thousands of students to take out private loans to cover expensive tuition costs by advertising bogus job prospects and career services and used illegal debt collection tactics to strong-arm students into paying back those loans while still in school. A Special Notice was published for current and former students of the college.
- Settlement Administrator to contact National City Bank borrowers The Consumer Financial Protection Bureau has posted a notice to African-American and Hispanic borrowers of National City Bank who were charged higher prices on their mortgage loans than similarly-situated white borrowers between 2002 and 2008. The National City Consent Order Administrator will locate and send checks to minority borrowers who were overcharged. Over the next two weeks, the Administrator will mail packages to all eligible borrowers asking them to participate in the settlement. Participation in the program is free and eligible borrowers can submit a participation form by mail, e-mail or fax. The notice was also posted in Spanish. Borrowers who have questions can check the National City Consent Order Administrator website, which includes a Q&A and contact information.
- CFPB Tell Your Story—Predatory auto loans The Bureau has posted an article relating the story of a father of a serviceman about an auto loan program which utilized deceptive marketing and lending practices to target servicemembers. The story, which was reported to the Bureau under its "Tell Your Story" initiative, resulted in an investigation and an enforcement action against selected auto lenders.
- July TIC data Treasury has released the Treasury International Capital (TIC) data for July 2014. The sum total in July of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $57.7 billion. Of this, net foreign private inflows were $84.9 billion, and net foreign official outflows were $27.1 billion.
September 16, 2014
- US Bank settles HUD discrimination charge The Department of Housing and Urban Development has an agreement with U.S. Bank National Association, U.S. Bank subsidiary Red Sky Risk Services, LLC (formerly known as USB Lending Support Services, LLC), and one of U.S. Bank's loan officers, resolving allegations that they refused to refinance the mortgage of a Native American couple in Belcourt, North Dakota, because their property is located on a reservation. Under the terms of the agreement, U.S. Bank agreed to pay the couple's U.S. Bank credit card balance in the amount of $11,489.56, and to approve their application for a home mortgage refinance loan at the same interest rate and under other terms and conditions for which they originally applied.
- Changes to RRB ACH benefit payments Treasury and FRB Services have circulated a notice that, effective September 25, 2014, Treasury's Bureau of the Fiscal Service will begin processing Railroad Retirement Board (RRB) benefit payments at its Kansas City Financial Center under Disbursing Officer (DO) symbol 310. Currently, RRB payments are issued under the Philadelphia Financial Center DO symbol 303. The notice includes important information about changes to other key fields in the ACH records for RRB payments.
- September FedFlash The September 15, 2014, issue of FedFlash has been posted by FRB Services. This month's articles include information on:
- Holiday currency (we are so not ready for this!)
- Update on the Next Generation VPN Solution initiative
- New FedReceipts RTNs
- Check adjustments tips
- This weekend's Check Services operations freeze
- NCUA releases new guide and videos A new guide, "How to Start a Federal Credit Union," and two videos on protecting seniors from financial abuse have been released by NCUA. The videos, posted on the NCUA YouTube channel, are:
- CFPB Access to Checking Accounts forumforum will be held by the Consumer Financial Protection Bureau in Washington, DC, on October 8, 2014, from 8:30 a.m. to 2:00 p.m. The forum will discuss how checking account screening policies and practices impact consumers. The event will inform the dialogue around how the screening system works and how to improve the availability of information and products for consumers. This event is open to the public, but a reservation is required to attend.
- Lew issues Lehman Brothers anniversary statement Treasury Secretary Lew has issued a statement on the sixth anniversary of the Lehman Brothers' bankruptcy filing, the largest in U.S. history.
- Industrial Production and Capacity Utilization Report The Federal Reserve has released the August 2014 G.17 Industrial Production and Capacity Utilization Report. The index of industrial production edged down 0.1 percent in August, and the index for manufacturing output decreased 0.4 percent; the declines were the first for each index since January. The gains in July for both indexes were revised downward.
September 15, 2014
- Ukraine-related sanctions and lists updates The Department of the Treasury has announced expanded sanctions within the Russian financial services, energy, and defense or related materiel sectors. Treasury also announced the issuance of two new Ukraine-related General Licenses. In addition, the names of seven entities were added and seven existing entries were changed on the SSI List and the names of five entities were added to the SDN List. More information been posted in a BOL OFAC Update.
- Mortgage lender pays $35,000 for loan denial The Housing and Urban Affairs Department has that FirstBank Mortgage Partners, a Jackson, Tennessee-based mortgage lender, will pay $35,000 to settle allegations that it violated the Fair Housing Act when it denied a mortgage loan to a couple because one applicant was on maternity leave. The complaint was filed with HUD by a married couple who alleged that after FirstBank had approved their application and scheduled its closing, the lender learned that the wife was on maternity leave and notified the couple within 24 hours of the scheduled closing that the loan was denied. The couple alleged that they then lost the opportunity to buy a home in Virginia and also lost their current housing.
- Mortgage lead generator settles deceptive ad charges The Federal Trade Commission has announced that a court order has been issued requiring Intermundo Media, LLC, an Internet-based operation that finds potential borrowers for mortgage refinancing lenders, to pay a $500,000 civil penalty to settle charges it deceived consumers with ads that falsely claimed they could refinance their mortgages for free. The FTC complaint charged Intermundo Media with violating the Federal Trade Commission Act, the Mortgage Acts and Practices Advertising Rule ("MAP" Rule) and Regulation N, and the Truth in Lending Act and Regulation Z. Under the terms of the settlement, in addition to paying the $500,000 civil penalty, Intermundo Media is prohibited from:
- misrepresenting the terms and conditions of any financial product or service, and any term or condition of a mortgage credit product;
- disclosing, selling, or transferring the consumer data obtained through the Delta Prime Refinance lead generation service; and
- violating the FTC Act, the MAP Rule and Regulation N, and the Truth in Lending Act and Regulation Z.
- HSBC pays $550M to settle with Fannie and Freddie The Federal Housing Finance Agency, as conservator of Fannie Mae and Freddie Mac, has announced a settlement of $550 million with HSBC North America Holdings Inc., related companies and specifically named individuals (HSBC). The settlement resolves claims in the lawsuit FHFA v. HSBC North America Holdings Inc., et al. (S.D.N.Y.), alleging violations of federal, Virginia and District of Columbia securities laws in connection with private-label mortgage-backed securities purchased by Fannie Mae and Freddie Mac during 2005-2007. Under the agreement, HSBC will pay $374 million to Freddie Mac and $176 million to Fannie Mae.
- OCC workshops The OCC has announced it will host two workshops in Cleveland on October 28–29, 2014, for directors of national community banks and federal savings associations. The Credit Risk and Risk Assessment workshops are limited to the first 35 registrants. Registration and information is available on the OCC's site.
- NCUA Boot Camp registration A reminder has been posted by the NCUA that it is not too late to register for the final Leadership Book Camps to be held in Chicago and Philadelphia on September 20, 2014. Topics covered during the Boot Camps include:
Registration links are provided for attendance in Chicago and Philadelphia.
- Protecting Your Credit Union from Employment-Practices Lawsuits
- Marketing in the Digital Age
- Succession Planning and Passing the Baton
- Examination Modernization
- FTC comments on CFPB request on mobile financial services The Federal Trade Commission staff has responded to the CFPB's June 12, 2014, request for information (RFI) regarding the use of mobile financial services by consumers and its potential for improving the financial lives of economically vulnerable consumers.
- Final rule: large nonbank international money transfer providers A CFPB news release has announced approval of a final rule that allows it to supervise certain nonbank international money transfer providers for the first time. The rule, first proposed in January 2014, brings new oversight to approximately 25 larger nonbank international money transfer providers. A Fact Sheet on the rule was also released.