Weekly Rewind...News from Your Regulators!

Compliance Services Group is here for your regulatory updates.

Stay tuned for our first series of blogs and videos addressing how account "bonuses" can affect your institution and your customers. We will be going through the ins and outs of Truth in Savings as it applies to bonuses, rewards, and other offers to your customers. Don't miss out...Follow us on LinkedIn or Like us on Facebook to make sure you get all the latest information!


Streamlined CDFI Certification – Credit unions seeking certification as community development financial institutions (CDFIs) can apply for a streamlined qualification process at the NCUA between Sept. 12 and Oct. 15. Credit unions must be federally insured and hold the NCUA’s low-income credit union designation to receive CDFI certification. Those certified are eligible to apply for financial and technical assistance awards from the Treasury CDFI Fund to support their work in low-income and underserved people and communities. (Published August 25, 2021)


FRS, FDIC, and OCC releases FinTech Due Diligence info for Community Banks

Fintech Due Diligence – Along with the FDIC & OCC, the Federal Reserve released a guide intended to help community banks assess risks when considering relationships with fintech companies. The guide covers six key areas of due diligence that community banks can consider when exploring arrangements with fintech companies: business experience and qualifications, financial condition, legal and regulatory compliance, risk management and control processes, information security, and operational resilience.


Technical Notice for OFAC Data Files – The US Department of Treasury is initiating the annual renewal of the public certificate securing www.treasury.gov website, including OFAC sanctions list downloads. The existing certificate (expiring September 9, 2021) will be replaced on September 1, 2021, at 9 PM. This process will take roughly 3-6 hours for the replacement certificate to be distributed worldwide. If your application pins or otherwise trusts the serial number of the existing certificate as part your application functionality, you may need to update your configuration to trust the renewed certificate. (Published August 27, 2021)

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Proposed Judgment Against Debt Collector – The CFPB announced a proposed judgment against a debt collection company in the amount of a $850,000 CMP and a requirement to establish reasonable policies and procedures to avoid future violations. In its complaint, the CFPB alleges the following conduct: failing to maintain reasonable policies and procedures regarding the accuracy and integrity of furnished information to consumer-reporting agencies, failing to properly handle consumer disputes, failing to properly investigate consumer disputes alleging identity theft and continuing to report information before a determination was made as to the accuracy of the consumer’s dispute, and collecting debts without a reasonable basis to assert the consumer owed the debt. (Published August 27, 2021)

News from the CFPB

Credit Card Agreement Submissions – The CFPB issued new technical specifications for complying with credit card agreement and data submission requirements under TILA and the CARD Act (Regulation Z). Credit card issuers will use the Bureau’s “Collect” website to submit the following data to the Bureau, starting with listed submission dates and continuing forward: (1) Terms of Credit Card Plans (TCCP) Survey data (for the February 14, 2022 deadline), (2) quarterly credit card agreement submissions (for the January 31, 2022 deadline), and (3) annual reports related to college credit card marketing agreements and data (for the March 31, 2022 deadline). (Published August 20, 2021)


Consumer Compliance Examination Manual Update – The FDIC updated the Examination Manual to reflect changes in advertising rules and disclosure and recordkeeping requirements under the Fair Housing Act and to remove a reference to a “Reasons for Denial” reporting requirement that no longer exists. (Published August 16, 2021)

Enforcement Actions - The FDIC issued nine Orders and one Notice of Charges in July 2021. The administrative enforcement actions consisted of three Orders to Pay Civil Money Penalties, two Orders of Prohibition from Further Participation, three Section 19 Orders, one Order Terminating Consent Order, and one Notice of Charges. (Published August 27, 2021)

Determinants of Losses on Construction Loans – The FDIC published a working paper focused on construction loan losses and potential drivers. The paper shows close ties between loss rates and certain loan characteristics as well as market conditions both at and after origination. The report also states that the risk of higher losses on construction loans is influenced not only by the originating bank’s behavior but also by the behavior of other local lenders in the market. (Published August 25, 2021)

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