Welcome to the Weekly Rewind for the week of 8/9-8/13!

From the CFPB:

Mortgage Servicing Observations – The CFPB published a report on its observations of 16 mortgage services in response to the COVID-19 Pandemic. The report found that generally, mortgage servicers “managed the anticipated high call volume without significant increases in metrics such as time to answer, handle times, or call abandonment rates.” The CFPB encouraged servicers “to enhance their communication capabilities and outreach efforts to educate and assist all borrowers in resolving delinquency and enrolling in widely available assistance and loss mitigation options. The CFPB also encourages servicers to ensure that their compliance management systems include robust measures to identify and mitigate fair lending risk.”  (Published August 10, 2021)

From the FDIC: 

Pandemic Examination Approach Feedback – The FDIC is requesting feedback on what worked well for off-site examinations to see what lessons they can learn about streamlining and improving the efficiency and efficacy of examinations. (Published August 12, 2021)

From the FFIEC:

Authentication and Access to Financial Institution Services and Systems – The Federal Financial Institutions Examination Council issued guidance that provides financial institutions with examples of effective authentication and access risk management principles and practices for customers, employees, and third parties accessing digital banking services and information systems.

The guidance:

·        Highlights the current cybersecurity threat environment including increased remote access by customers and users, and attacks that leverage compromised credentials; and mentions the risks arising from push payment capabilities.

·        Recognizes the importance of the financial institution’s risk assessment to determine appropriate access and authentication practices to determine the wide range of users accessing financial institution systems and services.

·        Supports a financial institution’s adoption of layered security and underscores weaknesses in single-factor authentication.

·        Discusses how multi-factor authentication or controls of equivalent strength can more effectively mitigate risks.

·        Includes examples of authentication controls, and a list of government and industry resources and references to assist financial institutions with authentication and access management. (Published August 11, 2021)

From the FHFA:

Rental Payment History in FNMA’s Underwriting Process – The Federal Housing Finance Agency announced that Fannie Mae will consider rental payment history in its risk assessment processes. With the update to Fannie Mae's systems, future borrowers will have the benefit of a positive rental payment history being included in an underwriting decision. There is no additional burden – either for the borrower or for the lender – to make use of this feature. (Published August 11, 2021)

From the FRB:

Enforcement Actions – The Federal Reserve announced two flood insurance violation enforcement actions. (Published August 12, 2021)

From the FTC:

Debit Card Fees and Routing – The FTC is urging the Federal Reserve System to clarity and strengthen the implementation of the debit card fee and routing reforms to the Electron Fund Transfers Act made under the Dodd-Frank Reform Act. FTC staff also called for rules that would prohibit debit card networks from exploiting an issuer’s position by paying incentives to that issuer based on how electronic debit transactions are routed by merchants using that issuer’s debit cards. According to the FTC staff comment, the Fed should “adopt revisions that ensure that debit card networks do not create incentives for issuers to evade Regulation II’s clear mandate that there be two unaffiliated networks available for each type of debit transaction, with each network a commercially reasonable alternative for merchants.”  (Published August 12, 2021)

From the NCUA:

Supplier Diversity Webinar – The NCUA’s Office of Minority and Women Inclusion will host a webinar on supplier diversity beginning at 2 p.m. Eastern on Tuesday, August 31.

The webinar will discuss why supplier diversity is important and how to implement a program. This 60-minute webinar will also:

·        Debunk the myths and biases keeping credit unions from starting supplier diversity programs;

·        Distinguish between performative versus representational communications in supplier diversity;

·        Describe what credit unions can do to begin supplier diversity programs; and

·        Describe how to measure a credit union’s supplier diversity efforts and effectiveness.

(Published August 11, 2021)

Implementation of Modernized Systems – The NCUA published 21-CU-08 informing credit unions that they will begin transitioning to several new modernized applications. These efforts include the implementation of emerging and secure technology that supports the NCUA’s examination, data collection, field of membership, and reporting efforts. These new applications will streamline processes and procedures and provide significant benefits to credit union users. (Published August 12, 2021)

Chairman Harper Comments – During a speech at the Defense Credit Union Council Annual Conference, NCUA’s Chairman Todd Harper stated “In my view, the overdraft fee practices of some federal credit unions are fundamentally detrimental to members and inconsistent with the definition of ‘federal credit union’ in the Federal Credit Union Act: ‘a cooperative association organized ... for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes.’ Overdraft fee programs can make it harder for members to regain their financial footing, and households hit by persistent overdraft fees often have their checking accounts closed. This, together with Black and Hispanic consumers being disproportionately harmed by overdraft fees, leads to financial exclusion, not financial inclusion.”  (Published August 12, 2021)

From the Washington DFI:

DFI Receives High Marks in Accreditation Review - The Washington State Department of Financial Institutions (DFI) recently received bank and mortgage re-accreditation from the Conference of State Bank Supervisors (CSBS), Credit Union re-accreditation from the National Association of State Credit Union Supervisors (NASCUS) and Money Services Businesses (MSB) accreditation from CSBS. Washington’s DFI is one of only three states to have received MSB accreditation. (Published August 11, 2021)

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James McKinney

Compliance Services Group


(360) 943-7137

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