All in Regulatory Update

CFPB Reports High Fees on Student Banking Products

Adam Witmer
Regulatory Update

On October 13, 2022, the CFPB published a report on terms and fees associated with banking products marketed in partnership with colleges to students. The CFPB questions the compliance of some marketing deals between colleges and financial institutions to the Department of Education rules. In relation to this, the Department of Education issued guidance to schools on the requirements for college-sponsored banking arrangements.

DOJ Announces $1.3 Million Settlement with Evolve Bank

Adam Witmer
Regulatory Update, Fair Lending

On September 29, 2022, the DOJ announced that it has secured an agreement to resolve allegations that Evolve Bank & Trust engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019. Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers and will also pay a $50,000 civil penalty.

Das Discusses BOI Reporting Rule

Adam Witmer
Regulatory Update, BSA

On October 12, 2022, FinCEN Acting Director Himamauli Das spoke at the ACAMS AML Conference where he talked about FinCEN’s implementation plan for the Corporate Transparency Act (CTA), particularly the recently issued final rule on beneficial ownership information reporting requirements. Das highlighted the importance of implementing an effective AML/CFT compliance program and how it helps the agency find and stop illicit activities.

FinCEN and OFAC Take Action Against Bittrex, Inc.

Adam Witmer
Regulatory Update, BSA

On October 11, 2022, FinCEN and OFAC announced in separate press releases that they have taken action against Brittex, Inc., a virtual asset service provider, for willful violations of the BSA and for or apparent violations of sanctions against Cuba, Ukraine-related, Iran, Sudan, and Syria. FinCEN assessed a total of $29,280,829.20 civil money penalty against Brittex, $24,280,829.20 of which will be remitted to OFAC.

CFPB Reminds of the Reconsideration of Value Process

Adam Witmer
Regulatory Update

On October 6, 2022, the CFPB published an article highlighting that mortgage borrowers can challenge inaccurate appraisals through the reconsideration of value (ROV) process. According to the article, homebuyers and homeowners can ask for a lender to reconsider a home valuation the consumer believes to be inaccurate. ROV may be requested when borrowers observe factual or other errors or omissions, inadequate comparable properties, or prohibited bias during appraisal.

OCC’s 2023 Bank Supervision Operating Plan

Adam Witmer
Regulatory Update

On October 6, 2022, the OCC released its bank supervision operating plan for fiscal year 2023, which begins on October 1, 2022 and ends on September 30, 2023. The plan provides the foundation for policy initiatives and for supervisory strategies as applied to individual national banks, federal savings associations, federal branches, federal agencies, and technology service providers. The OCC staff will use this plan to guide their supervisory priorities, planning, and resource allocations.

CFPB Issues Order Against Choice Money for Remittance Violations

Adam Witmer
Regulatory Update, Regulation E

On October 4, 2022, the CFPB took action against Choice Money Transfer (Choice Money) for multiple violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act (EFTA), such as failing to accurately disclose important prepayment information to remittance senders. Choice Money is a nonbank remittance provider incorporated in New York and headquartered in New Jersey. It currently handles approximately 500,000 transfers a month.

FRB Issues Final Rule on Debit Card Transactions

Adam Witmer
Regulatory Update

On October 3, 2022, the Federal Reserve Board issued a final rule that amends Regulation II to specify that debit card issuers should enable at least two payment card networks to process all debit card transactions, including "card-not-present" transactions, such as online payments. It also clarifies the requirement that debit card issuers ensure that at least two unaffiliated networks have been enabled to process a debit card transaction. The final rule will be effective July 1, 2023.

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