Dec 30
Dec 30 CFPB Sues Three of the Largest Banks and Zelle for Failure to Protect Consumers from Fraud

On December 20, 2024, the CFPB sued the operator of Zelle and three of the nation’s largest banks, Bank of America, JPMorgan Chase, and Wells Fargo, for failing to protect consumers from widespread fraud on America’s most widely available peer-to-peer payment network. According to the CFPB, Early Warning Services, which operates Zelle, along with its owner banks rushed the network to market to compete against growing payment apps such as Venmo and CashApp, without implementing effective consumer safeguards.

Dec 30
Dec 30 Agencies Release CRA Asset-Size Thresholds for 2025

Adam Witmer

Regulatory Update, CRA

On December 20, 2024, the Federal Reserve Board and the FDIC issued the 2025 updated asset-size thresholds used to define "small bank" and "intermediate small bank" under their Community Reinvestment Act (CRA) regulations.

Dec 30
Dec 30 Treasury Releases Report on AI in Financial Services

Adam Witmer

Regulatory Update

On December 19, 2024, the Treasury released a report following the issuance of its 2024 Request for Information on the Uses, Opportunities, and Risks of Artificial Intelligence (AI) in Financial Services. The report summarizes key themes from respondent feedback and recommends several next steps.

Dec 24
Dec 24 Treasury Disrupts North Korean Money Laundering Network

Adam Witmer

Regulatory Update, BSA

On December 17, 2024, the OFAC sanctioned two individuals and one entity involved in a network that launders millions of dollars of illicit funds generated by the Democratic People’s Republic of Korea (DPRK) information technology (IT) workers and cybercrime to support the DPRK Government. The sanctions are part of OFAC’s ongoing efforts to disrupt the DPRK’s money laundering operations, which finance the regime’s unlawful weapons of mass destruction (WMD) and ballistic missile programs.

Dec 24
Dec 24 FinCEN Warns of Fraud Schemes Exploiting Its Name and Authority

Adam Witmer

Regulatory Update, BSA

On December 18, 2024, FinCEN issued an alert to raise awareness of fraud schemes abusing FinCEN’s name, insignia, and authorities for financial gain. These FinCEN-specific fraud schemes include scams that exploit beneficial ownership information reporting; misuse FinCEN’s Money Services Business Registration tool; or involve the impersonation of, or misrepresent affiliation with, FinCEN and its employees.

Dec 24
Dec 24 OCC Issues Cease and Desist Order Against USAA Federal Savings Bank

Adam Witmer

Regulatory Update

On December 18, 2024, the CFPB issued a comprehensive cease-and-desist order against USAA Federal Savings Bank to require the bank to correct a range of deficiencies. The order replaces prior cease-and-desist orders issued against the bank in 2019 and 2022.

Dec 24
Dec 24 CFPB Finalizes Residential PACE Financing Rule

Adam Witmer

Regulatory Update, Regulation Z

On December 17, 2024, the CFPB finalized a rule mandated by Congress that applies existing residential mortgage protections to Property Assessed Clean Energy (PACE) loans. PACE financing is financing to cover the costs of home improvements that results in a tax assessment on the real property of the consumer.

Dec 23
Dec 23 CFPB Finds Mortgage Companies Create Barriers for Homeowners After Death or Divorce

Adam Witmer

Regulatory Update

On December 17, 2024, the CFPB issued a report on the experiences of homeowners dealing with their mortgage company after divorce or the death of an original borrower. Federal rules require servicers to assist successor homeowners with managing or assuming existing mortgages, but complaints reveal significant delays and pressure to refinance at higher rates instead of supporting loan retention.

Dec 23
Dec 23 OCC’s Fall 2024 Semiannual Risk Perspective

Adam Witmer

Regulatory Update

On December 16, 2024, the CFPB issued a special edition of its Supervisory Highlights describing a range of unlawful activities identified by CFPB examiners across student loan markets. The report covers violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing.

Dec 23
Dec 23 FDIC Updates Its Consumer Compliance Examination Manual

Paula Parras

Regulatory Update

On December 13, 2024, the FDIC made updates to several sections of its Consumer Compliance Examination Manual. The Consumer Compliance Examination Manual is a primary resource and reference tool for FDIC compliance examination staff to use in support of conducting Consumer Compliance and Community Reinvestment Act examinations and other supervisory activities.