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FDIC Updates Mortgage Servicing Technical Videos

Mortgage Servicing Rules – The FDIC published FIL-79-2021 notifying institutions that they have updated the technical assistance videos on the mortgage servicing rules. The information in the five videos is intended as a high-level overview to help FDIC-supervised institutions understand and comply with the mortgage servicing rules.

CFPB Updates EFT FAQ'S

REG E FAQs – The CFPB updated many of its Electronic Fund Transfers Frequently Asked Questions to address questions received by the CFPB.

Buy Now, Pay Later – The CFPB issued orders to five companies offering “buy now, pay later” (BNPL) credit, to collect information on the risks and benefits of these loans. The CFPB is concerned about accumulating debt, regulatory arbitrage, and data harvesting in a consumer credit market already quickly changing with technology.

Community Reinvestment Act - The OCC issued its final rule to officially rescind its 2020 CRA rule and replacing it with rules the agency adopted jointly with the Federal Reserve and FDIC in 1995. Banks will be required to comply with the rule by Jan. 1, 2022, although the rule’s public file and public notice provisions compliance date is extended to April 1, 2022.

FinCEN Seeks Comment on AML/CFT regulations

BSA Regulation and Guidance Review - FinCEN issued a request for information soliciting comment on ways to streamline, modernize, and update the anti-money laundering and countering the financing of terrorism regime of the United States. FinCEN seeks comment on ways to modernize risk-based AML/CFT regulations and guidance, issued pursuant to the Bank Secrecy Act, so that they, on a continuing basis, protect U.S. national security in a cost-effective and efficient manner.

FinCEN Issues Fines for BSA Violations

$8 Million CMP for BSA Violations – FinCEN assessed the penalty on a bank that admitted that it willfully failed to implement and maintain an effective anti-money laundering (AML) program that was reasonably designed to guard against money laundering. The bank also admitted that it willfully failed to report hundreds of suspicious transactions to FinCEN involving illegal financial activity by its customers and processed by, at, or through the bank even after the bank became aware that certain customers were subjects of criminal investigations. The violations occurred from at least 2015 through 2019 and caused millions of dollars in suspicious transactions to go unreported to FinCEN in a timely and accurate manner, including transactions connected to tax evasion, illegal gambling, money laundering, and other financial crimes.

From The Federal Reserve

Safe and Sound Practices for Counterparty Credit Risk Management - The Federal Reserve issued a guidance reminder on the supervisory expectations in Interagency Supervisory Guidance on Counterparty Credit Risk Management, and to make firms and industry participants aware of practices that may be inconsistent with safe and sound banking practices.

NCUA Issues Letter on Cybersecurity Preparedness

Automated Cybersecurity Evaluation Toolbox – The NCUA issued Letter 21-CU-15 encouraging credit unions to use and implement the maturity assessment to determine its information and cybersecurity preparedness level. While credit unions are not required to use the Toolbox, doing so can provide insight into steps a credit union may consider to strengthen its overall security posture.

NCUA Board Approvals – During its open meeting, the NCUA approved a final rule creating a simplified measure of capital adequacy for complex credit unions, a final rule permitting federal credit unions to purchase mortgage servicing rights from other federally insured credit unions, and a final rule amending the NCUA’s subordinated debt rules to facilitate investments from the U.S. Treasury’s Emergency Capital Investment Program.

NCUA Encourages Diversity Self-Assessment

Diversity Self-Assessment – The NCUA is encouraging credit unions to complete the Voluntary Credit Union Diversity Self-Assessment before January 15, 2022. The Self-Assessment is a valuable tool for credit unions that want to commit to the principles of diversity, equity, inclusion, and belonging. The Self-Assessment is voluntary, and not required.

Relationships with Third Parties that Provide Services Related to Digital Assets – 21-CU-16 was issued to provide clarity about credit unions ability to establish relationships with third-party providers that offer digital asset services to members, provided certain conditions are met. This includes third-party provided services to allow members to buy, sell, and hold uninsured digital assets with the third-party provider outside of the credit union.

From The Cybersecurity and Infrastructure Agency

Apache Log4j Vulnerability Guidance - The Cybersecurity and Infrastructure Security Agency is warning institutions about threats regarding exploitation of a critical remote code execution vulnerability affecting Apache Log4j software. This software is used in several consumer and enterprise services, websites and applications, as well as in operational technology products, to log security and performance information.

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