CFPB Monitor

DECEMBER 28, 2020

The FDIC has issued a final rule setting forth the conditions it will impose and the commitments it will require to approve a deposit insurance application from an industrial bank or industrial loan company (collectively, ILC) whose parent company is not subject to consolidated supervision by the Federal Reserve Board (FRB).

FDIC 78

FDIC Industry Policies Company 78

PYMNTS

FEBRUARY 18, 2020

LendingClub provides personal lending online, and it wants access to funding that is more stable and not as expensive. The bank is one of a few smaller lenders that has teamed up with FinTechs who need services only an FDIC-regulated institution can provide. Radius is based in Boston and has in the neighborhood of $1.4

Fintech 242

Fintech FDIC Boston Lending 242

CFPB Monitor

JUNE 4, 2020

As the federal regulator with supervisory authority over (non-Federal Reserve member) state banks and savings associations, the FDIC continues to play an important role in the consumer protection arena. ET, PLI will offer a one-hour briefing, “Consumer Protection: What’s Happening at the FDIC.” Guidance on small-dollar lending.

FDIC 78

FDIC Groups Lending Industry 78

CFPB Monitor

JUNE 18, 2019

Last week, the FDIC published its Consumer Compliance Supervisory Highlights that provides observations about its consumer compliance supervision activities in 2018. The FDIC’s anonymized exam findings include: Overdraft Programs. Regulation E – Mistakes Made in the Consumer Liability/Error Resolution Process.

FDIC 60

FDIC Compliance Regulation Training 60

PYMNTS

SEPTEMBER 30, 2020

The House committee held a hearing on the idea after Acting Comptroller of the Currency Brian Brooks in July proposed a new special purpose national banking charter for payments companies. FDIC), the states and the courts. However, the banking industry doesn’t like that one bit. “We Specific Concerns .

Regulation 349

Regulation National System Industry 349

CFPB Monitor

MAY 6, 2021

The OCFR claims that the Bank’s failure to hold the required lending licenses makes the loans unenforceable and prohibits Atlanticus/Fortiva from collecting any amounts on the loans. In addition, legal challenges to the OCC and FDIC “ Madden -fix” rules and the OCC’s “true lender” rule continue to create uncertainty for participants.

Maryland 78

Maryland Lending Missouri FDIC 78

Gonzobanker

JUNE 14, 2023

Cross River Bank recently found itself in hot water with the FDIC when the agency declared that the bank engaged in unsafe or unsound banking practices in relation to its compliance with fair lending laws and regulations, specifically the Equal Credit Opportunity Act and the Truth-in-Lending Act. If only it were so easy.

Compliance 109

Compliance FDIC Strategy Fintech 109

CFPB Monitor

AUGUST 1, 2018

The regulation defines a brokered deposit as “any deposit that is obtained, directly or indirectly, from or through the mediation or assistance of a deposit broker.” The FDIC has not yet responded. Congressmen Luetkemeyer and Tipton assert that the FAQ is inconsistent with the definition of “deposit broker” under 12 C.F.R.

FDIC 68

FDIC Regulation Innovation Resources 68

Abrigo

MARCH 2, 2023

The company has estimated that the impact of its system meltdown during bad weather will cost it as much as $825 million. Community banks and the entire banking industry face downside risks from inflation, rising market interest rates, and continued geopolitical uncertainty, the FDIC said recently in its quarterly report.

Technology 195

Technology Lending Community Software 195

Jeff For Banks

MAY 20, 2017

And regulators are getting anxious. Today, I read an American Banker article on how a multi-billion dollar bank is going to ramp up its business lending. Reading between the lines, this bank is likely over the CRE guidance levels, and were probably getting grief from their regulators about it. Look at technology companies.

Lending 60

Lending Regulation Community Community Bank 60

FICO

MAY 25, 2023

Home Blog Feed test AI Development Can’t Be Paused—But It Can Be Regulated Since Generative AI is here to stay, ChatGPT’s base grew by 9,900% in 60 days, with 1.8 But it is possible to mitigate further wrongs by regulating artificial intelligence, and I believe effective proposed regulation should start from organizations using AI.

Regulation 52

Regulation San Diego Analytics blockchain 52

Abrigo

SEPTEMBER 5, 2023

unsecured lending is bad rather than unsecured lending should only be extended to high pass risk rated credit). As the FDIC said recently: Exceptions to policy should be few in number and properly justified, approved, and tracked. Get details in "A guide to implementing credit policy."

Policies 195

Policies Lending Risk Management Examples 195

Independent Banker

JULY 31, 2022

Locality Bank, a digital-first community bank serving south Florida that opened in January, is run by industry veterans with such successful track records that regulators signed off on their application for a charter in less than a year. We saw a problem with PPP when local companies were unable to be served properly. Filling a need.

Florida 91

Florida Community Bank Community FDIC 91

CFPB Monitor

APRIL 15, 2016

The interest of federal regulators in marketplace lending continues to grow. In July 2015, the Treasury Department issued a request for information regarding online marketplace lending and, in February 2016, the FDIC published an article highlighting the risks for banks that partner with marketplace lenders. .

Lending 60

Lending FDIC Washington Financial Technology 60

CFPB Monitor

OCTOBER 9, 2018

We have been following closely efforts by state regulators, state legislatures and the courts to restrict, or in some cases prohibit, bank model lending programs, so the recent guidance from the Vermont Department of Financial Regulation (“Department”) is welcome news.

Vermont 68

Vermont FDIC Regulation Training 68

PYMNTS

OCTOBER 24, 2019

The Office of the Comptroller of the Currency (OCC) debuted a special purpose charter in 2016 that would have given FinTechs a leg up on competing with traditional financial services companies. But Federal Deposit Insurance Corporation (FDIC) coverage — which protects deposits — proved a sticking point this week.

Fintech 101

Fintech FDIC New York National 101

FICO

DECEMBER 13, 2019

The most prominent villain for fintech companies is regulation. And so it’s easy to see why a fintech company — believing fully in the virtue of its mission and faced with a litany of illogical and intractable regulations — might just say "F*ck it, we're doing it anyways." and China). A Prediction for the 2020s.

Regulation 52

Regulation Fintech Lending Branding 52

CFPB Monitor

MARCH 30, 2020

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes the following key provisions that affect financial institutions and regulation of financial institutions: Section 4003 – Emergency Relief and Taxpayer Provisions. Section 4011 – Temporary Lending Limit Waiver. Section 4008 – Debt Guaranty Authority.

Regulation 122

Regulation United States Community Bank National 122

American Banker

DECEMBER 13, 2019

The plan would increase lending and transparency, the regulators say; the company says the rule unfairly lumps together digital wallets and prepaid cards.

FDIC 50

FDIC Lending Regulation Cards 50

PYMNTS

NOVEMBER 23, 2020

While many digital-first companies springboard from payments into lending, Figure Technologies , a FinTech focused on home improvement, debt consolidation and retirement products that leverage blockchain protocols, is branching out from lending into payments. Looking Toward The Blockchain . The Charter Advantage .

National 215

National blockchain Montana Lending 215

PYMNTS

AUGUST 14, 2019

That means small business owners are forced to rely on financial services products designed for the consumer, even though an SMB’s needs are more complex and need to scale as a company grows. Companies with an annual turnover below $50 million are particularly affected by the trend.

Lending 122

Lending Cards FDIC Capital 122

Jeff For Banks

AUGUST 14, 2022

The FDIC's quarterly Supervisory Insights for Summer 2011 had a list! Imagine the community bank that is experienced in lending to fuel oil businesses in or near its markets because it's comfortable using trucks, tanks, and oil inventory as collateral. Let bankers determine if lending to this industry or that is risky.

Operations 78

Operations Lending FDIC Industry 78

PYMNTS

AUGUST 16, 2019

Axos Bank parent company Axos Financial has rolled out out commercial banking operations across new markets in the U.S., “The nation’s two largest metropolitan areas are home to a majority of our commercial lending and banking clients,” said Greg Garrabrants, president and CEO of Axos, in a statement.

Los Angeles 101

Los Angeles New York FDIC Lending 101

American Banker

JULY 6, 2020

Small banks have long led the campaign against industrial loan companies, arguing they can be used to violate the separation of banking and commerce. But now the industry’s heavyweights are also taking a hard line in response to an FDIC proposal that would give tech companies a smoother path into the lending business.

FDIC 60

FDIC Lending Industry Company 60

PYMNTS

APRIL 29, 2019

Last week Robinhood, the company behind the free mobile trading app, filed an application to open an online bank that would be FDIC insured and offer high rates on savings and low rates on credit cards. Marcus, the online lending unit of Goldman Sachs, uses Infosys for its core banking platform, the report noted.

FDIC 112

FDIC New York Mobile Online 112

PYMNTS

JANUARY 9, 2018

With big banks pulling back from small and medium-sized business (SMB) lending in the wake of the global financial crisis, the market was ripe for someone else to fill the credit gap. Community banks approved 49 percent of SMB loan applications in November, according to the latest data from the Biz2Credit Small Business Lending Index.

Community Bank 131

Community Bank Community Fintech Lending 131

Jeff For Banks

JUNE 2, 2023

The old borrow short, lend long strategy. I want to read to you the FDIC’s conclusion from their An Examination of the Banking Crisis of the 1980’s and Early 1990’s. Third, the regulators need adequate financial resources. My lesson learned to the regulators, read your past lessons learned. What caused a dot-com bubble?

FDIC 78

FDIC Community Bank Regulation Lending 78

BankBazaar

APRIL 19, 2023

What have the regulators done? After the collapse, the governments and regulators across the world are checking for SVB exposure in their corporate and banking sectors. While the government is trying its hard to pacify investors’ fears, regulators are trying to find new buyers to take over SVB’s domestic lending portfolio.

US 78

US United States FDIC Regulation 78

CFPB Monitor

OCTOBER 1, 2018

1010.100(d) — and their subsidiaries which are subject to the jurisdiction of the OCC, Federal Reserve, FDIC, or NCUA. corporations, partnerships, sole proprietorships, and trusts) to facilitate the purchases of property and casualty insurance policies, otherwise known as premium finance loans or premium finance lending.

Regulation 60

Regulation FDIC Policies Compliance 60

PYMNTS

OCTOBER 30, 2019

APIs also boost visibility into foreign exchange rates, Western Union said, while allowing the FI to offer business clients “the latest level of regulated European internet security,” it said in its announcement. Open Banking Targets Corporates.

Lending 102

Lending Fintech America Data 102

PYMNTS

OCTOBER 17, 2017

ILCs are used to form industrial loan companies, better known as industrial banks. An industrial bank is an FDIC-insured depository institution that is generally subject to the same banking laws and regulations as any other bank charter type, with the important exception of the Bank Holding Act of 1956.

Industry 108

Industry Fintech FDIC Community Bank 108

American Banker

OCTOBER 5, 2016

For regulators to develop a unified framework for fintech companies to operate in, they first have to come to a consensus.

Regulation 76

Regulation Fintech Operations Company 76

PYMNTS

AUGUST 4, 2020

Those ecosystems will leverage the trust that consumers have placed in traditional financial industry players and tech companies of all sizes – including Big Tech , of course. In an announcement, the bank said it would work with Google to debut a co-branded, FDIC-insured, digital-only bank account next year.

Google 298

Google Digital Banking Course Branding 298

CFPB Monitor

JANUARY 19, 2022

The lawsuit represented the CSBS’s third challenge to the OCC’s authority to issue special purpose national bank (SPNB) charters to non-depository fintech companies or to uninsured deposit-taking fintechs. will apply for approval from the Federal Reserve Board to become a bank holding company under Section 3 of the Bank Holding Company Act.

Technology 78

Technology National FDIC Fintech 78

PYMNTS

OCTOBER 13, 2016

So when your financial tech company shares a similar name with the cabbage variety, you know there are many layers involved. Kabbage is a data and technology platform that enables real-time lending. We started the company initially to provide small business loans to eBay sellers through a real-time technology platform,” says Petralia.

Regulation 100

Regulation Lending US FDIC 100

CFPB Monitor

SEPTEMBER 9, 2020

Our letter draws on Ballard Spahr’s two-plus decades of experience in representing banks and savings associations (“Banks”) in establishing lending programs (“Bank-Agent Programs”) where a Bank obtains substantial assistance from a fintech or other non-Bank company (an “Agent”) to offer Bank loans to consumers or small businesses.

FDIC 78

FDIC National South Dakota Lending 78

PYMNTS

OCTOBER 1, 2018

The SEC found LCA, LendingClub and Laplanche guilty of fraud for improperly using LCA assets to benefit LendingClub Corporation, LCA’s parent company for which Laplanche was both founder and CEO. By using funds managed by LCA to benefit its parent company, LCA and Laplanche failed to do so.”. The SEC Finding. Attorney Alex Tse. “We

Lending 135

Lending Fraud Management San Francisco 135