FRIDAY, September 24, 2021

To access specific issuances, go to our Top Stories section, where you'll find links to all the relevant documents.
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CDCI small dollar loan program awards
The Treasury Department has announced that its Community Development Financial Institutions (CDFI) Fund yesterday awarded more than $10.8 million in grants to Community Development Financial Institutions (CDFIs) in the fiscal year 2021 round of the Small Dollar Loan Program (SDL Program), to help expand consumer access to financial institutions by providing alternatives to high cost small dollar lending.

Authorized by the Dodd-Frank Act, the SDL Program helps Certified CDFIs address the issue of expanding consumer access to mainstream financial institutions and provide alternatives to high cost small dollar loans. The program was also created to help unbanked and underbanked populations build credit, access affordable capital, and allow greater access to the mainstream financial system.

A total of 52 CDFIs headquartered in 30 states, the District of Columbia, and Puerto Rico received FY 2021 SDL Program awards. The recipients comprise CDFIs of diverse types and include: 28 loan funds that received $5.2 million; 13 credit unions that received $2.8 million; and 11 banks or bank holding companies that received $2.8 million. This includes two organizations headquartered in Puerto Rico that received $560,000 in awards, and five minority depository institutions that received a total of $1.6 million in awards.

Of the 52 recipients, 13 SDL Program awards totaling nearly $3 million (or 28 percent of total funds awarded) were made to recipients with headquarters located in Persistent Poverty Counties, which exceeds the Congressional mandate of 10 percent.

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FinCEN starts process for new antiquities trade regs
FinCEN has announced it has issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a range of questions related to the implementation of amendments to the Bank Secrecy Act (BSA) regarding the trade in antiquities. This ANPRM is the first in a series of regulatory actions that FinCEN will undertake to implement Section 6110 of the Anti-Money Laundering Act of 2020 (AML Act), which became law on January 1, 2021.

Section 6110 amended the BSA by including as a type of financial institution a person engaged in the trade of antiquities, including an advisor, consultant, or any other person who engages as a business in the solicitation or the sale of antiquities. Section 6110 requires the Secretary of the Treasury to issue proposed rules to carry out the amendment.

Comments on the ANPRM are due by October 25, 2021.

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Fed issues prohibition order to former Oklahoma banker
The Federal Reserve Board has issued a consent order of prohibition to a former community president at the Ardmore, Oklahoma, office of Simmons Bank, Benton, Arkansas.

The order indicates that, between December 2018 and September 2019, the former banker initiated multiple unauthorized advances from a commercial customer's line of credit, transferred the proceeds from those advances to an unrelated customer's account, and authorized multiple overdrafts on a customer's account in excess of his authority, in violation of the bank's lending policy and of law or regulation, causing the bank to suffer a loss.

CFPB report on consumer complaint submissions
The CFPB on Thursday announced the release of its first in-depth report analyzing complaint submission patterns by U.S. Census tract. Titled "Consumer complaints throughout the credit life cycle, by demographic characteristics,” the report finds that the complaints from wealthier communities and communities with higher percentages of white, non-Hispanic residents were more frequently about loan origination and performing servicing, while the complaints from communities of color and lower income communities were more frequently about credit reporting, identity theft, and delinquent servicing.

The findings are based on the nearly a million consumer complaints submitted to the CFPB between 2018 and 2020. The report classifies complaints by matching the relevant consumers to census tract-level U.S. Census demographic data. Yesterday's report highlights the value of consumer complaint data for understanding the varied experiences of consumers using consumer financial products and services.

The report finds that consumers from lower income and predominantly Black and Hispanic communities submitted credit reporting and delinquent servicing complaints at a higher rate per resident than consumers from higher-income and predominantly white, non-Hispanic communities, who were more likely to submit complaints related to loan origination and performing servicing. Asian American and Pacific Islander communities had higher rates of submitting credit reporting complaints than predominantly white, non-Hispanic communities; however, they also had a lower share of delinquent servicing complaints.

FHFA foreclosure prevention and refinance report
The Federal Housing Finance Agency has released its second quarter 2021 Foreclosure Prevention and Refinance Report, which shows that Fannie Mae and Freddie Mac (the Enterprises) completed 217,020 foreclosure prevention actions in the second quarter of 2021, bringing the total number of homeowners who have been helped during conservatorships to 6.030 million.

The report also shows that 47 percent of loan modifications completed in the second quarter reduced borrowers' monthly payments by more than 20 percent. The number of refinances decreased from 2.016 million in the first quarter to 1.614 million in the second quarter.

The Enterprises' serious delinquency rate dropped from 2.48 percent to 1.99 percent at the end of the quarter. This compares with 9.48 percent for Federal Housing Administration (FHA) loans, 5.02 percent for Veterans Affairs (VA) loans, and 4.03 percent for all loans (industry average).

OCC virtual workshops for community bank directors
The OCC has announced its fall and winter schedule of free, virtual workshops for boards of directors of community national banks and federal savings associations.

The workshops are:
  • Building Blocks: Keys to Success for Directors and Senior Management,
  • Risk Governance: Improving Director Effectiveness,
  • Credit Risk: Directors Can Make a Difference, and
  • Operational Risk: Navigating Rapid Changes.











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