Compliance Blog

NAFCU has signed on to a letter urging  Congress to support HR 1728.  It would require HUD to repeal the current RESPA rule and then work with the Federal Reserve to issue a joint rulemaking to deal with mortgage disclosures.  Read the letter here.  Download RESPA amendment to HR 1728 - letter of support. 

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The Supreme Court is hearing arguments in an important case involving preemption.  Here's a good overview of the case.  And why don't you read this guy's blog post.  He's very good, in my humble opinion.  In short, state attorney generals are challenging an OCC reg that claims the OCC has exclusive authority to enforce state fair lending regs against national banks. While this case involves the OCC, it will be interesting to see in which direction the preemption winds are blowing these days.

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The OCC has issued a consent order against the former VP and branch manager of a Mississippi bank.  Since 1993, this fellow has been doing the following, as alleged by the OCC:

(1) While employed at the Bank, from at least February 1993 until his employment was terminated in May 2004, Respondent violated ECOA and the FHA. Respondent discriminated against female applicants for credit, female borrowers and female accountholders by subjecting them to severe, pervasive, and unwelcome sexual harassment in connection with credit transactions and real estate-related transactions.
(2) Respondent breached his fiduciary duty and engaged in a pattern of unsafe or unsound practices contrary to generally accepted standards of prudent operation.
(3) Respondent’s conduct caused more than a minimal loss and other harm to the Bank and resulted in other benefit to the Respondent.
(4) Respondent’s conduct involved personal dishonesty and demonstrated a continuing disregard for the safety and soundness of the Bank.

The fellow is banned from working at financial institutions.   From the tone of the order, I wonder if he'd be able to work at a convenience store if that store had an ATM.  Such consent orders are a good reminder why we need to train, train, train and train employees on matters of discrimination.  One branch manager can wreck your reputation.  Not to mention all of the individuals who were violated.  And from a business point of view, think of all the business this bank may have lost from 1993 until 2004.  The last time I checked, a performing loan has no gender, race, religion or creed.