Law360 (sub. req.) • AML BSA CTF • Industry News
Minneapolis-based U.S. Bank, the national banking subsidiary of U.S. Bancorp, will pay a total of $613 million, including $528 million in a deferred prosecution agreement with the U.S. attorney in Manhattan. The U.S. attorney charged the bank with two felony violations of the Bank Secrecy Act for failing to bolster its anti-money laundering efforts and attempting to hide that from regulators.
Law360 (sub. req.) • Mortgage Lending • Industry News • Regulation
The House passed a package of bills altering CFPB mortgage disclosure rules, SEC oversight rules and companies’ disclosure requirements, with backers saying the legislation would help encourage growth in the markets. Passing 271-145 and now headed over to the Senate, the TRID Improvement Act includes the Fostering Innovation Act, Protection of Source Code Act and National Securities Exchange Regulatory Parity Act. Supporters claim the changes would help companies accrue capital faster and make the markets more efficient, while opponents criticize provisions that would change the standards allowing the agency to keep a close eye on algorithmic trading.
American Banker • Lending • Industry News • Whitepaper
The Pew Charitable Trusts, seeking a compromise that benefits both depository institutions and cash-strapped consumers, released a set of ten recommended standards for banks and credit unions that want to offer small-dollar loans to subprime customers. Pew favors installment loans that include multiple payments over lump-sum products that often lead to a debt cycle. Among its proposed criteria: payments should not exceed 5% of the borrower’s paycheck; annual percentage rates should be below 100%; and the loans should be available quickly through digital banking channels. According to Pew, the proposal could save U.S. consumers $10 billion annually in fees, while also allowing banks and credit unions to earn sufficient profits.
CNBC • Lending • Industry News
Amazon reportedly partnered with Bank of America Merrill Lynch to provide loans to merchants. Amazon Lending is an invitation-only program that makes loans of $1,000 to $750,000 for companies that may have difficulty landing traditional business loans. Partnering with Bank of America allows Amazon to reduce its risk and access capital specifically to provide credit to more merchants so they can acquire inventory. Amazon Lending’s total loan balance growth grew only slightly last year after almost doubling in 2016.