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Compliance Notes

FDIC released its latest Consumer Compliance Supervisory Highlights. The issue includes a summary of the overall results of FDIC’s consumer compliance examinations of supervised institutions in 2022, a description of the most frequently cited violations and other consumer compliance examination observances, information on examination observations and regulatory developments, a summary of consumer compliance resources and information available to financial institutions, and an overview of trends in consumer complaints that were processed by FDIC in 2022. The publication may be viewed at: www.fdic.gov/regulations/examinations/consumer-compliance-supervisory-highlights/ documents/ccs-highlights-march2023.pdf

FFIEC released the 2023 edition of “A Guide to HMDA Reporting, Getting it Right.” The updated guide reflects the technical amendment to the 2020 HMDA rule to adjust the loan volume thresholds effective 01/01/2023, for reporting HMDA data on closed-end mortgage loans. The updated guide may be viewed at: www.ffiec.gov/hmda/ pdf/2023Guide.pdf

NACHA updated its WSUD form to include language alerting consumers of the risks of making false claims of unauthorized ACH debits to their banks. NACHA has added the following language to its sample document, “Any intentional attempt to obtain money from a financial institution by misrepresenting whether a transaction was authorized may result in the imposition of fines up to $1,000,000, or imprisonment up to 30 years, or both under the provisions of Federal law (18 U.S.C. §1344).” The added language is meant to educate consumers and is an anti-fraud measure. NACHA reported it has seen media reports and advice posted on the Internet that advises consumers to file claims with their financial institutions in inappropriate cases. The NACHA release may be viewed at: www.nacha.org/system/ files/2023-03/ACH%20Operations%20Bulletin%20%231-2023%20-%20Update%20to%20Sample%20WSUD%20 -%20FINAL%20March%2027%202023.pdf

CFPB published its 2022 Consumer Response Annual Report. The annual report analyzes complaints submitted by consumers in 2022. During 2022, CFPB received approximately 1,287,000 consumer complaints and sent more than 820,000 complaints to approximately 3,200 companies for review and response. In 2022, CFPB observed complaints about credit or consumer reporting increased, accounting for more than 75% of all consumer complaints. Complaints about checking and savings accounts also increased. Complaints about student loans made up a small percentage of complaints overall, but increased significantly. Consumer complaints about money service fraud or scams also increased. The report may be viewed at: https://files.consumerfinance.gov/f/documents/cfpb_2022-consumer-response-annualreport_2023-03.pdf

OCC published the spring 2023 edition of the Interest Rate Risk Statistics Report. The report presents interest rate risk data gathered during examinations of OCC-supervised midsize and community banks and federal savings associations. The report may be viewed at: www.occ.gov/news-issuances/bulletins/2023/bulletin-2023-9.html

FinCEN issued a Financial Trend Analysis on patterns and trends identified in Bank Secrecy Act data relating to business email compromise (BEC) in the real estate sector in 2020 and 2021. The report contains relevant information for the public, particularly individual homebuyers and the multiple entities involved in real estate transactions. FinCEN’s analysis of BEC incidents specific to the real estate sector revealed the following:

• The most common victims of impersonation were individuals and entities involved in the title and closing processes within a real estate transaction.

• Money mules were often involved in the movement of funds following these incidents.

• Nearly 88% of all incidents involved initial transfers of fraudulent funds to accounts at U.S. depository institutions as opposed to accounts outside the United States.

• Fraudsters engaged in multiple types of fraud and used the same accounts to receive funds from these acts as the accounts used to receive funds from real estate BEC scams.

• In several incidents, illicit funds quickly moved from bank accounts to online payment platforms, or were used to purchase convertible virtual currencies, most commonly in the form of bitcoin.

The analysis may be viewed at: www.fincen.gov/news/news-releases/fincen-analysis-business-email-compromisereal-estate-sector-reveals-threat

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