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Yesterday, the Treasury Department reported that OFAC has sanctioned an international network for facilitating the shipment of millions of barrels of Iranian crude oil worth hundreds of millions of dollars to the People’s Republic of China (PRC). The oil was shipped on behalf of Iran’s Armed Forces General Staff (AFGS) and its sanctioned front company, Sepehr Energy Jahan Nama Pars (Sepehr Energy). This action includes entities and individuals in multiple jurisdictions, including the PRC, India, and the United Arab Emirates (UAE), as well as several vessels.

For a link to the names and identification information of the designated parties and vessels, see yesterday's BankersOnline OFAC Update.

The U.S. Department of State this morning published [90 FR 9101] a List of Restricted Entities and Subentities Associated With Cuba (Cuba Restricted List) with which direct financial transactions are generally prohibited under the Cuban Assets Control Regulations (CACR).

The Cuba Restricted List was initiated in 2017. It was rescinded January 16, 2025. On January 20, 2025, President Trump issued an Executive Order reinstating the list.

Yesterday, the Federal Reserve Board released the hypothetical scenarios for its annual stress test, which helps ensure that large banks can lend to households and businesses even in a severe recession. Additionally, the Board released two hypothetical elements designed to probe different risks through its "exploratory analysis" of the banking system. The exploratory analysis will not affect bank capital requirements.

The Board's annual stress test evaluates the resilience of large banks by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under hypothetical recession scenarios that extend two years into the future. This year, 22 banks will be tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets. The scenarios are not forecasts and should not be interpreted as predictions of future economic conditions.

In the 2025 stress test scenario, the U.S. unemployment rate rises nearly 5.9 percentage points, to a peak of 10 percent. The unemployment rate increase is accompanied by severe market volatility, a widening of corporate bond spreads, and a collapse in asset prices, including about a 33 percent decline in house prices and a 30 percent decline in commercial real estate prices. Large banks with substantial trading or custodial operations are also required to incorporate a counterparty default scenario component to estimate potential losses from the unexpected default of the firm's largest counterparty amid an acute market shock. In addition, banks with large trading operations will be tested against a global market shock component that primarily stresses their trading and related positions.

Secretary of the Treasury Scott Bessent has announced President Trump's intent to nominate two individuals for positions at the Department of the Treasury.

Luke Pettit will be nominated for the position of Assistant Secretary for Financial Institutions, and Jason De Sena Trennert will be nominated for the position of Assistant Secretary for Financial Markets.

The FDIC has released a list of 60 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in November 2024.

• Fifty-seven of the banks received evaluation ratings of Satisfactory.
• We congratulate three banks that received ratings of Outstanding:
  • Belmont Savings Bank, Bellaire, Ohio
  • Community Valley Bank, El Centro, California
  • Spring Bank, Bronx, New York

The Treasury Department has released a letter sent by the Department to members of Congress in response to concerns surrounding the ongoing "DOGE" review of operations of the Bureau of the Fiscal Service by Tom Krause, a "special government employee" of the Treasury Department.

The Federal Reserve Board has announced the termination of two enforcement actions with Wells Fargo. Both were issued in 2011, with the first relating to deficient practices in residential mortgage loan servicing and foreclosure processing and the second relating to deficient mortgage lending practices at a former subsidiary.

The Board's 2018 enforcement action, which addressed widespread compliance issues by restricting Wells Fargo's growth, remains effective.

This morning, the FDIC released 175 documents related to its supervision of banks that engaged in, or sought to engage in, crypto-related activities.

Acting Chairman Travis Hill issued the following statement in connection with the release:

“I have been critical in the past of the FDIC’s approach to crypto assets and blockchain. As I said last March, the FDIC’s approach ‘has contributed to a general perception that the agency was closed for business if institutions are interested in anything related to blockchain or distributed ledger technology.’

“Upon becoming Acting Chairman, I directed staff to conduct a comprehensive review of all supervisory communications with banks that sought to offer crypto-related products or services. While this review remains underway, we are releasing a large batch of documents today, in advance of a court-ordered deadline of Friday. Our decision to release these documents reflects a commitment to enhance transparency, beyond what is required by the Freedom of Information Act (FOIA), while also attempting to fulfill the spirit of the FOIA request."

Hill said the FDIC is actively reevaluating its supervisory approach to crypto-related assets, including replacing Financial Institution Letter (FIL) 16-2022 and providing a pathway for institutions to engage in crypto- and blockchain-related activities while still adhering to safety and soundness principles.

The crypto-related activities documents are the first three items on the current list of records listed on the FDIC's FOIA Reading Room webpage.

Our research in the Federal Reserve Board's CRA evaluations archives reveals that the Reserve Banks released 23 CRA evaluation ratings of state-chartered member banks in January.

• Seventeen of those banks received evaluation ratings of Satisfactory.
• We congratulate six banks that received evaluation ratings of Outstanding:
  • 1st Source Bank, South Bend, Indiana
  • Dime Community Bank, Bridgehampton, New York
  • First Financial Bank, Abilene, Texas
  • The Killbuck Savings Bank, Killbuck, Ohio
  • Midwest BankCentre, Saint Louis, Missouri
  • Whitaker Bank, Inc., Lexington, Kentucky

The Office of the Comptroller of the Currency yesterday issued a list of Community Reinvestment Act performance evaluations that became public in January.

• Fifteen of the OCC-supervised institutions received Satisfactory ratings on their evaluations.
• Two institutions — United Trust Bank, Palos Heights, Illinois, and First Federal Savings and Loan Association of Lorain, Lorain, Ohio — received Needs to Improve ratings.
• We congratulate three institutions that received Outstanding ratings:
  • Nicolet National Bank, Green Bay, Wisconsin
  • Patrons Bank, National Association, Okmulgee, Oklahoma
  • Stearns Bank National Association, St. Cloud, Minnesota

The CFPB yesterday announced that, on Friday, President Trump designated Secretary of the Treasury Scott Bessent as Acting Director of the Consumer Financial Protection Bureau. Bloomberg Law reported, citing a memo to CFPB staff obtained by Bloomberg, that Bessent has ordered the CFPB to stop all rulemaking, communications, litigation, and other activities.

President Trump yesterday issued an Executive Order directing the Secretaries of the Treasury and Commerce to develop a plan for the establishment of a sovereign wealth fund "to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally."

The NCUA on Friday reported it issued one prohibition notice in January 2025. Shana M. Ware, formerly employed by Genisys Credit Union, Auburn Hills, Michigan, was notified that, because she had been convicted in October 2024 of one count of Embezzlement from a Financial Institution, one count of Forgery, and one count of Embezzlement by an Agent or Trustee of $20,000 to $50,000 related to her misconduct at the credit union, she is prohibited by law from becoming an institution-affiliated party of any insured depository institution.

The FDIC regularly releases a monthly list of its enforcement orders and decisions near the end of the month following the issuance of the orders. On Friday, the FDIC issued its January 2025 list of orders and decisions issued in December 2024. Among those enforcement actions were—

• An order for assessment of a $650,000 civil money penalty against WEX Bank, Sandy, Utah, after a finding that the bank engaged in deceptive acts and unfair practices in violation of Section 5 of the Federal Trade Commission Act
• An order to pay a $47,000 civil money penalty against State Bank of DeKalb, DeKalb, Texas, after a finding that the bank violated HMDA and Regulation C, by failing to report accurate data about its HMDA-applicable denied, withdrawn, and incomplete applications for 2021 and 2022.
• An order modifying a 2023 order of prohibition and order to pay a civil money penalty against Diana Yates, formerly affiliated with The Bank of Oswego, Lake Oswego, Oregon. The order of prohibition was reissued; the civil money penalty was canceled.
• A consent order against Bank of Vici, Vici, Oklahoma
• An order for assessment of a $105,000 civil money penalty and removal/prohibition against Frank William Bonan II, former chairman of the board of Grand Rivers Community Bank, Grand Chain, Illinois
• An Notice of Charges and of Hearing for an order of restitution of $352,450 and prohibition directed to Danielle Solomon, affiliated with Truist Bank, Charlotte, North Carolina
• Removal/Prohibition orders against—
  • Nigar Scott, Truist Bank, Charlotte, North Carolina
  • Vicki L. Grisham, The First State Bank, Abernathy, Texas
  • Kelly M. Huffman, First Security Bank - West, Beulah, North Dakota (with order to pay civil money penalty of $15,000)
  • Oscar Gonzales Bono (with three aliases), NVE Bank, Englewood, New Jersey
  • Sharna L. Carter, First-Citizens Bank & Trust Company, Raleigh, North Carolina
  • Rodolpho R. Pagesy Roussel, Oriental Bank, San Juan, Puerto Rico
  • Barbara Lejeune Chaisson, JD Bank, Jennings, Louisiana
• Voluntary Termination of Deposit Insurance orders for Washington Business Bank, Olympia, Washington; TSB Bank, Lomira, Wisconsin; First National Bank Northwest Florida, Panama City, Florida; and Northside Community Bank, Burnee, Illinois

In a recent CFPB Blog article, Zixta Q. Martinez, Deputy Director of the CFPB and Chair (since April 2022) of the FFIEC's Appraisal Subcommittee (ASC), provided an informal update on the ASC's progress toward its goals of ensuring appraisals are performed accurately and without bias and promoting a qualified, diverse, and plentiful resource of appraisers across the U.S.

The ASC has issued a proposed rule (89 FR 96912, comments due by February 4, 2025) that would formally implement ASC enforcement authority with respect to state appraiser certifying and licensing agencies, including authority to impose sanctions in ineffective appraiser regulatory programs. The ASC has also resumed on-site compliance reviews of state appraiser and AMC regulatory programs, and has issued 58 final reports. Five of those reports rated the reviewed state programs as "Needs Improvement," and four were rated "Unsatisfactory."

With prodding by the ASC, The Appraisal Foundation's Board of Trustees voted to change its governance structure in December 2023. Paying sponsors can no longer directly appoint board members, and the board's composition goals now include consumer advocates, civil rights advocates, and fair housing advocates.

On June 22, 2023, the Foundation’s Appraiser Qualifications Board also updated the Real Property Appraiser Qualification Criteria to make fair housing education a required component of an appraiser's qualifying and continuing education. The ASC provided comments on revisions. The updated Criteria will go into effect on January 1, 2026. The ASC staff are now attending closed sessions of the Foundation's three Boards to carry out the ASC’s monitor and review mandate.

The FDIC, OCC, and Federal Reserve Board have issued a joint press release announcing a virtual public outreach meeting on March 6, 2025, as part of their review of regulations, as required by law. The Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) requires the agencies, with input from the public, to review their regulations at least once every 10 years to identify any outdated or otherwise unnecessary regulatory requirements applicable to their supervised institutions.

The outreach meeting is an opportunity for interested stakeholders to present their views on the six categories of regulations listed in the first two Federal Register notices: Applications and Reporting; Powers and Activities; International Operations; Consumer Protection; Directors, Officers and Employees; and Money Laundering.

Yesterday, the CFPB issued a Stipulated Consent Order against Wise US Inc., the U.S. subsidiary of Wise PLC, a global electronic money services provider, ordering Wise to pay nearly $2.5 million for a series of illegal actions, including advertising inaccurate fees and failing to properly disclose exchange rates and other costs. Wise allows customers to send, receive, and store remittances through a mobile app and prepaid accounts and debit cards.

The CFPB found the company misled customers in the United States about its ATM fees and failed to properly disclose other fees. When people sent money that did not arrive on time, Wise failed to refund the remittance fees in the timeframe required by law. Overall, the company’s actions led to hundreds of thousands of dollars in harm to consumers. The CFPB is ordering Wise to pay approximately $450,000 in redress to harmed consumers and to pay a $2.025 million civil money penalty.

The CFPB found that Wise violated the Consumer Financial Protection Act of 2010 by advertising inaccurate ATM fees and charges to U.S. customers. The CFPB also found that Wise violated the Electronic Fund Transfer Act in a variety of ways, such as failing to properly disclose exchange rates and failing to refund fees when funds were not available to the recipient on time.

• Consent Order [56 page PDF]
• CFPB 1/30/2025 Press Release

The Consumer Financial Protection Bureau has released its annual List of Consumer Reporting Companies. The list identifies specialty reporting companies that collect and sell access to people’s data, including individuals’ finances, employment, check writing histories, or rental history records. People can use the list to, among other things, request their consumer reporting data, dispute inaccuracies, and block access to their credit reporting data through security freezes. The list also informs consumers about the types of personal financial information that is collected for credit and other consumer reports.

The Treasury Department yesterday reported its Federal Insurance Office has notified the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) that it is withdrawing its membership.

Treasury said NGFS was organized to help to meet the goals of the Paris Agreement, from which the United States withdrew. NGFS’s initiatives are inconsistent with the current administration’s priorities to grow the U.S. economy and American jobs, and NGFS’s role diverges from the traditional technical and coordinating roles of other international fora. Important parts of NGFS’s scope, including on monetary policy frameworks, go beyond FIO’s core duties.

The CFPB has announced its publication of a report showing that United States servicemembers pay higher costs and face greater financial risks than civilian borrowers when taking out credit to buy a car. The report analyzes more than 20 million auto loans originated between 2018 and 2022, and finds that servicemembers typically have larger loans, make smaller down payments, and ultimately shoulder higher monthly costs.

The report suggests that servicemembers pay about the same for both new and used vehicles as civilian buyers do, but on average pay more in interest and fees than civilian borrowers do, and also make those higher payments for longer. Military borrowers are also less likely to make a downpayment, more likely to make a smaller downpayment, and more likely to make a negative equity trade-in. Because servicemembers are often required to have a personal vehicle for transportation in order to fulfill their military obligations, and because they may be young men and women far away from family supports, they may be especially vulnerable to overreaching lending practices and have fewer resources to draw upon.

• Auto Lending to Servicemembers (Overview)
• Auto lending to servicememembers (46-page PDF)

Yesterday, FinCEN rescinded its two Alerts on Israeli Extremist Settler Violence Against Palestinians in the West Bank, published on February 1, 2024 and July 11, 2024, respectively. On January 20, 2025, the President signed a new Executive Order (E.O.), “Initial Rescissions Of Harmful Executive Orders And Actions,” which, among other actions, revoked E.O. 14115, “Imposing Certain Sanctions on Persons Undermining Peace, Security, and Stability in the West Bank.” Accordingly, FinCEN is no longer requesting that financial institutions file suspicious activity reports with the key term “FIN-2024-WBEXTREMISM.”

The two alerts remain on FinCEN's Alerts/Advisories/Notices/Bulletins/Fact Sheets webpage with annotations that they have been rescinded.

The Federal Reserve Board and the Federal Open Market Committee have released the FOMC Statement following their meeting of January 28–29. The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

U.S. house prices rose 0.3 percent in November, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI). House prices rose 4.2 percent from November 2023 to November 2024. The previously reported 0.4 percent price growth in October was revised upward to 0.5 percent.

However, in a repeat of previous HPI updates, price growth both nationally and regionally showed signs of slowing. The 12-month growth rate in November was 2.7 percentage points lower than it was as of November 2023, the fourth straight month in which the year-over-year growth rate was lower than it had been a year earlier.

Among the nine geographic divisions defined by the U.S. Census, the change in seasonally adjusted monthly home prices ranged from -0.6 percent in the East South Central division to 0.9 percent in the West North Central and New England divisions. The 12-month changes were positive in every region, ranging from 1.8 percent in the West South Central division to 7.7 percent in the New England division.

The Treasury Department has reported that Scott Bessent was sworn in as the 79th Secretary of the Treasury by Supreme Court Justice Brett M. Kavanaugh on January 28, 2025.

The Consumer Financial Protection Bureau has released two reports looking at national rental payment data from September 2021 to November 2024. The percentage of renters who paid late fees in the last year reached 23% in February 2023. While the rate declined to slightly less than 14% in November 2024, the CFPB’s analysis found that the median outstanding rental balance rose 60% between September 2021 and November 2024, suggesting increased financial distress among affected households. Renters who do pay late fees often pay multiple late fees in a year, and the average late fee is $85, up significantly from September 2021. Only about half of renters behind on their rent catch up in one month.

• CFPB Data Spotlight
• Full report (27-page PDF)

The CFPB has publicly posted letters sent by its General Counsel, Seth Frotman, to leaders of the state legislatures of Massachusetts, South Dakota, Oregon, and Washington encouraging the passage of pending legislation in those states that would prohibit a medical creditor or debt collector in those states from reporting any information regarding medical debt to a consumer reporting agency.

The Internal Revenue Service has announced yesterday's opening of the 2025 tax filing season, and the acceptance of federal individual tax year 2024 returns. As of yesterday's opening, IRS systems had already received millions of tax returns.

The IRS is again encouraging people to file their returns electronically and choose direct deposit for more secure, faster refunds, and suggests that paper refund checks are 16 times more likely to have an issue, such as the check's being lost, misdirected, stolen or uncashed. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information.

Tax refunds are likely to start arriving in paper and direct deposit form by the end of February.

FinCEN has updated one of the alerts on its Beneficial Ownership Information Reporting webpage to acknowledge the Supreme Court's January 23, 2025, stay of a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland).

Although various reports have suggested that the SCOTUS action would allow FinCEN to again require entities subject to the regulation to file reports, FinCEN's Alert notes a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, and reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop.

Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The Securities and Exchange Commission has issued Staff Accounting Bulletin 122 to rescind the interpretive guidance in Section FF of Topic 5 of the Staff Accounting Bulletin Series entitled Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users (Staff Accounting Bulletin 121).

The CFPB has released a report — Repossession in Auto Finance — showing that the rate of auto repossessions at the end of 2022 surpassed pre-pandemic levels. Additionally, lenders were increasingly more likely to use third parties, called forwarders, to manage the repossession process. The use of a third party generally increases consumer costs. The CFPB analyzed data from nine major auto lenders covering accounts with activity between 2018 and 2022. This data show increasing consumer risk in the $1.64 trillion auto loan market.

The CFPB said that consumers can continue to owe money on their vehicle even after it is repossessed and sold by the lender. The average outstanding balance for consumers that had an outstanding balance after repossession in December 2019 was more than $10,000. Following a brief drop, the average outstanding balance sharply increased and was more than $11,000 in December 2022.

The NCUA has reported that the president has designated NCUA Vice Chairman Kyle S. Hauptman as the thirteenth Chairman of the NCUA Board.

Mr. Hauptman listed his priorities as chairman in the NCUA's press release. Among them were—

• "Codifying our procedures to protect Americans from regulation-by-enforcement. For example, no enforcement action should ever set — even clarify — policy. In America and other free societies, the sequence is: set speed limits, then give speeding tickets (no one has any obligation to be aware of someone else’s ticket)."
• Re-assessing NCUA policies that may, even inadvertently, dissuade credit unions from serving low-income areas. This includes language around overdraft policies, particularly for credit unions located in states with especially punitive government late fees/penalties.
• Right-sizing credit unions’ obligations where possible under the Bank Secrecy Act, including NCUA’s regulations surrounding Suspicious Activity Reports.”

Last week, the CFPB released a Compendium of Recent CFPB Guidance, including CFPB Circulars, Bulletins, Advisory Opinions, and Interpretive Rules issued from November 2021 through December 2024. The Compendium comprises 42 documents issued by the Bureau during that period for a total of 363 pages in a PDF format.

The Financial Crimes Enforcement Network (FinCEN) recently published [90 FR 5629, 1/17/2025] a final rule to reflect inflation adjustments to its civil money penalties (those within the jurisdiction of FinCEN). The increased maximum penalties listed became effective on January 17, 2025. The current maximum penalties can be found in FinCEN's regulations at 31 C.F.R. § 1010.821.

The CFPB has posted a Bureau Blog entry, "Holding Government Contractors Accountable for Wrongdoing," to announce that Argus Information and Advisory Services, a subsidiary of TransUnion, has agreed in writing that it will not seek any government contract with the Consumer Financial Protection Bureau for three years.

In March 2024, the Department of Justice took action against Argus to resolve claims that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators. The Department of Justice alleged that Argus ingested information in violation of its federal government contracts and improperly monetized it in its commercial business. Argus paid $37 million to resolve these allegations.

The CFPB was one of many federal financial regulators with a contractual arrangement with Argus. The CFPB notified the TransUnion affiliate that it was considering additional actions, and Argus has now committed to the CFPB that it will not seek any contracts for three years.

The FDIC has reported that, effective yesterday, it has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The FDIC said the work of NGFS is not within the FDIC’s authorities and mandate.

The FDIC has issued a statement from Travis Hill, who became Acting Chairman of the FDIC on January 20, 2025. Mr. Hill included a list of matters he expects the FDIC to focus on in the coming weeks and months.

• Conduct a wholesale review of regulations, guidance, and manuals to ensure our rules and approach promote a vibrant, growing economy.
• Adopt a more open-minded approach to innovation and technology adoption, including (1) a more transparent approach to fintech partnerships and to digital assets and tokenization, and (2) engagement to address growing technology costs for community banks.
• Improve the bank merger approval process and replace the 2024 Statement of Policy to ensure that merger transactions that satisfy the Bank Merger Act are approved in a timely way.
• Withdraw problematic proposals from the past three years, such as proposals on brokered deposits and corporate governance.
• Improve the supervisory process to focus more on core financial risks and less on process, and reevaluate the supervisory appeals process.
• Enhance our readiness and preparedness for resolving large financial institutions, incorporating lessons from the far-too-costly failures of 2023, including the need to be much more proactive and nimble and to improve the bidding process.
• Pursue adjustments to our capital and liquidity rules to appropriately balance driving economic growth with ensuring safety and soundness and resilience to shocks.
• Encourage more de novo activity so there is a healthy pipeline of new entrants in the banking sector.
• Work to ensure law-abiding customers have, and do not lose, access to bank accounts and banking services.
• Modernize implementation of the Bank Secrecy Act.
• Study deposit behavior to develop a more sophisticated understanding of the relative stability of different types of deposits and depositors.
• Reevaluate our disclosure practices, and expand transparency in areas that do not impact safety and soundness or financial stability.
• Ensure the FDIC remains within our statutory mandates, and stops coloring outside the lines.
• Pursue internal efficiencies to ensure we are serving as responsible stewards of the Deposit Insurance Fund.
• Reestablish a strong workforce culture, where misconduct is not tolerated and those who engage in misconduct are held accountable.

The FDIC announced on Friday that the Pulaski Savings Bank of Chicago, Illinois, was closed by the Illinois Department of Financial and Professional Regulation (IDFPR) due its unsafe and unsound condition and an impaired capital position. The IDFPR appointed the FDIC as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Millennium Bank of Des Plaines, Illinois, to assume all deposits of Pulaski Savings Bank.

The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $28.5 million. The estimate will change over time as assets are sold. Suspected fraud caused the higher estimated cost to the DIF.

The CFPB on Friday announced it has ordered the American Honda Finance Corporation to pay $12.8 million for reporting inaccurate information that affected the credit reports of 300,000 people. During the COVID-19 pandemic, Honda Finance deferred certain vehicle loan payments. However, the CFPB found that the company told credit reporting companies that borrowers were delinquent when they should have been reported as current. The CFPB’s investigation also found multiple other credit furnishing accuracy and dispute investigation failures.

The CFPB is ordering the company to pay $10.3 million in redress to harmed customers and to pay a $2.5 million civil money penalty.

The NCUA has released a research note that provides an analysis of statistics for overdraft and non-sufficient funds fees, and observations on the relationship between overdraft and non-sufficient funds fees and other revenues.

The Note highlights two observations:

• Credit unions with higher combined overdraft and NSF fees per member do not seem to have lower fees per member for other services
• Credit unions with higher combined overdraft and NSF fee revenues do not seem to be using those fees to “subsidize” better interest rates

The NCUA’s Office of the Chief Economist will continue to analyze evolving trends in overdraft and NSF fees revenue as additional data become available.

The CFPB has issued released Issue 38 (Winter 2025) of its Supervisory Highlights series, an "Advanced Technologies Special Edition" that focuses on select examinations of institutions that use credit scoring models, including models built with advanced technology commonly marketed as AI/ML technology, when making credit decisions.