Regulatory Supervision

Gambling on a DOJ Enforcement Action: State of the Wire ActBanks and payment processors involved with acceptance or processing of funds relating to gambling or state lottery systems can breathe a sigh of relief—at least for now—based upon a New Hampshire district court judge’s recent interpretation of the Wire Act, which rejected a much broader Department of Justice (DOJ) position that initially sent shockwaves throughout

HPA Compliance is Back in the CFPB’s CrosshairsOn March 12, 2019, the Consumer Financial Protection Bureau (CFPB) issued the Winter 2019 edition of its Supervisory Highlights report, detailing key examination findings that were discovered during the second half of 2018. The report covers a number of product lines, including automobile loan servicing, deposits and remittances, but spends the most time discussing issues

FHA Expands Program to Accelerate Financing of Low-Income Housing Tax Credit Multifamily Housing ProjectsThe mission of the U.S. Department of Housing and Urban Development (HUD) is, in part, to bolster the economy by strengthening the housing market, protecting consumers, and working to meet the needs for quality affordable rental homes. To further this mission, the Federal Housing Administration (FHA) launched a pilot program in 2012 to streamline mortgage

HUD Drastically Cuts Advance Notice for REAC InspectionsYou are the property manager for a HUD-subsidized apartment development. One day, the owner of the development rushes into your office, visibly frantic. The owner says, “We just received a letter from HUD’s Real Estate Assessment Center (REAC) that REAC inspectors have scheduled the property for an inspection.” You respond, “Don’t worry — with extensions

HUD OIG Report Could be Precursor to Increased Partial Claim Reimbursement DemandsOn September 21, 2018, the Department of Housing and Urban Development (“HUD”)’s Office of Inspector General (“OIG”) completed a review of HUD’s partial claims program. In many ways, the title of the OIG audit report, “HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for

CFPB Student Loan Ombudsman Abruptly Resigns in Protest In another move reflecting the Consumer Financial Protection Bureau’s (CFPB) shifting focus on student lending, the CFPB’s Student Loan Ombudsman announced his resignation on August 27, 2018. In his resignation letter, Seth Frotman, who served as the Student Loan Ombudsman for the past three years, criticized reforms implemented by the CFPB’s current leadership and

Providing Banking Services to the Legal Marijuana Industry: Mitigating Risks to Maximize Potential RewardsSince 1996, when California became the first state to legalize marijuana (at the time, for medicinal purposes only), 28 additional states and the District of Columbia have legalized marijuana to some extent. Public support for legalization continues to rise as more and more jurisdictions loosen their marijuana laws, with 64 percent of Americans in favor

On Tuesday, February 27, 2018, the Federal Reserve proposed to modify its guidelines and processes that institutions may rely upon to appeal an adverse material supervisory determination. The proposal also seeks to modify the Federal Reserve’s policy for its Ombudsman. Comments regarding the proposals will be accepted through April 30, 2018.

Federal Reserve Proposes Modifications to Its Supervisory Appeals Process and Ombudsman PolicyAppeals Process

The Federal