Like every other banking regulator, the CFPB requires the banks and nonbanks it oversees to have vendor management programs to manage risk. Now it looks like the agency is preparing to go one step further and directly examine “key service providers,” particularly in the mortgage origination and servicing area. This insight comes courtesy of the […]
Today’s financial institution compliance officers are working in a challenging environment. Faced with a growing regulatory burden and limited resources, they have learned to be nimble and adaptable— their approach constantly evolving with the world of compliance. Their knowledge is highly specialized. Compliance officers understand the unique challenges of their institutions and how compliance plays […]
Compliance risk is the danger financial institutions face when they outsource product and service delivery to third-party vendors. It’s not a rare occurrence. FIs are regularly called out by regulators when their vendors fail to follow the rules.
Empty threats are rarely a good idea—and sometimes they are straight-up illegal. That’s the lesson $73 billion-asset Navy Federal Credit Union is learning after the CFPB forced it to pay members $23 million in redress and a $5.5 civil money penalty for making “false threats about debt collection.” The largest credit union in the country […]