John Zasada, Compliance Consulting Director, Financial Institutions Group

On March 31, 2021, the Federal Deposit Insurance Corporation (FDIC) issued the Consumer Compliance Supervisory Highlights. The 13-page document contains interesting information about the compliance violations detected by the FDIC this past year and how to avoid them.

Even if you are not supervised or regulated by the FDIC, it is very helpful for all financial institutions to be aware of compliance violations identified in the document. FDIC-regulated banks are certainly not the only financial institutions to violate these regulatory requirements.

The most frequently cited violations involved the following:

  • Truth in Lending Act (TILA)
  • Truth in Savings Act (TISA)
  • Flood Disaster Protection Act (FDPA)
  • Electronic Funds Transfer Act (EFTA)
  • Real Estate Settlement Procedures Act (RESPA)

The report indicated 40% of all violations pertained to TILA, while 10% related to TISA.

In 2020, the FDIC initiated eight formal enforcement actions and 16 informal enforcement actions for consumer compliance violations.

If you need assistance keeping your financial institution in compliance with the various regulations, contact Doeren Mayhew’s regulatory compliance specialists.