Supervisory Highlights on Consumer Compliance

In June 2019, the FDIC issued Consumer Compliance Supervisory Highlights. This publication includes a high-level overview of consumer compliance issues identified during 2018 through the FDIC’s supervision.

Five of the most frequently cited level 2 (Medium Severity) and level 3 (High Severity) violations included:

  • Truth in Lending Act (Regulation Z) – failure to properly calculate or disclose the finance charge or annual percentage rate for mortgage loans and disclosing fees on the closing disclosure that exceeded permitted tolerances;
  • Trust in Savings Act (Regulation DD) – applicable and accurate information not included on account disclosures;
  • Electronic Funds Transfer (Regulation E) – failure to properly investigate whether an error occurred and present the results of the investigation to the consumer within the appropriate timeframe;
  • Flood Disaster Protection Act (FDPA) – originating or renewing a designated loan with no flood insurance or an insufficient amount of flood insurance coverage; and
  • Equal Credit Opportunity Act/Regulation B – written notice of the applicant’s right to receive a copy of the written appraisal not provided to the applicant within three business days of receiving the application; higher fees for credit reports being charged for unmarried joint applicants than married joint applicants; erroneously obtaining information about the applicant’s race, color, religion, national origin, or sex in connection with a credit transaction for loan products prohibited from collecting this information; and failure to provide specific reason for adverse action to applicants for denied credit.

To read additional information presented in the Consumer Compliance Supervisory Highlights, the link is here.

If you have concerns with compliance or need assistance ensuring all necessary areas are reviewed, ABS is ready to help with any outstanding reviews or guidance you may need.  Please contact us at