ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Uncategorized

Cross River Bank enters consent order with FDIC over fair lending compliance practices

May 31, 2023
Reading Time: 2 mins read

Fair Lending Compliance
In re: Cross River Bank
Date: May 18, 2023

Issue: Cross River Bank’s consent order with the FDIC over unsafe fair lending compliance allegations.

Case Summary: Cross River Bank entered a consent order with the FDIC to resolve claims the bank engaged in unsafe or unsound fair lending compliance practices.

CRB is widely considered to be the largest and among the most sophisticated banking partners of financial technology companies. The bank provides technology infrastructure to fintech firms and technology companies.

CRB has a charter that allows it to originate and sell loans issued to consumers and small businesses through CRB’s lending partners. Fintech firms cannot obtain a traditional bank charter and partner with banks such as CRB to make loans. The bank also enables money movement for payment processors and collects funds for lending programs.

CRB allegedly failed to establish and maintain internal controls, information systems and prudent credit underwriting practices. CRB is required to promptly “self-correct” any violations of fair lending laws, and “appropriately address” the alleged deficiencies and weaknesses identified in its lending activities. CRB neither admits nor denies it engaged in these practices.

The consent order requires CRB to make three immediate changes. First, CRB must strengthen lending and third-party compliance controls. The bank must increase supervision and oversight of internal controls, information systems, credit underwriting practices and internal audit systems relating to its marketplace lending. Under the consent order, CRB’s fair lending compliance obligations will also include marketing practices associated with its credit products. This includes: considering the terms describing a credit product in its marketing materials; contractually requiring the recordkeeping of marketing materials in its agreements with new third parties; and overseeing the terms and conditions in marketing materials about a credit product distributed by a third party.

Second, CRB must comply with credit product and third-party disclosure and non-objection processes. CRB must identify all its credit products and all third parties offering its credit products, and then seek FDIC’s written non-objection before offering new credit products or partnering with new third parties. These non-objection requirements imposed extensive due diligence obligations on CRB when offering new credit products or permitting new third parties to offer its products.

Lastly, CRB must prepare assessments and reports on information systems and fair lending. CRB must engage independent third parties acceptable to FDIC to prepare certain assessments and reports on CRB’s information systems and fair lending compliance. These assessments will evaluate whether each third party offering one or more CRB credit products for a six or months complied with applicable fair lending laws and regulations. In addition, CRB must prepare a written report reflecting the findings of the fair lending compliance assessment.

Bottom Line: The consent order suggests heightened FDIC scrutiny of bank-fintech partnerships.

Documents: Consent Order

ADVERTISEMENT
Tags: Banking Docket
ShareTweetPin

Related Posts

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: June 16

Uncategorized
June 16, 2025

The Office of Foreign Assets Control announced the following sanctions action last week.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: June 9

Uncategorized
June 9, 2025

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Preliminary injunction denied in bid to delay Capital One’s Discover purchase

Preliminary injunction denied in bid to delay Capital One’s Discover purchase

Uncategorized
June 2, 2025

A California federal court denied a group of consumers’ motion for a preliminary injunction seeking to delay Capital One’s impending purchase of Discover.

Third Circuit reverses FCRA lawsuit against Nissan over lease dispute

Third Circuit reverses FCRA lawsuit against Nissan over lease dispute

Uncategorized
June 2, 2025

A unanimous Third Circuit panel reversed a New Jersey federal court decision and ruled that a jury could find Nissan’s credit reporting inaccurate and its investigation unreasonable under the FCRA.

Green Dot agrees to pay Federal Reserve $44 Million to resolve UDAP allegations.

ABA, co-plaintiffs file joint motion with Federal Reserve to stay proceedings in stress test lawsuit

Uncategorized
June 2, 2025

ABA and its co-plaintiffs filed a joint motion with the Fed to stay proceedings in their lawsuit claiming the Fed’s stress testing framework violates the APA.

U.S. Supreme Court vacates Ninth Circuit preemption decision

U.S. Supreme Court clarifies wire fraud liability

Uncategorized
June 2, 2025

In a unanimous decision, the U.S. Supreme Court ruled a defendant may be convicted of federal fraud for inducing a victim to enter into a transaction under materially false pretenses, even if the defendant did not intend to...

NEWSBYTES

ABA urges CFPB to preserve streamlined mortgage relief option

June 16, 2025

Illinois pushes back implementation date for state interchange fee law

June 16, 2025

ABA, associations reiterate concerns about CFPB nonbank registry

June 16, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.