Enforcement

Evans Bancorp in Hamburg, N.Y., has agreed to pay $825,000 to settle a lawsuit that accused the company of mortgage redlining.

The Justice Department's announcement that it would target individual executives at banks and other companies that are being investigated for wrongdoing has sparked a debate about whether the move is actually substantive or instead just designed to boost the agency's public image.

Nearly 20 trade groups representing lenders, banks, credit unions, title companies and others are urging federal regulators to provide guidance on how they plan to enforce a new mortgage disclosure regime that goes into effect Oct. 3.

Two top Justice Department and CFPB officials said this week that they are seeing more instances of redlining and lenders steering minority borrowers into higher-cost loans.

The New York licensing process for virtual currency companies is stoking fears that firms which do apply could inadvertently open themselves up to prosecution.

The Financial Crimes Enforcement Network's enforcement action against Ripple Labs sent a clear message to the cryptocurrency industry about regulators' high expectations for compliance. Such actions will help clear the way for banks to partner with blockchain technology firms down the line.

Ebrahim Shabudin, former chief operating officer and chief credit officer at United Commercial Bank in San Francisco, has been sentenced to 97 months in prison for securities fraud related to the bank's failure.

The Federal Housing Administration is reissuing a loan certification proposal that has sparked industry concerns that it will make it easier for the Justice Department to sue lenders when they file claims for agency-insured loans that go into default.

Symphony, the instant messaging service supported by fifteen large banks, says it will be ready to roll on Sept. 15 despite the objections of Sen. Elizabeth Warren and regulators who fear its encryption technology will impede supervision.

As marketing services agreements disappear under pressure from regulators, loan officers will have to compete based on skill and customer service to win referral business.