Staying On Top of Vendor Risk Management News: Week of July 30

This week in third party risk news, there have been a number of mishaps that seemingly could have been avoided with proper vendor risk management. Read below for notable lessons on verifying your vendors, cybersecurity, keeping up with regulatory compliance and more.

Industry News for the Week of July 30

Kentucky bank cited for UDAP violation: Read here

LifeLock breached – yes, the identity theft protection company: Read here

It was the best of times; it was the worst of times… Read here

Thomson Reuters becomes Refinitiv: Read here

Community banks need to slow app development and verify their vendors: Read here

The cost of compliance - just 6 percent spend more than 10 hours a week tracking and analyzing regulatory developments: Read here

The unbanked - 2 billion adults don’t have bank accounts, and they’re an important new market for banks: Read here

Cautionary tale on cyber insurance: Read here

Wall Street Journal article on CFPB’s softer stance: Read here

Conference of note – RMA’s Community Bank Vendor Management Operational Risk Forum: Read here

The meandering road of the consumer complaints database at the CFPB: Read here

Treasury report – calls for FinTech charter, also endorses FinTech sandbox, and calls on Congress to create a national single data security standard: Read here

Here’s the full report – 222 pages of light reading – note the clarifications on pages 36 & 37 of data aggregators as third parties and a brief mention of fourth parties on page 51: Read here

OCC releases FinTech charter, with instructions and application – but expect legal challenges: Read here

and yes, it does set expectations for FinTech’s to have a third party risk program: Read here and here

Excellent legal analysis of the FinTech charter: Read here 

Is the abusiveness standard fading away at the CFPB? Read here 

Regulatory Relief a top priority for the new NAFCU chair: Read here

Continued regulatory focus on the processors: Read here

Wells Fargo new $2.09 billion settlement over mortgage practices

Wells Fargo to pay $2B over lending

Wells Fargo agreed to pay $2.09 billion to settle charges by the Justice Department that it had knowingly sold residential-mortgage loans to investors that contained false income information. The crisis-era loans, which defaulted, “did not meet the quality that Wells Fargo represented,” the DOJ said. The bank has faced multiple scandals over sales practices, including one involving opening millions of fake accounts that resulted in an unprecedented sanction by the Federal Reserve of not allowing the San Francisco-based bank to grow its balance sheet.

PCI compliance is not just a challenge for start ups, also for growing companies: Read here

Keeping up with rules and regulations is as crucial as ever. It's a best practice to make sure that your third party risk management program changes and is updated any time a new regulation is released. Download our infographic for more best practices that allow your third party risk management operation to succeed.