CFPB plans to review mortgage, credit card rules

The Consumer Financial Protection Bureau plans to review credit card rules as the qualified mortgage rule. 

Rohit Chopra, the CFPB’s director, said in a Friday blog post that the bureau will look at changes made to the QM rule’s underwriting standards, along with the CARD Act and the Fair Credit Reporting Act. 

“The CFPB aspires to more clearly communicate the agency’s expectations in simple and straightforward terms, which will produce more durable guidance and rules, in addition to numerous other benefits,” Chopra wrote. “Simple bright-lines advantage law-abiding companies and disadvantage law breakers.” 

Chopra said a number of rules “have now been tested in the marketplace for many years and are in need of a fresh look.” 

The CFPB, among other things, wants to look at provisions in the QM rule that let some delinquent loans gain QM status. The agency would also like to see more streamlining for refinancings and modifications.

Chopra said the agency will also consider “potential enhancements and changes to business practices” under the Fair Credit Reporting Act, which oversees how information is reported to credit bureaus. 

The CFPB plans to review the “enforcement immunity and inflation provisions” for fees and penalties associated with the CARD Act.

New Peoples in Va. working through systems issue

New Peoples Bank in Honaker, Va., is working through systems outages.

The $813 million-asset bank said in a post on its website that it “is working diligently to address and investigate a recent incident” that is interrupting the operation of its computer systems. 

The bank, which is looking to restore its computer systems “as quickly and safely as possible," said on its Facebook page that the issues began on Wednesday. 

New Peoples said, for instance, that customers are unable to transfer funds. 

The bank said it hired third-party experts to assist, adding that it will provide periodic updates as more information is collected. 

“As we are expecting a higher-than-normal call volume, we thank you for your patience as our branch teams work diligently to respond to customer questions,” the bank said. “We are investigating this incident with the support of third-party technical experts. That investigation is ongoing.”

First National in Michigan names new president

First National Bank & Trust in Iron Mountain, Mich., has a new president. 

The $421 million-asset bank said Russell Kassin had succeeded David Kashian, who will remain chairman and CEO until 2023.

“Our goal during this period is to make this transition to the next generation of leadership as seamless and transparent as possible for all of our stakeholders," Kashian told the Iron Mountain Daily News. 

Kassin “is an outstanding choice as my successor and the board … and I are confident in his ability to lead this outstanding and highly successful organization for many decades to come,” Kashian added. 

Kassin, First National’s chief lending officer, joined the bank in 2012. He was added to the bank’s board in February.

Amerant to enter Tampa market after key hires

Amerant Bancorp in Coral Gables, Fla., will enter the Tampa, Fla., market after hiring a team of bankers.

The $7.8 billion-asset company said in a press release Thursday that the group will be led by Jason Russek, who was named market president. He previously served as a regional director of commercial banking at BankUnited, according to his LinkedIn profile.

Russek will oversee a team of six commercial bankers. 

The office will focus on commercial real estate, along with other commercial and industrial, specialty finance and treasury management services. 

“Tampa’s exponential development makes it an ideal location for our ongoing strategic expansion in Florida,” Jerry Plush, Amerant’s chairman, president and CEO, said in the release. 

“The area’s appeal is broad, offering excellent schools, world-class entertainment, ease of travel and a strong talent pool of prospective team members,” Plush added.

Atlantic Union adds digital banking vet to its board

Atlantic Union Bankshares in Richmond, Va., has added a banking veteran to its board. 

The $19.8 billion-asset company said in a press release Thursday that Rilla Delorier had become a director, effective immediately. 

Delorier recently served as chief strategy and digital transformation officer at Umpqua Bank. She serves on the boards of Nymbus and Coastal Community Bank in Everett, Wash. 

Delorier “has an extensive background in multiple banking disciplines, including marketing, technology and strategic planning,” Ronald Tillett, Atlantic Union’s chairman, said in the release. “She excels in bringing innovation to companies and building a strong customer-centric culture.”

Canada's VersaBank turns to M&A for U.S. bank charter

VersaBank in London, Ontario, has agreed to buy Stearns Bank Holdingford in Holdingford, Minn.

The $2.1 billion-asset Canadian bank said in a press release that it will pay $13.5 million to Stearns Financial Services for the $60 million-asset Stearns. The deal is expected to close by Oct. 31. 

Stearns Financial would retain its Stearns Bank and Stearns Bank Upsala subsidiaries.

VersaBank said that buying Stearns, a national bank regulated by the Office of the Comptroller of the Currency, would provide access to U.S. deposits and help it expand its receivable purchase program business. 

The deal is expected to be accretive to VersaBank’s earnings per share in the first year after closing.

"This acquisition represents a transformational next step in VersaBank's long-term growth strategy," David Taylor, the bank’s president and CEO, said in the release. 

“It has been a pleasure working with the team at [Stearns Financial] and we look forward to exploring future opportunities for collaborations to our mutual benefit," Taylor added. 

Raymond James & Associates; Davis Polk Wardell; and Chain Bridge Partners advised VersaBank.

Zions in Utah to eliminate, reduce NSF fees

Zions Bancorp. in Salt Lake City is the latest bank to rein in overdraft and nonsufficient funds (NSF) fees.

The $91 billion-asset company said in a press release that the changes, which will take place on July 13, include the elimination of a continuing overdraft fee and the end of NSF fees for items that are returned unpaid because of nonsufficient funds.

Zions plans to reduce the NSF fee by more than 20% for items that are paid. It will increase the overdraft cushion amount from $5 to $30. 

The company said the changes should save customers about $7.4 million in annual fees. 

The changes “will help us build better pathways to inclusion for those members of our community who currently are unbanked or underbanked due to concerns about overdraft fees in traditional financial institutions,” Scott Anderson, Zions’ president and CEO, said in the release. 

“Removing roadblocks for consumers who have historically been priced out of the banking system is an important step in our efforts to promote economic inclusion,” Anderson added.