North Dakota Department of Financial Institutions - Home

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The North Dakota Department of Financial Institutions is responsible for chartering, regulating, and examining North Dakota state-chartered banks, credit unions, and trust companies.  The Department also licenses and regulates Money Brokers, Mortgage Loan Originators, Deferred Presentment Service Providers (Payday Lenders), Collection Agencies, Debt Settlement Service Providers, and Money Transmitters conducting business in North Dakota.  Please be aware the Department does not regulate all institutions doing business in North Dakota.  Specifically, we do not regulate federally-chartered banks or credit unions.

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North Dakota Receives Federal Waiver to Reduce Delays for Real Estate Appraisals

BISMARCK, N.D. (AUG. 26, 2019) – North Dakota recently became the first state in the nation to receive a federal waiver designed to help consumers by reducing wait times for real estate appraisals.

 

The North Dakota Department of Financial Institutions (DFI), North Dakota Bankers Association and Gov. Doug Burgum requested the waiver, seeking temporary relief for consumers as the state experiences a shortage of credentialed appraisers.

 

The Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) has temporarily waived the credentialing requirements for federally related transactions under $500,000 for residential real estate and under $1 million for agricultural and commercial real estate in North Dakota.

 

Under the waiver, North Dakota banks and credit unions can appoint someone other than a licensed or credentialed appraiser to conduct assessments for real estate mortgage loans issued by banks or credit unions. All appraisals still must comply with the Uniform Standards of Professional Appraisal Practice. 

 

This is the first time a state has been granted such a waiver since the option became available in 1989, DFI Commissioner Lise Kruse said. 

 

“The Department of Financial Institutions is fully committed to working with the depository institutions and the appraisal industry to address the appraisal delays, as the health of both industries is important to our citizens and our economy,” Kruse said. “This is a call for all of us – appraisers, financial institutions and state and federal regulators – to come together to find a long-term solution for timely appraisals and help consumers in North Dakota.”

 

North Dakota currently has a shortage of appraisers who meet federal law requirements, which has caused assessments in some parts of the largely rural state to take up to three months. The waiver aims to improve the timeliness of real estate transactions for at least the next year; the waiver may be extended for another year if certain conditions are met.

 

Banks and other financial institutions must appoint well-qualified people to conduct the appraisals and ensure the loan process is efficient. As the state regulator, the DFI will continue to enforce the law when there are loan violations, including missing appraisals. 

 

A link to the Order can be found here.


Temporary Waiver Request Published in the Federal Registry

The ASC has published in today’s Federal Register, a 30-day Notice for Comment for a Temporary Waiver Request from the State of North Dakota, the North Dakota Department of Financial Institutions and the North Dakota Bankers Association.  The comment period will close on July 1, 2019.  The Notice can be viewed hereComments can be viewed here by searching for Docket Number AS19-04.

 

Please give particular attention to the four questions at the end of the Notice. 


Department Issues Order on Former Credit Union Employee

On March, 29, 2019, Commissioner Lise Kruse issued an Order suspending Charity Erickson, a former employee of Citizens Community Credit Union, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions. The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law. A copy of the Order may be viewed here: Order


Temporary Waiver Request Response Letter Submitted to the Appraisal Subcommittee

The response to the request made by the Appraisal Subcommittee on September 7, 2018, for clarification and additional information to our August 1, 2018, submission has been issued.  Specifically, the request was for confirmation of the relief being sought is within the Appraisal Subcommittee's statutory authority, additional documentation of the scarcity of appraisers in markets throughout the State, and documentation relating to the significant delays caused by this scarcity. Governor Burgum, Commissioner Kruse, and the North Dakota Bankers Association have issued the response jointly. Click here to view the response.


Department Issues Letters to Non-Depositories on Law Changes

Several changes have been made during North Dakota's 66th Legislative Session that impact non-depositories. Letters to the industries summarizing these changes can be found here for money brokers, here for money transmitters, here for collection agencies, and here for deferred presentment service providers.


Letter from Commissioner Kruse regarding the end of LIBOR

The widely used reference rate known as the London Interbank Offered Rate (LIBOR) is scheduled to go out of existence.  Click here to read a letter from Commissioner Kruse regarding LIBOR and recommended actions to manage the transition. 


Department Issues Order on Former Bank Employee

On January 15, 2019, Commissioner Lise Kruse issued an Order suspending Bobbi Miller, a former employee of Kirkwood Bank and Trust, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions.  The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law.  A copy of the Order may be viewed here: Order


Joint Statement on Sharing Resources to improve BSA Compliance

Federal agencies issue a joint statement on banks and credit unions sharing resources to improve efficiency and effectiveness of Bank Secrecy Act Compliance.  Click here to read the statement. 


Civil Money Penalty Issued

On July 26, 2018, Commissioner Lise Kruse issued an Order imposing a $2,000.00 civil money penalty against Kirk Wullweber of Minot, North Dakota.  The Commissioner finds that Kirk Wullweber acted in willful violation of North Dakota law and a previously issued Departmental Order by engaging in unlicensed collection activity with a resident of North Dakota.  The party listed in this Order has been provided the opportunity to appeal the assessment pursuant to law.  A copy of the Order can be viewed here.


Proposed Administrative Rules Relating to State Chartered Credit Unions

The State Credit Union Board will hold a public hearing to address proposed new rules and amendments to Title 13 of the North Dakota Administrative Code.  The hearing will be held on August 30, 2018 at 1:30 pm in the Conference Room of the Department of Financial Institutions at 2000 Schafer Street, Suite G, Bismarck, North Dakota. 

Click here to see the full hearing notice.

Click here to see the proposed Administrative Rules.


Appraisal Waiver Request Made to the FFIEC Appraisal Subcommittee

To help address the appraiser shortage in North Dakota, Governor Burgum, Commissioner Kruse, and the North Dakota Bankers Association have submitted a temporary waiver request for certain real estate appraiser requirements from the Federal Financial Institutions Examination Council's Appraisal Subcommittee.   Specifically, the request asks for an increase of the limit when an appraisal is required from $250,000 to $500,000 for residential real estate loans and from $500,000 to $1,000,000 for agriculture and business loans.  This will improve North Dakota citizens’ ability to obtain real estate mortgages in a timely and cost efficient manner and will provide another option for consumers.  

 

Click here to view the entire appraisal waiver application.


CECL: Are you preparing?

As most financial institutions are aware, the implementation date for the upcoming Current Expected Credit Losses (CECL) accounting standard continues to draw nearer.  Though the implementation date is still years away for most institutions, the new accounting standard will significantly change the methodology institutions use for estimating future credit losses.  To help regulators gauge each institution's CECL-readiness, Department examiners will be joining examiners from the Federal Reserve, the FDIC, and the NCUA in assessing each institution's progress during upcoming safety and soundness examinations. <more>


Department Issues Order on Former Employee of Deferred Presentment Service Provider

On June 13, 2018, Commissioner Lise Kruse issued an Order suspending/removing Darla Morstad, a former employee of DC Holdings LLC d/b/a Direct Check, from employment or otherwise participating in the affairs of any deferred presentment service provider, financial institution, credit union, or any other entity licensed by the Department of Financial Institutions.  The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law.  A copy of the Order may be viewed here: Order


Department Issues Cease and Desist Order Against Minot Collection Agency

On May 8, 2018, Commissioner Lise Kruse issued an Order revoking the collection agency license of Northland Receivables Inc. d/b/a Checkrite of Minot.  The company has been ordered to cease and desist any further collection activities in the State of North Dakota.  Additionally, the Commissioner has ordered the suspension/removal of Kirk Wullweber from participation in the conduct and affairs of the collection agency, and prohibited him from being employed or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or any other entity licensed by the Department of Financial Institutions.  A copy of the Order may be viewed here:  Order

 

The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law.  Any person having any further questions, or believing they have been harmed by the conduct of Northland Receivables Inc. d/b/a Checkrite of Minot is directed to contact the Department.


North Dakota Joins in Agreement to Standardize Licensing Practices for Fintech Payments

Commissioner Lise Kruse recently signed an agreement to join six other states in streamlining the application process for Fintechs and other money service businesses.  It is expected other states will join this multi-state compact as part of a goal to gain participation from all 50 states.  Refer to the Conference of State Bank Supervisors (CSBS) press release:  Press Release


Welcome to our new website

Welcome to our new website.  We are hopeful it will be more user-friendly and informative. 


Industry Cybersecurity Tabletop Exercise Template

The Treasury Department recently issued a Financial Sector Cybersecurity Tabletop Exercise Template which is designed to assist small/mid-size financial institutions in assessing and strengthening their cybersecurity posture.  This voluntary tool will allow institutions to carry out internal cybersecurity exercises.  The template is customizable and allows for institutions to tailor the incident scenarios to their individual needs.  The template also includes discussion questions that can be used to enhance dialogue and improve participant understanding of incident response plans.  CSBS has shared this template, which is available for download: 

Tabletop Exercise Template


Lise Kruse named Commissioner

Today, Governor Doug Burgum appointed Lise Kruse as the Commissioner of the Department of Financial Institutions.  Press Release


Department of Financial Institutions adopts SAFE MLO Test

The North Dakota Department of Financial Institutions announced that it will adopt the new SAFE MLO National Test Component with Uniform State Content effective April 1, 2013.  View the Media Release for more information.