News

Order of Immediate Suspension and Removal of Brady Torgerson

Wednesday, July 21, 2021 at 10:30 am

The North Dakota State Banking Board has issued an Order suspending Brady Torgerson, a former employee of First Security Bank – West, Beulah, North Dakota, 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 can be found here:  Torgerson Removal Order 7/20/2021


Bank-Owned Life Insurance on Employees and Directors

Friday, March 26, 2021

Life insurance products can serve a number of appropriate business purposes and may be used to offset risks and costs incurred by a bank. These products exhibit characteristics that are different than other bank assets; therefore, the reasons for purchasing, your due diligence process, and ongoing monitoring of life insurance are governed by separate rules and an interagency policy statement to address oversight and risk management processes.

Bank-owned life insurance (BOLI) is addressed by North Dakota Administrative Code (NDAC) § 13-02-14, which was last amended April 1, 2003. Although this statute pre-dates the Interagency Statement on the Purchase and Risk Management of Life Insurance 2004-56, the Department’s rules are consistent with this statement.

A question the Department occasionally receives is whether a bank can continue to hold life insurance on an employee or director after that person is no longer with the bank. That depends on the purpose, whether the policy is for a key person or in connection with compensation and benefit plans. <more>  


Consent Order and Civil Money Penalties Issued Against Nationstar Mortgage LLC.

Monday, December 7, 2020 at 11:00 pm

On December 7, 2020, the Commissioner of the North Dakota Department of Financial Institutions joined other state and federal agencies in issuing a settlement agreement and consent order against Nationstar Mortgage LLC, d/b/a Mr. Cooper.  As part of the consent order, Nationstar will pay consumers nearly $90 million to resolve past actions, and will also pay in excess of $6.5 million in civil money penalties.  A summary of this consent order can be found here.  The settlement agreement and consent order can be found here.


Notice of a Persons Fraudulently Posing as North Dakota Financial Institution

Wednesday, September 23, 2020

We have been made aware of a fraudulent person(s) posing to be from a North Dakota financial institution.  The individual(s) place phone calls to the public and claim to be from a legitimate financial institution.  Their goal is to obtain personal financial information from the persons called.  These calls are fraudulent, likely part of an identity theft scheme.  As a reminder, you should never give out personal financial information over the phone or online unless you are confident that you are dealing with a reputable party.  A reputable bank, credit union, or non-depository financial institution will never contact you and request this type of information.     


North Dakota Receives Extension to Temporary Appraisal Waiver

Monday, August 17, 2020 at 07:00 am

On August 13, 2020, the Federal Financial institutions Examination Council (FFIEC) approved the Appraisal Subcommittee's (ASC) extension of a commercial real estate transaction temporary waiver relief order for North Dakota.  The extended waiver allows banks and credit unions in North Dakota to waive appraiser credentialing requirements for federally-related commercial real estate transactions under $1 million through August 7, 2021.  The waiver was originally granted on August 7, 2019, in response to a collaborative request by the State of North Dakota, the Department of Financial Institutions, and the North Dakota banking and credit union trade associations.

The FFIEC order can be viewed here: FFIEC Order

The Conference of State Bank Supervisors (CSBS) issued a press release applauding the temporary waiver while urging efforts to come up with a long-term solution to a problem that affects lenders nationwide.  CSBS Press Release


Revocation of Money Transmitter license of Olympic Financial Group, Inc.

Wednesday, August 12, 2020 at 10:45 am

On July 29, 2020, the Commissioner of the North Dakota Department of Financial Institutions revoked the money transmitter license of Olympic Financial Group, Inc., which is based in Minneapolis, Minnesota, and operates in North Dakota through delegates Safari Market in Grand Forks and Somali Business Center in Fargo. 

Money transmission activity includes receiving money or monetary value to send to a location within or outside of the United states on another person's behalf.  To lawfully engage in the business of money transmission, a license is required under North Dakota Century Code Chapter 13-09.

The Commissioner has found that Olympic Financial Group has failed to comply with North Dakota laws.  In order to protect the public, including new Americans, the Commissioner has ordered Olympic Financial Group to cease providing money transmitter services in North Dakota.  Order


North Dakota Requests Extension for Appraisal Waiver

Tuesday, July 7, 2020 at 07:00 am

On July 6, 2020, Governor Doug Burgum, the Department of Financial Institutions, the North Dakota Bankers Association (NDBA), the Independent Community Banks of North Dakota (ICBND), and the Credit Union Association of the Dakotas (CUAD) applied to the FFIEC Appraisal Subcommittee for an extension to the temporary appraisal waiver, which was granted in July 2019. 

Financial institutions are reporting that the waiver is utilized and that the option has been helpful.

There has not been much change in appraiser availability in the last year, and it appears wait times are still long throughout every section of North Dakota.  The financial institution regulators have issued numerous statements to address the COVID-19 pandemic, including encouraging financial institutions to work with borrowers, to provide borrowers with quick access to funds, and to provide borrowers with the ability to take advantage of equity in their real estate.  Therefore, it makes sense to keep the waiver in place since it provides much needed flexibility for financial institutions and borrowers, which will also help the economic recovery.  Due to the pandemic, collaboration work with the appraiser and financial institutions industries to determine possible solutions has been paused.  Therefore, we are asking for a two-year extension.

Attached is the application along with a letter of support from Representative Kelly Armstrong.  We thank Representative Armstrong for supporting our application.

Application to Extend Waiver          Letter of Support from Representative Armstrong


Notice of a Fraudulent Bank Purporting to Operate out of North Dakota

Wednesday, June 24, 2020 at 02:00 pm

We have been made aware of a fraudulent bank purporting to operate out of Fargo, North Dakota under the name of Fountain Bank.  This is not a North Dakota state- chartered bank.  The website and the physical address the fraudulent bank is using appears to be duplicates of a legitimate bank's website and address, but it is not in any way affiliated with a North Dakota state-chartered bank.


Consumer Guide on Mortgage Relief Options

Thursday, May 28, 2020 at 03:00 pm

To assist homeowners with federally-backed loans through the process of obtaining mortgage relief, the Conference of State Bank Supervisors (CSBS) and the Consumer Financial Protection Bureau (CFPB) today released a Consumer Relief Guide that discusses borrowers' rights to mortgage payment forbearance and foreclosure protection under the Federal CARES Act.  CFPB, CSBS, the Department of Financial Institutions, and all state regulators are committed to protecting Americans having financial hardship during the COVID-19 national health emergency. This consumer relief guide details what homeowners need to know to get the help they need, including a summary of borrowers' rights under the CARES Act, steps to access mortgage relief, and repayment options.  The website can be found here:  https://www.csbs.org/mortgage-relief-coronavirus; and a .pdf version of the guide can be found here:  https://www.csbs.org/system/files/2020-05/CSBS-CFPB_Consumers_Forbearance_Guide_May_2020_0.pdf

The Department maintains a list of regulatory and consumer links on our COVID-19 Resources page:  https://www.nd.gov/dfi/covid-19-resources

 


Stimulus Checks

Tuesday, April 21, 2020

The U.S. Secret Service and the U.S. Department of the Treasury issued a press release to inform citizens and consumers nationwide on ways to protect themselves against check fraud during these times. This announcement contains information that consumers and financial institutions can use to identify counterfeit U.S Treasury checks by knowing what to look for and where to look.”

 

https://www.secretservice.gov/data/press/releases/2020/20-APR/Check-Security-Features-for-Economic-Impact-Payments.pdf