The OCC took action today against USAA Bank based on unsafe or unsound practices relating to management, earnings, information technology, consumer compliance, and internal audit and suspicious activity reporting violations. https://lnkd.in/eSTAifDY
I worked at USAA Bank 2013 to 2015. I was the Director of Mortgage Collections. My previous job was at Fannie May, with a direct reporting relationship with the Treasury Department working on mortgage issues. I began as I do with every new job I conducted a full operational assessment. RESPA was going live in 5 mths. The system built by the infamous IT team was not properly set up. My feedback was ignored. I found several other operational and regulatory problems. The collections group was managed the previous year by a personwith no Mortgag Background. He is still there. He and his boss became very upset with me for identifying and reporting multiple regulatory violations. Many required USAA to return millions of dollars to clients. Feedback from an outsider was not appreciated. Most of the folks there come from the military, which is not a bad thing. I was told by a fellow director during a leadership training person. He was a General in the Army. He told me that to survive here, “Keep your Head down and mouth shut”. Final note ,the manager and his boss blamed the defects of the previous very experienced leader who was moved to mortgage processing. He was terminated and was told I was responsible for it. Worst job ever.
How long was USAA given a pass before enforcement? How long did they engage in the behavior before it was noticed?
Can they do this https://www.expressnews.com/business/article/usaa-goverrnment-shutdown-loans-19990799.php? This strikes me as a "new" service.
Ah, new OCC enforcement. Generational rolling failure. Would a small bank be allowed all of this? Think change is necessary.
These enforcement actions always take a long time. I wouldn’t read into it more than there is.
This is a stunning action against USAA. So surprising that USAA dropped the ball.
There are a couple of interesting requirements in this one
Finally#USAA has harmed many #veterans thanks #OCC 😊
Risk Management Professional Trying To Live Each Day With Gratitude.
3dTD and now USAA. These issues don’t evolve overnight and one must wonder why the enforcement action took so long. Looks like some high paid consultants will be brought in and we can look for some new faces at the bank. Again, why did it take so long to bring this down? Senior Management and the Board have some work to do. The work to get from under this enforcement action will be hard and not easy and will definitely hit the pocketbook. But, one must look to the top and have a “come to Jesus meeting”. And hope you can retain your top talent. It is not fun working under an enforcement action.