FRIDAY SEPTEMBER 25, 2020 VOL. 185 No. 186 AMERICANBANKER.COM Follow us on Twitter @AmerBanker Sterling in N.Y. sheds 5 nonperforming mortgage loans The company also found a buyer for its Heightened suspicion portfolio of equipment finance loans as Suspicious activity reports from banks and credit unions it tries to clean up credit and refocus on broke the 1 million mark last year, growing by a third middle-market lending. Page 7 since 2014 Truist sells legacy SunTrust See story on page 2 6 CRE loan servicing platform The Charlotte, N.C., company recently 1.2M closed on a sale of its Cohen Financial platform to SitusAMC. Page 7 1.1M How Cross River Bank 1M 7 gathered $250 million in deposits in 15 days 900K Partnering with the account-opening software firm Mantl, the New Jersey bank created a 800K CD campaign that helped fund its Paycheck Protection Program lending. Page 8 700K Citigroup vows to become 600K 8 ‘antiracist,’ review 2014 2015 2016 2017 2018 2019 internal policies Citigroup will spend $1 billion over the Source: Financial Crimes Enforcement Network next three years on efforts to help close the racial wealth gap as it seeks to become an “antiracist institution.” Page 8

Will backlash over Scharf JPMorgan is set to pay dailybriefing 3 remarks hinder ’s 9 $1 billion in record diversity push? spoofing penalty Will ‘Fincen Files’ give The company has been experimenting with JPMorgan Chase is poised to pay close to 1 banks an opening to ways to recruit more women and minorities, $1 billion to resolve market manipulation push for AML reform? including a program to hire professionals who investigations by U.S. authorities into its The news media investigation of transactions had left banking. But CEO Charlie Scharf’s trading of metals futures and Treasury by nefarious actors puts certain large banks reference to “a very limited pool of Black securities, according to three people with in a negative light, but it also points to talent” for important jobs may make it harder knowledge of the matter. Page 9 inefficient use of suspicious activity reports for Wells to meet inclusion goals. Page 5 and other anti-money-laundering issues that The partners that can the industry has decried for years. CRE concerns intensify as 10 help Fed speed launch (See chart above.) Page 2 4 stimulus programs expire of real-time payments Commercial real estate loans are vulnerable The central bank must engage core Banks feel more pressure as financial assistance for tenants winds processors, community banks and The 2 to upgrade AML tech down and might not be fully renewed. Late Clearing House if it wants to move quickly after ‘Fincen Files’ rent payments could rise, leading lenders to on building out its FedNow system, Deborah Artificial intelligence, machine learning and press landlords to pay up. Page 6 Phillips of the Independent Community enhanced data sharing among lenders could Bankers of America writes. Page 10 go a long way toward spotting suspicious patterns in daily financial activity and bad actors, experts say. Page 3 FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 2

law enforcement to that very activity,” Greg former official at the Office of the Comptroller AML Baer, president and CEO of the Bank Policy of the Currency. “But to the extent that there Institute, said in a statement on Sunday. is a perception that AML reform results in Yet the report could lead to AML reforms more leniency for banks, some may think we Will ‘Fincen supported by banks if policymakers start to need to hit the pause button before charging question the effectiveness of Fincen reporting. ahead with very significant reform legislation. Files’ give Last year, the SARs filed by depository If it plays out that way, I can see it derailing the institutions exceeded 1 million for the first reform bill.” time. When beneficial owner legislation aimed banks The industry has urged Congress to finally at cracking down on anonymous shell pass a measure to require corporations to companies was included a House defense opening to disclose beneficial owners to Fincen. Bank spending bill in July, banks believed they lobbyists have urged lawmakers to go further were closer than ever to updating decades-old by seeking to make the reporting process more AML laws. The bill also includes a provision push for AML efficient, including raising the transaction enabling Fincen to upgrade its technology. thresholds requiring reports. “The Fincen Files highlight the need to reform? “For years, [Fincen] farmed out all of strengthen our anti-money- laundering the SAR analyses,” said Ross Delston, an laws and to crack down on anonymous By Neil Haggerty independent attorney specializing in anti- shell companies to ensure that banks know September 23, 2020 money-laundering compliance issues. “More with whom they’re doing business, both of WASHINGTON — Many banks were in the recently, they formed a group in-house that which are key components of my Corporate uncomfortable position over the weekend does the analysis but it’s still largely done Transparency Act,” said Rep. Carolyn Maloney, of having their ties to dubious customers by law enforcement in regional locations D-N.Y., the lead sponsor of House legislation revealed thanks to the BuzzFeed report on around the country. That’s not supposed to that would require companies to disclose data sent to the Financial Crimes Enforcement be the way a unit works. their true owners to Fincen at the point of Network. But there may be a silver lining. Financial intelligence units are supposed incorporation. The “Fincen Files” report, based on to analyze SARs in-house and … send their Up to now, Congress has effectively over 2,000 suspicious activity reports that recommendations to law enforcement for abandoned doing more, such as raising the were leaked to BuzzFeed, could shine an further investigation.” SAR and CTR reporting thresholds to mitigate unenviable light on the client list at certain Others cautioned that while the heightened bank compliance costs. But industry lawyers large institutions. But industry lawyers and attention to money-laundering issues could say the “Fincen Files” reflect broad concerns others say the investigation, a collaboration lead to reforms, there are still looming risks for about the way banks report potential cases of with the International Consortium of banks. through SARs and how the Investigative Journalists, could also heighten “I think you can look at it two ways. One government handles those submissions. attention on flaws with SARs and other anti- way is that it creates more urgency for AML “Banks are encouraged to file SARs money-laundering efforts that banks have reform because some may now perceive that whenever they see anything remotely close to urged Congress and Fincen to fix. the current system isn’t working all that well,” money laundering or remotely close to a crime “If I were looking at anti-money-laundering said Dan Stipano, a partner at Buckley and a at the institution,” said Vartanian. “When I was today, knowing what I know about the instances and enforcement matters I was involved in, I would sort of rebuild it from the Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 ground up,” said Thomas Vartanian, a former Phone 212-803-8200 AmericanBanker.com regulator and industry attorney who now directs the Program on Financial Regulation Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 & Technology at George Mason University’s Managing Editor Dean Anason 770.621.9935 Antonin Scalia Law School. Reporters/Producers Banking industry representatives have Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 rejected the report’s suggestion that banks Washington Bureau Chief Joe Adler 571.403.3832 aided and abetted criminals by moving Executive Editor, Technology Miriam Cross 571.403.3834 roughly $2 trillion in transactions. They say the Penny Crosman 212.803.8673 Jim Dobbs 605.310.7780 SARs banks submit to Fincen are intended as BankThink Editor Rachel Witkowski 571.403.3857 a red flag to help law enforcement agencies John Heltman 571.403.3847, Allissa Kline 716.243.2679 Community Banking Editor Paul Davis 336.852.9496 track illicit activity. Hannah Lang 571.403.3855 “It does not make sense that the basis for Contributing Editor Daniel Wolfe 212.803.8397 John Reosti 571.403.3864, Gary Siegel 212.803.1560 media allegations that banks knowingly hid Digital Managing Editor illegal activity consisted solely of Suspicious Christopher Wood 212.803.8437 Jackie Stewart 571.403.3852, Kevin Wack 626.486.2341 Activity Reports that those banks filed alerting

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 3 in the government … the regulators, Fincen, illicit activity that is not being policed. to Fincen and that creating a database of Treasury people, were just overwhelmed “If there is any lesson from the Fincen Files, information would put by the number of SARs being filed, because it’s that there’s no shortage of financial crime their information at risk. between regulators filing criminal referrals and and it’s ongoing and continuing on a massive “The reform confirms NFIB’s worst institutions filing SARs, it’s just an enormously scale,” Delston said. fears that an expanded database will be overwhelming amount of information.” Vartanian said that while money laundering used for surveillance purposes and small Some lawmakers have proposed relieving continues to occur, Fincen would be better business owners’ privacy will lack sufficient banks of their AML reporting burdens and served in combatting crime by improving its protections,” said Kevin Coleman, senior limiting superfluous reports by raising the technology infrastructure. director of federal government relations at the monetary thresholds at which banks are “If the government doesn’t start using National Federation of Independent Business. required to submit SARs and CTRs. Legislation technology properly and catch up with how Stipano said the fact that the BuzzFeed was proposed in 2018 that would triple the technology is being used by the outside world, report is based on leaked SARs could dollar threshold for filing CTRs to $30,000 and we have no chance of regulating anything amplify the small businesses’ concerns that double it for SARs to $10,000. Those thresholds in any reasonable way that makes sense,” Fincen cannot be trusted with their private have been unchanged since 1970 and 1996, Vartanian said. information. respectively. Fincen would not indicate whether it would “That this highly sensitive, highly A report this week by the Government like Congress to allocate more resources. The confidential information was apparently Accountability Office recommends that agency, which earlier this month unveiled leaked by an insider within Fincen is very, very Fincen take steps to ensure law enforcement plans to overhaul rules governing AML troubling,” Stipano said. “Banks file SARs with has better access to SARs. The report also compliance, has also issued a warning to news an expectation of confidentiality, and they rely contains details on the compliance burdens outlets about publishing SARs. on that expectation in filing millions of SARs particulary for smaller banks. “As Fincen has stated previously, the every year that contain incredibly sensitive Vartanian said a better AML regime would unauthorized disclosure of SARs is a crime information. … People who are named in ensure that the reporting “really gets at the that can impact the national security of the SARs, including preparers, could have their real money laundering rather than creating a , compromise law enforcement physical safety jeopardized by a leak like this.” universe of recordkeeping that probably isn’t investigations, and threaten the safety and focused as clearly as it could be on what the security of the institutions and individuals actual money laundering is that’s going on.” who file such reports,” Fincen said on its REGTECH “All of the policies and procedures and website. all of the rules and the regulations and all of The beneficial ownership reform bill the examinations that’s going on, are they as would also facilitate improvements in Banks feel targeted and efficient as they could possibly Fincen’s technology. The Senate version of be? And my sense is the answer to that the legislation would put Fincen employees more pressure question is no,” Vartanian said. “And they on a more competitive pay scale with other could be a lot more enhanced by technology regulators in an effort to recruit better talent. It and a lot more enhanced by focusing more on also would require the Justice Department to to upgrade actual money laundering and less on policy provide metrics on how frequently AML data and procedures.” from financial institutions contains useful AML tech But federal law enforcement agencies have information to further law enforcement’s consistently pushed back against raising purposes, the extent to which such data leads reporting thresholds, arguing that it would to investigations of bad actors, and emerging after ‘Fincen limit valuable reporting that can help combat patterns and threats in the AML landscape. crime. “I don’t want to understate how important Files’ While the BuzzFeed report criticized banks that bill is being negotiated as part of the for allegedly continuing to facilitate money defense bill would be from the beneficial By Penny Crosman laundering after submitting SARs to Fincen, ownership side, but also on the money September 23, 2020 observers say banks may simply be complying laundering side, allowing the banks and Banks have long needed to strengthen their with regulators’ orders. Fincen to use more machine learning and efforts to catch money launderers, which “The fact that banks are filing lots of SARs is technology and analyze trends,” said Clark they mostly attempt to do with anti-money- a good thing,” said Stipano. “That means that Gascoigne, interim executive director at laundering software. New revelations of they are complying with the law. … It could the Financial Accountability and Corporate financial crime taking place under bankers’ very well be that banks were working side by Transparency Coalition. “If Congress could do noses only add to the pressure to do so — side with law enforcement in investigating this one thing right now, it is to get this bill across quickly. activity and that story can’t be told because the finish line.” This week, journalists from BuzzFeed and the banks are legally prohibited from talking But opponents of the bill have argued that the International Consortium of Investigative about it.” it is overly burdensome for small businesses Journalists began publishing their analyses Still, the report suggests that there is vast to report beneficial ownership information of a trove of 2,100 suspicious activity reports

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 4 leaked from the Financial Crimes Enforcement This is an industry trend, according to trafficking is a significantly increasing Network, a unit of the Treasury Department. Harrison. problem,” Gossain said. “The same is true in The journalists say five large banks — “Banks and regulators will embrace new the U.S. and in the world.” JPMorgan Chase, HSBC, [artificial-intelligence] powered technologies Criminals use a lot of email money transfers Bank, and Bank of New York to be able to analyze vast amounts of data and for this purpose. Mellon — allowed $2 trillion of laundering be able to identify and manage the associated “If a pimp has 10 customers who email to take place through their institutions after risks,” he said. “We may see regulators put money to him, we could potentially link all the they had been fined by regulators for AML more pressure on banks to identify trends or email money transfers and realize this is a hub compliance violations. patterns within their SARs to help them deal and report that to” the Financial Transactions “This leak will be a wake-up call for financial with the volumes of SARs filed.” and Reports Analysis Centre of Canada. services firms and their regulators,” said Guy Third, Scotiabank has been improving But because those customers have accounts Harrison, general manager at Dow Jones Risk network analytics and entity resolution to at different banks, Scotiabank can only see a and Compliance, who pointed out that the detect shell companies and individuals who small part of the spoke, not the entire hub and $2 trillion in suspicious transactions were may be transferring funds to third parties. spoke. flagged in 2,000 SARs from 2011 to 2017, which “Once you plot a network on a graph and The problem with data sharing among were only 0.02% of the total SARs filed in that connect all the companies or individuals in banks is privacy: Transaction data is sensitive period. So the scope of the problem could be it with account numbers, telephone numbers customer data that banks have to protect. much larger. and transactions, it becomes very clear how Homomorphic encryption is one this entire network is operating,” Gossain technology that could facilitate data sharing Inadequate technology said. “We have uncovered illicit cannabis and without violating privacy rules. It lets users Most SARs are generated by AML software. human trafficking networks worth millions in apply analytics to data without seeing all the “The situation further brightens the transactions, through a combination of these underlying data itself. spotlight on technology in the AML world,” three techniques.” “You can imagine it as locking data in a said Jo Ann Barefoot, CEO and co-founder Barefoot says identity verification and box,” said Alon Kaufman, CEO of Duality of the Alliance for Innovative Regulation. “I know-your-customer technology is on the Technologies, a provider or homomorphic have been one of the many people saying for verge of getting better. There’s work being done encryption for data sharing for money a long time that we need to upgrade it. Most in Washington to help determine the true laundering investigations and other purposes. banks have been working with antiquated ownership of the entities that are transacting. “The data stays intact, totally accurate, and you technology and struggling with the difficulty Real-time money laundering detection would don’t delete any fields, but everything’s locked of sharing information.” be a big step forward. in a box. You can apply accurate analytics to Banks are required to file SARs whenever “That is coming at the large banks, but we’re the data in the box without ever opening it.” they suspect some kind of financial crime, and still in early days,” Barefoot said. “That’s exactly A bank might identify a suspicious they do file them by the thousands. But about where we need to go.” customer and that person’s pattern of cash 90% of the time, the suspicious activities don’t transactions. Then the bank could ask its peers prove to be criminal, according to Barefoot. Need for banks to share data if they have seen the same kind of pattern “We also must have a high false-negative Many in the industry believe money from that customer. The name, address, date rate where we’re not finding money laundering could be caught more effectively of birth and cash transaction data would all be laundering,” she said. if banks could share data about suspicious encrypted in the query. One challenge is that banks often don’t activity. Other banks would apply the query to their know exactly who is behind the transactions “The fundamental problem that we are databases and send back encrypted data they process. Though each new customer is facing is that each bank is only able to look at about the customer’s cash transactions. put through know-your-customer vetting, data for their customer base,” said Gossain, “The other banks do not get tipped on which money launderers use shell companies and who leads the AML analytics practice for customer I’m inquiring about, and everything other forms of obfuscation. Scotiabank. An analyst at Scotiabank, for remains encrypted, so nobody could see each Vishal Gossain, vice president of Scotiabank instance, has no visibility into a Canadian other’s data,” Gossain said. in Canada, said his $1 trillion-asset company customer’s transactions at Royal Bank of Homomorphic encryption technology has been working on this in three ways. First, Canada or TD Bank. is standardized and open source, so banks it’s bringing in data from third parties to “That creates a blind spot,” Gossain said. could be using different software but still be supplement its customer data, to get a more “I cannot understand the customer and his able to make such handoffs. Law enforcement complete picture of customers. Second, it’s transactions overall.” agencies and regulators could also use it in using more advanced machine learning Banks use rules to monitor every their work. models to detect criminal behavior. transaction. For example, a bank might set a “Only a few cases actually get prosecuted,” rule that any transaction over $10,000 triggers Need for feedback from regulators Gossain said. “So to know the bad actors the filing of a SAR report. But a customer might Barefoot pointed out that filing SARs is a becomes a challenge because of limited withdraw $5,000 from Scotiabank, $5,000 from blind process. data size. Advanced machine learning really TD and $5,000 from RBC. “When a bank files a SAR, it doesn’t get helps.” “In Canada, human trafficking and sex feedback about it unless there is a further

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 5 inquiry from Fincen or law enforcement,” she and resources to diversity — partly because the said. “They don’t know if the SAR was useful. DIVERSITY AND EQUALITY coronavirus pandemic’s toll has exposed racial They know that they had a suspicion and had and economic inequities and partly because reason to file a suspicious activity report. They of the civil unrest that followed the killings of don’t know how the users of the report have Will backlash Black Americans such as George Floyd and valued it and what they have done with it.” Breonna Taylor. Lenders are committing vast Barefoot and others have been advocating over Scharf sums of money to address racism — Bank of for a better feedback loop. America, Citigroup and PNC Financial Services “Fincen has some very sophisticated Group in Pittsburgh each committed $1 billion, technology, but it’s a small agency, and it’s remarks while Huntington Bancshares in Columbus, overwhelmed with reports, including false- Ohio, pledged $20 billion over five years — and positive reports,” she said. hinder Wells hiring chief diversity officers or elevating such Whether or not to file a SAR is a judgment roles to the C-suite. call, Barefoot said. Many have pledged to meet certain hiring and “Suspicion is a subjective matter,” she said. Fargo’s promotion targets. In its first Corporate Social “But if they suspect money laundering, they Responsibility Report, which was released this have to file a SAR. I’ve seen some commentary diversity month, Truist Financial in Charlotte, N.C., suggesting that banks consider the high disclosed plans to increase senior leadership penalties that occur in the AML space are a diversity from 11.9% to 15% over three years. cost of doing business and they don’t care. push? Truist was formed in December from the I don’t agree with that. These are very high merger of BB&T in Winston-Salem, N.C., and penalties and reputation damage.” By Allissa Kline SunTrust Banks in Atlanta. September 23, 2020 Scharf, who is nearing the end of his first Need to do the right thing Wells Fargo has taken a series of steps to year as top executive of Wells, was caught in Obviously, sometimes banks don’t catch increase workforce diversity, but blowback a firestorm Wednesday after a Reuters report money laundering because they don’t want over CEO Charlie Scharf’s comment that there a day earlier that he told employees in a June to. The customers doing it are highly profitable is “a very limited pool of Black talent” for key 18 memo about diversity initiatives that “the and well connected, so it makes business jobs has raised questions about whether those unfortunate reality is that there is a very limited sense to turn a blind eye. initiatives have been dealt a serious blow. pool of Black talent to recruit from” for people “There are some situations where someone Louis Montgomery Jr., head of the human with experience in fixing the “unique set” of in the bank is actively colluding and being resources and diversity officers practice at regulatory and control challenges facing Wells. rewarded for it,” Barefoot said. “My view is that Korn Ferry, said the fallout could be limited Regulators cracked down on the San Francisco that is rare, but it undoubtedly happens. And because Wells has already established several company after its fake-accounts and other there are some situations that the bank is just programs to promote inclusion, including one scandals, and the Federal Reserve has imposed not able to catch; they don’t have the tools. tying senior leaders’ compensation to their a cap on its asset growth until Wells resolves its And then in the middle, you’ve got gradations progress in increasing diversity within their problems. of people who maybe are not being aggressive departments. Scharf made similar remarks during a virtual enough in checking it out and getting to the “It won’t over the long haul undermine their meeting with employees later in the summer, bottom of what is happening.” efforts, but I do think it will cause them to focus the Reuters story said. On the other hand, banks do spend tens of their efforts a bit more differently than perhaps The CEO quickly walked back those billions of dollars a year on AML compliance. in the past so they can get access, because the comments in a lengthy statement to employees “It’s the most expensive and most risky talent is there,” he said. “For whatever reason, Wednesday in which he apologized “for compliance area of all,” Barefoot said. “The they may not have been looking in all the right making an insensitive comment reflecting [his] penalties and the costs of compliance are the places.” own unconscious bias” and said the industry highest. So it’s definitely not the case that the Jodie Grove, head of belonging and inclusion has “not done enough to improve diversity, industry is shrugging off. But if we really want at Meet & Engage, a recruitment technology especially at senior leadership levels.” to shut down the terrible kinds of crimes that company in London, took a more negative view. He also highlighted what Wells is doing happen, the whole industry needs to go on to She said job candidates might think Scharf’s to hire and promote women and minorities, modern, digitized technology that can gather comments “reflect a level of ignorance” about including a the launch of a “returnship” information in a digitized form so it can be Black people and other underrepresented program for professionals who want to resume analyzed with AI and you can find these groups. full-time banking careers; the addition of two suspicious patterns.” “Existing Black employees might also start Black executives to the operating committee; to question whether they are valued within the the building of relationships with historically organization,” Grove said in an email. “All of this Black colleges and universities and Hispanic- could make it harder for the company to hit its serving institutions; and the development of diversity targets.” anti-racism training. More than ever, banks are devoting attention “There is no question Wells Fargo has to

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 6 make meaningful progress to increase diverse quarters have delinquency rates that are representation,” Scharf wrote in the statement. COMMERCIAL REAL ESTATE materially higher than other loans, Trepp “As I said in June, I have committed that this LENDING researchers said in a recent report. Within time must be different.” that group, delinquency rates for loans Wells has pledged to double Black leadership with balances greater than $25 million are over the next five years. In the June memo, CRE concerns significantly higher than those for smaller Scharf said 6% of senior managers are Black loans. while 21% are racially or ethnically diverse. intensify “Larger borrowers are typically more Wells introduced the returnship program, sophisticated and less likely to be encumbered called Glide Relaunch, in early September. The by recourse or guarantees, making strategic program seeks professionals with at least seven as stimulus default a more rational decision,” Trepp’s years of work experience who have taken a researchers said. voluntary career break of at least two years and programs High vacancies are crippling many hotels now want to come back to banking full-time. and reduced foot traffic is hurting retailers in It does not explicitly call for diverse malls and shopping centers. Office buildings candidates, but the structure and qualifications expire are another potential source of weakness as of the program are designed to attract a diverse more Americans work remotely and more pool of candidates, according to Indhira By Jim Dobbs employers consider reducing their physical Arrington, head of targeted sourcing at Wells. September 23, 2020 space. The positions begin as paid internships and can Uncertainty about exposure to commercial “Those areas continue to be under the most convert to full-time jobs. real estate continues to dog banks. pressure,” Anderson said. “The numbers now In 12 days, it attracted more than 800 While many lenders have reported a steady are not as dramatic as feared, but because of applicants, mostly women, Arrington said. decline in loan deferrals, industry observers the various stimulus, they are understated.” The program, which will initially include are concerned about future demand for retail Lawmakers are also concerned. about 40 people, was one of several that Scharf and office space and what would happen At a hearing of the House Financial Services announced in a March memo to employees. if legislators fail to approve more stimulus Committee on Tuesday, members pressed “What I can tell you from the application for existing tenants. And a number of CRE Federal Reserve Chairman Jerome Powell and stats is that the pool is quite diverse, both from borrowers are barred from participating in Treasury Secretary Steven Mnuchin to allow a gender perspective and from an ethnicity federal pandemic-relief initiatives like the CRE borrowers to access government relief perspective,” Arrington said in an interview Main Street Lending Program. programs. last week. “We will look for the most qualified The overall CRE delinquency rate for banks Deloitte has forecast that charge-offs for candidates first that meet the requirements, but increased to 0.92% on June 30 from 0.83% loans secured by office, retail, industrial and we know the diversity is going to come.” a quarter earlier and 0.68% at the end of last hotel properties could rise to 0.47% of the Set to begin in November, the 10-week year, according to Federal Reserve data. outstanding balances for those credits. While program will culminate in job offers across a While much lower than levels seen during the well below the 1.65% mark reached in 2010, it variety of business lines, and each position will financial crisis, it is the highest rate since early would mark a surge from just 0.05% before the pay a base salary of at least $100,000 annually, 2016, and some industry observers fear it will pandemic. with potential for bonuses. continue to climb in coming quarters. While some markets and industries Arrington said Wells is putting more money As stimulus programs expire, more tenants recovered over the summer, sectors that were toward diversity efforts, not pulling back, will likely miss rent payments, putting more struggling pre-pandemic face steepening during a crucial moment in the nation’s history pressure on commercial landlords trying to challenges. when discussions about race and equity are pay their mortgages. Deloitte noted in a recent report that 90% rising to new levels. “What happens when all this stimulus goes of the newly distressed assets in the second “Diversity leads to innovation, which leads away, when these deferral periods end?” said quarter were tied to the hotel and retail to market growth, which leads to business Jon Winick, CEO of Clark Street Capital. “I think industries. Retail developers are dealing success,” Arrington said. “So for me the biggest we’re going to see many more challenges. The with the added challenge tied to consumers’ return on investment in this program is bringing credit picture right now is a mirage.” shifting preference for digital commerce. more diversity to Wells Fargo … so that we can “It is sobering to think about what things While a number of bankers have said harness the value of that diversity to drive our could look like for banks without any that the overall economy seems to be slowly business growth.” more stimulus,” said Matthew Anderson, a healing and that most borrowers are making She expressed confidence that the bank is managing director at Trepp. loan payments, a lot of uncertainty still exists. moving in the right direction. And there are signs some borrowers are “There are still a lot of unknowns,” said Brian “At the end of the day, what gets measured purposefully defaulting after realizing they Martin, an analyst at Janney Montgomery gets done and now diversity is embedded would be unable to extend or refinance their Scott. into everything we do, including who owns loans — a development that could hasten a Deferral rates, though down, remain accountability for it. And that starts with Charlie wave of foreclosures later this year. historically high, averaging 7% of total loans and the business,” she said. Loans set to mature over the next five at banks covered by Janney. The credit picture

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 7 could darken notably if a meaningful chunk of $176 million. Its ratio of nonperforming loans “This transaction allows us to refine our those loans become delinquent, Martin said. to total loans should decrease from 1.17% to focus as we continue to integrate operations “We may not really figure out where things 0.80%. with Grandbridge,” Truist said. stand until the fourth quarter or even next Sterling also reported that loan deferrals While Truist did not disclose a reason for year,” Winick said. “But anyone who would tied to the coronavirus pandemic have fallen the sale, the company, under Chairman and claim victory now, in terms of credit quality, by 59% since June 30 to $704 million. CEO Kelly King, has been seeking to cut costs would be highly misleading.” “While the early effects of the pandemic led as part of ongoing integration efforts. many companies to defer payments under the As of Aug. 31, Cohen Financial serviced and guidance of the CARES Act, the businesses and managed about 6,900 loans with an unpaid M&A operations of many of our commercial clients balance of $34 billion. have been resilient through these difficult The sale included the transfer of roughly 122 economic conditions,” Kopnisky said. Cohen employees. SitusAMC will maintain Sterling in N.Y. “While several industry sectors continue existing servicing partnership ties with Truist to experience meaningful challenges specific and Grandbridge. sheds nonper- to the pandemic, we are encouraged by the The transition will reunite two former decrease,” he said. Sterling “will continue Cohen executives with their former employer. to pursue mutually beneficial solutions Tim Mazzetti, SitusAMC’s head of U.S. forming mort- and assist our clients as they operate their servicing and asset management, and Dean businesses through the pandemic.” Wheeler, the company’s head of client service gage loans delivery, worked at Cohen between 2006 and 2019, leading the buildout of the loan By Jim Dobbs M&A servicing and asset management platform for September 23, 2020 structured-finance and CRE/multifamily loan Sterling Bancorp in Montebello, N.Y., has assets held for institutional clients. completed two loan portfolio sales, including Truist sells Mazzetti and Wheeler maintained their the remaining balance of its small business roles at Cohen when the firm was sold to commercial transportation book and most of legacy SunTrust in 2016, but left to join SitusAMC last its nonperforming residential mortgages. year. (SitusAMC, which operates in the United The $31 billion-asset company said in a States, Europe and the Asia-Pacific region, is press release Wednesday that it sold $106.1 SunTrust CRE majority-owned by funds tied to the private million in equipment finance loans. In a equity firm Stone Point Capital.) separate transaction, it sold mortgages with a loan servicing “We’re very excited to have the opportunity carrying value of $57.6 million. Sterling did not to buy our platform back, which we spent, you name the buyers. know, 12-plus years building,” Mazzetti said in The company said that, in aggregate, the platform an interview. sales included $84.5 million in nonperforming Mazzetti said the Cohen portfolio will loans and resulted in net charge-offs of $55.1 By Glen Fest bring mostly CRE loans held by life insurance million. Sterling said the majority of the September 23, 2020 companies into the fold, as well as portfolio of charge-offs had been previously addressed Truist Financial in Charlotte, N.C., has sold investor mortgages secured by single-family with additions to its loan-loss allowance. one of its commercial real estate loan servicing home rentals that are frequently pooled into “With the actions we are announcing and asset management divisions, shedding a mortgage-backed securities. today, we continue to emphasize our intent legacy SunTrust Banks platform that managed The SitusAMC portfolio has about 10,000 to proactively address the impact of the $34 billion in CRE assets. loans with a total outstanding balance of pandemic on our business and loan portfolio,” The $506 billion-asset company — formed $130 billion, consisting primarily of larger, Jack Kopnisky, Sterling’s president and CEO, in December by the merger of BB&T and structured-finance CRE loans from which said in the release. SunTrust — said in a Sept. 18 press release proceeds typically fund construction or bridge The sales “include assets that did not meet that it had sold its Cohen Financial platform financing. SitusAMC also acts as a special our risk-adjusted return targets and were not to SitusAMC Holdings in New York. It did not servicer for troubled loans. core to our strategy of [serving] middle-market disclose the price. Mazzetti said neither portfolio includes commercial clients,” he added. “Accelerating SitusAMC will integrate Cohen into its own traditional conduit CMBS loans, which have the disposition of these assets will allow us servicing and asset management group. seen a tremendous spike in delinquencies and to better allocate our capital and human Truist will retain Cohen’s debt advisory and defaults. resources to other areas of our business that placement platform, and the company will “It’s very similar to the agency and some are in-line with our strategy and have higher maintain a role in originating, servicing and of the other books you see [with] insurance prospects for growth and profitability.” managing agency and CRE loan assets through companies and bank blocks portfolios,” he The sales should lower Sterling’sits Grandbridge Real Estate Capital division, said. “Sure, there’s been a significant increase” nonperforming loans by 33% from June 30, to which was a BB&T unit before the sale. in delinquencies, “but it’s not nearly the same

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 8 as you’re seeing in CMBS. We’re not seeing million within six months. Cross River advertised its CDs on Google, anything like those numbers.” Instead, the bank hit the $250 million mark social media and Bankrate.com. The bank in 15 days from when its BrixDirect CDs were expected that the average account size would launched on April 12. By June, it ranked among be $60,000, but customers deposited an DIGITAL BANKING the top 15 PPP lenders in net dollars, according average of $137,000 per account. to the Small Business Administration, and Rather than setting the maximum at the fourth in loan count — just after Bank of Federal Deposit Insurance Corp. limit of How Cross America, JPMorgan Chase and Wells Fargo. It $250,000, the bank capped account deposits had made $5.4 billion worth of PPP loans as at $10 million. Paving the way for consumers River Bank of June 30. Cross River ended up originating to lock up such high amounts was crucial: more than $6 billion in PPP loans, up from According to Mantl’s analysis, accounts of the $50 million in SBA-backed loans it made more than $250,000 made up 17% of all CDs gathered $250 in 2019. opened but 47% of all deposits raised through The story of how Cross River gathered $250 the campaign. million in million in two weeks is one about the benefits Another piece of the strategy involved of fintech collaboration and the usefulness of underwriting the new accounts as fast as quick online account opening. possible while remaining in compliance. deposits in 15 Cross River’s above-average 2.25% rate For more secure identity verification, Mantl may have caught new customers’ attention, recommends that banks use six to 12 different days but some other tactics employed by Mantl data sources to validate a customer’s identity behind the scenes ensured this campaign ran when underwriting deposit accounts, rather By Miriam Cross smoothly and the bank could open more than than one or two. (Mantl typically pulls data September 22, 2020 2,000 accounts efficiently. At the same time, from sources like White Pages Pro, LexisNexis Cross River Bank is known as a loan the experience has given Cross River a way to and Equifax.) originator and banking services partner to raise capital for its lending division, increase After the bank hit its goal of $250 million, fintechs. But the $9.9 billion-asset lender its balance sheet for new fintech clients and it lowered its CD rate significantly, but raised also wants to be a direct-to-consumer bank, potentially deepen its consumer offerings. an additional $30 million in the next 16 days and those ambitions were sped up when the The benefit of using Mantl’s software is that anyway. coronavirus pamdemic struck in the spring it allows parameters to be changed in near- and it needed to drum up hundreds of millions real time, Goldfeder said. “We could set our of dollars — fast — to help fund emergency rates and our minimum deposit amount, and DIVERSITY AND EQUALITY loans to struggling small businesses. then adjust it on the fly,” he said. When the Paycheck Protection Program Mantl’s intention is to provide community was announced in March, Cross River wanted and regional banks and credit unions with an Citigroup to get involved, but it didn’t have the deposits online account-opening platform that rivals on hand to fund the loans. This was before the the ones deployed by fintechs and large banks. vows to Federal Reserve had set up its liquidity facility, In speaking about Mantl’s broader mission, which allowed banks to remove PPP loans Chief Financial and Operating Officer Raj from their balance sheets so they could help Patel said, “Community and regional banks become more small businesses. and credit unions provide amazing service “We were excited about not just the prospect to customers and have very competitive ‘antiracist,’ of providing service to small businesses, but to products, but are really underserved from do it in a way only fintech companies could — a technology perspective. If we can help make it safe and efficient at the same time and them bridge that technology gap, it will be a review provide access to capital,” said Phil Goldfeder, healthier market for consumers.” senior vice president of public affairs at the The two companies worked backward internal Teaneck, N.J., bank. “But we recognized that before they could move forwards. They began one of our limits was our ability to fund the by defining their goals, including how much loans.” money Cross River wanted to raise and how policies Raising consumer deposits was already quickly. part of Cross River’s plans: The bank had “One thing Cross River focused on was By Bloomberg News partnered with Mantl, an account-opening generating as many deposits as it could from September 23, 2020 software firm, back in November. Together, as concentrated a customer base as it could, Citigroup will spend $1 billion over the the two companies expedited the process with as high a level of automation as it could,” next three years on efforts to help close the with a springtime campaign promoting jumbo said Patel. The partners decided jumbo CDs, racial wealth gap as it seeks to become an certificates of deposit that was meant to raise with a $50,000 minimum, could maximize “antiracist institution.” $20 million in deposits in a month and $250 deposits from customers. More than half of the funds will go toward

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 9 supporting homeownership for people of Previous spoofing cases have been resolved color and affordable housing by minority PENALTIES AND FINES without banks or trading firms pleading developers, Citigroup said in a statement guilty to criminal charges. However, when Wednesday. The bank also earmarked $350 prosecutors filed cases last year against million for procurement opportunities for JPMorgan individual JPMorgan traders they painted Black-owned suppliers. a grave picture of its precious metals desk, “We are in the midst of a national reckoning is set to pay saying it operated as an illicit enterprise on race, and words are not enough,” Chief within the bank for almost a decade. Financial Officer Mark Mason, one of Wall The government’s settlement with Street’s most senior Black executives, said $1 billion JPMorgan is not expected to result in any in the statement. “We need awareness, restrictions on its business practices, said education and action that drive results.” in record one person familiar with the negotiations Citigroup research found that if the U.S. between authorities and the bank. It is could instantly end the most severe forms anticipated that JPMorgan will admit to of economic discrimination against African spoofing wrongdoing. Americans, it could give a $5 trillion boost Spokespeople for the Justice Department, to gross domestic product over the next five penalty CFTC, SEC and JPMorgan all declined to years. comment. During the past 20 years, race-based By Bloomberg News In 2015, JPMorgan was among firms inequalities shaved about $16 trillion from September 23, 2020 accused of manipulating currencies. It GDP, the New York-based firm estimated JPMorgan Chase is poised to pay close to pleaded guilty to an antitrust charge and paid in a study released Tuesday. Citigroup said $1 billion to resolve market manipulation a $550 million fine to the Justice Department. it studied the costs of lost wages, fewer investigations by U.S. authorities into its The bank also paid penalties to U.S. regulators. opportunities for higher education and less trading of metals futures and Treasury The pending spoofing case against access to home and small-business loans. securities, according to three people with JPMorgan follows criminal charges filed “What this report underscores is that this knowledge of the matter. last year against several of its employees, tariff is levied on us all and, particularly in the The potential record for a settlement including former head of the precious metals U.S., that cost has a real and tangible impact involving alleged spoofing could be desk, Michael Nowak. In that case, the Justice on our country’s economic output,” Citigroup announced as soon as this week, said the Department used racketeering laws more Vice Chairman Raymond J. McGuire said in people who asked not to be named because commonly used in mafia and drug gang the report. “We have a responsibility and an the details haven’t yet been finalized. The prosecutions, alleging the precious metals opportunity to confront this longstanding accord would end probes by the Justice desk effectively became a criminal enterprise societal ill.” Department, the Commodity Futures for eight years. Citigroup on Wednesday said its goal of Trading Commission and the Securities and Nowak and three others accused in the case becoming an antiracist institution means Exchange Commission into whether traders pleaded not guilty and are seeking to have the it will actively work to identify and end on JPMorgan’s precious metals and treasuries charges dismissed. Two other former traders discrimination. desks rigged markets, two of the people said. have pleaded guilty to conspiracy claims and The company said it would develop A penalty approaching $1 billion would are cooperating. standards to ensure its software eliminates far exceed previous spoofing-related fines. It Shortly after Nowak was charged, biases, and it will ask the outside marketing, would also be on par with sanctions in many JPMorgan learned it was the focus of a communications and legal partners it works prior manipulation cases, including some separate but related criminal investigation with to ensure people of color work on the brought several years ago against banks for into the bank’s trading of Treasury securities bank’s accounts. allegedly rigging benchmark interest rates and futures, according to another person “Addressing racism and closing the racial and foreign exchange markets. familiar with the matter. JPMorgan, which wealth gap is the most critical challenge we Spoofing typically involves flooding disclosed that investigation earlier this year, face in creating a fair and inclusive society, derivatives markets with orders that traders said it’s cooperating with authorities. and we know that more of the same won’t don’t intend to execute to trick others into Cracking down on spoofing has been a do,” Chief Executive Michael Corbat said in moving prices in a desired direction. The priority for prosecutors and the regulators the statement. “This is a moment to stand practice has become a focus for prosecutors since Congress outlawed it through the up and be counted, and Citi is committed to and regulators in recent years after Dodd-Frank Act. Authorities are concerned leading the way.” lawmakers specifically prohibited it in 2010. that the practice has proliferated in the era of While submitting and then canceling orders electronic trading, with market participants isn’t illegal, it is unlawful as part of a strategy using computer algorithms to submit a intended to dupe other traders. high number of bogus orders. A court ruling It couldn’t be determined whether New last year paved the way for prosecutors to York-based JPMorgan will face additional scrutinize trading going back a decade. Justice Department penalties in court. More than two dozen individuals and

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 10 firms have been sanctioned by the Justice settlement features, such as fraud mitigation, many community banks, core processors Department or the CFTC, including day a liquidity management tool and common will be the technology provider that enables traders operating out of their bedrooms, standards to make interoperability with connectivity to FedNow. sophisticated high-frequency trading shops private-sector payment services possible. The Fed should work openly with these and big banks such as Corp. Further, the Fed’s plan to limit access to and other relevant technology providers and Deutsche Bank AG. Reserve Bank account holders is consistent early and often to integrate these platforms Bank of Nova Scotia last month agreed to with existing Fed processes and will safeguard ahead of the FedNow launch, which will be pay $127.4 million to settle U.S. allegations FedNow from systemic risks. instrumental in ensuring it gains a foothold that the company engaged in spoofing of While this strategy makes sense and would in the marketplace and ultimately achieves gold and silver futures contracts, and made help banks manage the transition to the 24/7, ubiquity. false statements to the government. The bank 365-days-a-year payments service, it came a The need for interoperability also extends admitted to wrongdoing. full year after the Fed announced its intention to FedNow’s private-sector competitor: to build the system. The Clearing House’s Real-Time Payments Further, the strategy doesn’t appear to be network. Real-time ubiquity requires BANKTHINK speeding up the agency’s timetable, which interoperability and cooperation between continues to forecast a 2023 or 2024 launch. the public- and private-sector services. Fortunately, many expected FedNow users Collaboration will benefit all parties. The partners are available and eager to help the Fed move Further, the Fed and TCH can also work quickly. together to provide for a common set of that can help The first step the Fed can take to expedite rules to support a frictionless experience FedNow is expanding transparency in the and simplified compliance that doesn’t system’s development. The more information overburden entities that use both systems. Fed speed the Fed can release to allow community For instance, dollar thresholds — an banks and other users to plan for the launch, important risk-mitigation tool — are set launch of the faster and smoother it will be. at $100,000 for RTP but not yet defined This means building out the FedNow for FedNow. A consistent set of guidelines website with clear information about would go a long way for the institutions real-time onboarding, fraud prevention, liquidity deploying these services while supporting management, overdraft prevention and interoperability. payments pricing. Robust educational programming While the Fed has taken initial steps with for account holders and toolkits for end users 2023 or 2024 in mind, the above suggested By Deborah Phillips will help ensure all are ready in advance for a approaches need to start now to accelerate September 23, 2020 swift and seamless launch. the launch. More than a year has passed since the But the release of information cannot The Fed decided to develop FedNow to Federal Reserve announced plans for a be a one-way street. The Fed must engage ensure instant payments are available at real-time payments system, and some of its with future FedNow users as part of the the nearly 11,000 financial institutions the staunchest advocates are eager to get it off development process. Including community agency already serves in an operational role. the ground. banks in FedNow pilot programs will ensure This need is not only essential, but urgent. While community banks strongly support the technologies and processes under Community banks have focused much the Fed’s decision to launch FedNow to development align with community bank of their attention in recent months on maximize access to instant payments, there is requirements and capabilities. responding to the coronavirus pandemic a growing push for the central bank to speed The Fed should also follow the usual notice and implementing the Paycheck Protection up implementation of the service. and comment process for developing FedNow Program, but they haven’t lost sight of the As the program itself attests — speed rules, which will help prepare the industry need for swift implementation of FedNow. matters. Consumers have already begun and avoid unintended consequences, Faster payments is critical to the future to expect to transfer funds instantly. To without allowing the rulemakings to create of community banks and their customers. accelerate the launch of FedNow and ensure delays or slow implementation. The Fed can help speed up the rollout of it is ready for users on day one, the Fed must In last month’s announcement, the this essential payments system by openly provide more information to future users and Fed said it is planning pilot programs, engaging community banks to the benefit of engage key stakeholders in the development focus groups and work groups on various Main Street communities nationwide. of the system. aspects of FedNow. This inclusive strategy is So far, the Fed is off to a good start. The commendable, but now is the time to act on Deborah Matthews Phillips is senior vice agency last month said it will take a phased these critical components to prepare for and president of payments and technology policy approach that will introduce FedNow’s expedite the launch. at the Independent Community Bankers of features over time to get it up and running Engagement must also extend to core America. as soon as possible. Under this plan, the processors and digital banking vendors to first release will focus on core clearing and ensure integration with existing systems. For

For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 25, 2020 AMERICANBANKER.COM PAGE 11

and they often make much smaller loans than the matter said. The change could boost DIVERSITY AND EQUALITY banks will typically make to small businesses, its balance sheet enough to become the bankers say. country’s sixth-largest bank, based on the CornerSquare Community Capital will be assets of the biggest commercial lenders last Truist a subsidiary of the nonprofit NC Rural Center, year. which has worked with small-business A spokeswoman for JPMorgan in Frankfurt commits owners in low- and moderate-income declined to comment. communities in the area for over three The assets to be shifted represent slightly decades. The new loan fund will also help the less than 10% of JPMorgan’s total balance $40M to loan NC Rural Center expand its own lending and sheet. The sum also represents almost half of small business development programs across the total assets held by German branches of fund aimed at Truist’s footprint, the company said. foreign banks at the end of June, according to “The first-of-its-kind fund provided by Bundesbank statistics. Truist will allow our selected CDFI partners With less than four months to go until the closing racial to do more with their existing capital, Brexit transition period expires, international enabling them to expand their reach and banks have been beefing up operations in wealth gap scope across Truist’s footprint and beyond, the European Union to make sure they can while increasing our collective support service clients given the prospect that U.K.- By Laura Alix of historically under-resourced small based firms, including JPMorgan’s London September 23, 2020 businesses,” NC Rural Center President operations, won’t retain passporting rights in Truist Financial in Charlotte, N.C., has Patrick Woodie said in the press release. a trade deal. committed $40 million to help establish a Truist named the Access to Capital for Given that increasingly likely prospect, new nonprofit loan fund intended to support Entrepreneurs in Georgia, the Black Business the bank last week told about 200 London diverse and women-owned businesses, with Investment Fund in Florida and the Texas- staff to move to continental European cities a particular focus on Black-owned small based LiftFund among the CDFIs that including Paris, Frankfurt, Milan and Madrid, businesses. CornerSquare would work with. It said the Bloomberg News has reported. The loan fund, CornerSquare Community loan fund may add more CDFI partners over However, it’s not just Brexit. JPMorgan Capital, will support community development time. has repeatedly said that its German unit will financial institutions by purchasing 25% loan seek market share in investment banking, participations. Doing so essentially frees up corporate banking and wealth management. capital so that CDFIs can make more loans to BREXIT As JPMorgan steadily strengthens its more small businesses. operations in Germany, the head of the “We’re proud to support these impactful Frankfurt-based unit, Dorothee Blessing, has CDFI partners who share our vision to JPMorgan been taking on additional responsibilities. support underserved communities and The bank has dropped to fourth place in provide a sustainable source of funding for to move German equity offerings this year to date, racially and ethnically diverse and women- from first place during the same period owned businesses that haven’t had access to last year, according to data compiled by the traditional lending market in the past,” $230 billion Bloomberg. It has slid to second place from Truist Chairman and CEO Kelly King said in first in M&A advisory in the country while a press release. of assets rising to fifth place from sixth in syndicated The $504 billion-asset Truist is the latest loans. bank to make a big-dollar commitment The bank has reassigned branches in toward alleviating racial and economic to Germany European hubs including Paris, Amsterdam inequality. Motivated by nationwide and Copenhagen to oversight by the Frankfurt protests over the death of George Floyd in under Brexit subsidiary, which is known as J.P. Morgan AG. Minneapolis, big banks including Bank of The unit has also indicated it plans to more America, Wells Fargo, U.S. Bancorp, PNC By Bloomberg News than triple its core equity by the end of this Financial Services Group and Citigroup, have September 23, 2020 year to 16.7 billion euros. all put up money to address the racial wealth JPMorgan Chase is moving about 200 While JPMorgan has made the biggest shift gap on various fronts. billion euros ($230 billion) from the U.K. to to Frankfurt, other banks have chosen to bulk CDFIs, minority depository institutions Frankfurt as a result of Britain’s exit from the up in Germany’s financial hub, including and other nonprofits often figure prominently European Union, a shift that will make it one Citigroup, UBS Group and Standard in these efforts. They are smaller and of the largest banks in Germany. Chartered. q frequently closer to the communities banks The U.S. bank plans to finish the migration aren’t reaching. They may be better able to of the assets to its Frankfurt-based subsidiary © 2020 Arizent and American Banker. work with borrowers with no or poor credit, by the end of the year, people familiar with All rights reserved.

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