The St. Louis Fed and the attorneys general of Missouri and Illinois are among those supporting a nationwide effort by NeighborWorks America to help homeowners avoid loan modification scams. This initiative is designed to help homeowners in danger of or facing foreclosure protect themselves against loan modification scams, find trusted sources of help, and identify and report scam activity.
In addition to the advice you already give your customers, you can direct them and community organizations to www.loanscamalert.org, which contains various contact resources and the six red flags to look for in a scam.
The Federal Reserve Bank’s primary credit program, available through the discount window, may be a part of your institution’s liquidity management or contingency plan. Institutions are encouraged to periodically test their ability to borrow at the discount window to ensure that there are no unexpected impediments or complications. If your institution already has the discount window in your plans, you can easily complete a test by calling the Credit and Payment Risk Management Division at 1-866-666-8316 to request a small, one-day loan.
If the discount window is not a part of your institution’s liquidity management or contingency plans and you are interested in learning more about establishing a discount window relationship, including necessary documentation and collateral requirements, call the number above. Additional information can also be found on the discount window’s web site.
The Federal Reserve Board has authorized up to five small-value offerings of term deposits under the Term Deposit Facility to be conducted in coming months. Term deposits will be made available through an auction-based TDF that will offer fixed quantities of term deposits for a specified maturity date to eligible institutions. Term deposit auctions will generally include both a competitive auction and a noncompetitive tender option.
Your bank’s account-holders can now transfer funds easily to an unbanked receiver in 11 Latin American countries. The Federal Reserve is collaborating with Banco de México (The Central Bank of Mexico), Banco Rendimento and the Microfinance International Corporation (MFIC) to offer this remittance service.
Funds can be transferred to a bank location or a trusted third-party provider. This “account-to-receiver” service is an expansion of the Fed’s FedGlobalSM ACH Payments suite, which enables automated clearing house transactions between the United States and Canada, Mexico, Europe and Latin America. This feature dramatically improves the ability of U.S. depository financial institutions to enroll new customers who want to send funds back home to family members without bank accounts. The Reserve Banks work directly with Banco de México to provide the service to receivers in Mexico and with Banco Rendimento and MFIC to reach receivers in 10 other countries.