Cross River Bank, which provides services to fintech and crypto firms like Visa and Coinbase, has been asked by the Federal Deposit Insurance Corporation (FDIC) to address weaknesses in its lending activities. On April 28, the FDIC disclosed a consent order stating that Cross River Bank had carried out “unsafe” or “unsound” banking practices regarding its compliance with applicable fair lending laws and regulations in 2021. While Cross River accepted the order, it has yet to confirm or deny the violations uncovered in the report.
The bank has been instructed to increase supervision over its internal controls, credit underwriting practices, and internal audit systems related to consumer protection laws and regulations. Cross River is also required to self-correct any violations of fair lending laws and address the weaknesses identified in its lending activities. By May 7, an independent third party must conduct a fair lending resources study and report, which the bank is required to submit.
