Cross River Bank has entered into a consent order with the Federal Deposit Insurance Corp. that requires the Teaneck, N.J., bank to seek FDIC approval before signing on any new fintech clients.
The FDIC’s March 8 order flagged the $9.2 billion-asset bank’s compliance with fair lending regulations and its inability to establish adequate internal controls. Cross State did not admit or deny the claims in the order.
The order gives Cross River 30 days to provide the regional director of the FDIC’s New York regional office with a list of all of the bank’s credit products “with an appropriately detailed description of each such … product and the third party offering it.”
The regional director will review and comment or provide a non-objection.
Cross River must seek and receive FDIC non-objection before signing on any new third parties or allowing any new third party to offer a credit product through the bank.