WASHINGTON -- The
Office of the Comptroller of the Currency (OCC) announced today a Formal
Agreement with The Laredo National Bank, Laredo, Texas, and its subsidiary,
Homeowners Loan Corporation (HLC).
The agreement requires
HLC to strengthen its policies and control systems to ensure compliance with
all applicable consumer protection laws, regulations and OCC guidance,
including, but not limited to, section 5 of the Federal Trade Commission
Act. It also requires HLC to reimburse
borrowers who were harmed by practices that occurred due to the lack of
appropriate controls.
The bank has since been
acquired by Banco Bilbao Vizcaya Argentaria S.A. (BBVA). The bank’s new
owners shared the OCC’s concerns and the directors of both the bank and HLC
voluntarily entered into the agreement to ensure that appropriate changes are
made and the affected borrowers are fully compensated.
The bank has agreed to
set aside at least $14 million to fund reimbursement payments to borrowers. The
total amount of reimbursement paid out will depend upon the number of borrowers
found to have been harmed pursuant to a process set out in the agreement, and
will be subject to final review by the OCC.
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.