OCC Assesses $6 Million Civil Money Penalty Against Sterling Bank and Trust, FSB

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $6 million civil money penalty against Sterling Bank and Trust, FSB, Southfield, Mich. The OCC also terminated the June 18, 2019, Formal Agreement between the bank and the OCC.

The OCC’s penalty is based on violations of law and unsafe or unsound practices related to the bank’s Advantage Loan Program, a low-document mortgage loan program the bank offered between approximately 2011 and December 2019. The bank originated numerous Advantage Loan Program loans that were based on false or fraudulent loan information. The OCC also found underwriting deficiencies and Bank Secrecy Act/Anti-Money Laundering violations related to the Advantage Loan Program.

On June 18, 2019, the OCC and the bank entered into a Formal Agreement to remediate these unsafe or unsound practices and violations of law. The OCC has determined that the bank has implemented all corrective actions required by the Formal Agreement and is in compliance with all articles of the enforcement action. Therefore, the OCC has terminated the Formal Agreement.

The OCC’s civil money penalty assessed today will be paid to the U.S. Treasury.

The OCC continues to review the conduct of institution-affiliated parties subject to OCC jurisdiction who were associated with the now-ceased Advantage Loan Program. This work remains ongoing.

Related Links