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Key interest rate reaches 22-year high
Posted Date: Friday, July 28, 2023
The Federal Reserve has raised the key interest rate again, resulting in the highest level in 22 years, as it continues to fight inflation.
“My colleagues and I remain squarely focused on our dual mandate to promote maximum employment and stable prices for the American people,” Fed Chairman Jerome Powell said during a press conference. “We understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to a 2 percent goal.”
Read on for more details about the hike.
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Court rules on whether digital token is a security
Posted Date: Friday, July 28, 2023
The U.S. District Court for the Southern District of New York ruled on a case where the Securities and Exchange Commission sued Ripple Labs, Inc. and two of its senior leaders for the unlawful offer and sale of securities in violation of the Securities Act of 1933.
The pivotal case is one of the first heard in a federal district court and determined whether digital tokens traded for value are considered securities under the act, setting the stage for further considerations.
Read on for more details.
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Compliance veteran speaks on creating a mentoring program
Posted Date: Friday, July 28, 2023
At the 2023 National Settlement Services Summit (NS3), SoftPro Director of Regulatory Compliance Leslie Wyatt presented a workshop on how to successfully establish a mentoring program.
In an interview, she shared specifics on what mentoring can do for both individuals and companies.
Read on for more.
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FTC issues policy statement on biometric information
Posted Date: Friday, July 28, 2023
In a policy statement on the use of biometric information and how it relates Section 5 of the Federal Trade Commission Act, the Federal Trade Commission (FTC) stated concerns about “deep fakes,” fraud, and discrimination as these technologies become more widespread.
Without clear disclosures and meaningful choice for consumers, the FTC stated consumers are afforded very few ways to avoid the risks or unintended consequences.
Read on for more details.
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New home purchase mortgage applications ‘a bright spot’ in market
Posted Date: Friday, July 28, 2023
Mortgage applications for new home purchases increased 26.1 percent year-over-year in June, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS).
Applications fell 5 percent from May.
Read on for more details.
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CFPB starts dialogue with European commission
Posted Date: Friday, July 28, 2023
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and Commissioner for Justice and Consumer Protection at the European Commission Didier Reynders announced in a joint statement that the two bodies are starting informal dialogue between themselves about issues of financial protection threatening consumers.
The primary focus will be on digital developments.
Read on for more details.
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ICE, Black Knight to sell Optimal Blue in bid to keep merger alive
Posted Date: Friday, July 21, 2023
In connection with Intercontinental Exchange (ICE) and Black Knight’s previously announced $13.1 billion proposed merger agreement for ICE to acquire Black Knight, the companies agreed to sell Black Knight’s Optimal Blue business to a subsidiary of Constellation Software Inc.
The sale is part of the companies’ efforts to secure regulatory clearance of the proposed acquisition, as the Federal Trade Commission is seeking to halt the deal.
Read on for more details.
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FedNow instant payment service now live
Posted Date: Friday, July 21, 2023
FedNow Service, the Federal Reserve instant payment system, went live July 20, available to any bank and credit union interested in the tool.
“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” Federal Reserve Chair Jerome Powell said. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.”
Read on for more details.
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Homes selling above asking for first time in 2023
Posted Date: Friday, July 21, 2023
The average sale-to-list price ratio exceeded 100 percent during the four weeks ending July 2, according to data from Redfin. This is the first time in nearly a year the average home is selling for more than its asking price.
Additional data showed the median home sale price was down just 0.3 percent from a year ago, when prices were at record highs.
Read on for more details.
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Mortgage credit availability ‘essentially unchanged’ in June
Posted Date: Friday, July 21, 2023
Mortgage credit availability increased very slightly in June, according to the Mortgage Bankers Association’s mortgage credit availability index.
Even so, it remained close to the lowest level in 10 years.
Read on for more details.
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KeyBank launches third special purpose credit program
Posted Date: Friday, July 21, 2023
KeyBank launched its third special purpose credit program, KeyBank Neighbors First Credit.
The program is designed to help homebuyers in underserved communities by providing credits for closing costs and other expenses that come with purchasing a new home.
Read on for more.
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New director of FinCEN named
Posted Date: Friday, July 21, 2023
The Secretary of the Treasury announced the appointment of a new director of the department’s Financial Crimes Enforcement Network (FinCEN).
The acting FinCEN director will remain with the agency during the transition process.
Read on for more details.
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Trade groups, AGs divided on CFPB’s abusive acts statement
Posted Date: Tuesday, July 18, 2023
A group of state attorneys general, as well as a coalition of financial services trade groups, are among those who submitted comments on the Consumer Financial Protection Bureau’s (CFPB) statement of policy regarding the prohibition of abusive acts or practices as spelled out in the Consumer Financial Protection Act of 2010.
The CFPB’s explanation of abusive conduct drew different responses from both groups.
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Date set for CFPB funding structure arguments before Supreme Court
Posted Date: Tuesday, July 18, 2023
Amidst the flurry of briefs filed by parties and friends of the court, the U.S. Supreme Court announced the date it will hear the oral arguments on the constitutionality of the Consumer Financial Protection Bureau’s funding structure.
The question before the court has the potential to challenge everything the bureau has done since its creation and could impact other agencies that have similar funding structures so as to insulate them from political sway.
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Merrill Lynch to pay $12M settlement for SARs filing failure
Posted Date: Tuesday, July 18, 2023
The Securities and Exchange Commission (SEC) levied charges against Merrill Lynch and parent company BAC North America Holding Co. for failing to file hundreds of suspicious activity reports (SARs) as required by the Bank Secrecy Act and the Securities Exchange Act of 1934.
Merrill Lynch agreed to pay a $6 million penalty to settle the SEC charges and a separate $6 million fine to the Financial Industry Regulatory Authority over the unfiled reports.
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Ex-bank director convicted of bank fraud
Posted Date: Tuesday, July 18, 2023
A federal jury found a former director of a New York bank guilty of five counts connected to a scheme to obtain a fraudulent $1.4 million loan from the bank, which collapsed months after the incident. The maximum sentence he faces on all charges is 125 years in prison.
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MISMO releases updated version of Life of Loan model
Posted Date: Tuesday, July 18, 2023
MISMO announced the final release of the latest version of the MISMO Life of Loan process model. Among other updates, the tool is now available as an online interactive version.
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Warren urges CFPB to finalize late fee rule
Posted Date: Tuesday, July 18, 2023
U.S. Sen. Elizabeth Warren (D-Mass.) sent a letter to Consumer Financial Protection Bureau Director Rohit Chopra highlighting findings from a recent investigation into late fee practices by credit card issuers and urging the bureau to finalize its proposed rule regarding late fees.
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Bank of America ordered to pay $250M for ‘double-dipping’ on fees
Posted Date: Friday, July 14, 2023
The Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay $100 million to consumers for “double-dipping” on fees for customers with insufficient funds, for withholding credit card rewards from customers and for opening phony accounts.
Bank of America also must pay $150 million in penalties to the CFPB and the Office of the Comptroller of the Currency.
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SEC files amicus brief in SCOTUS whistleblower suit
Posted Date: Friday, July 14, 2023
The U.S. Securities and Exchange Commission joined the U.S. Solicitor General in filing an amicus brief with the U.S. Supreme Court for Murray v. UBS Securities, LLC, which was granted certiorari in May.
The suit involved the anti-retaliation provision of the whistleblower protection section of the Sarbanes-Oxley Act of 2022.
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CFPB sends annual Fair Lending Report to Congress
Posted Date: Friday, July 14, 2023
The Consumer Financial Protection Bureau (CFPB) sent its annual Fair Lending Report to Congress. The report describes the bureau’s fair lending activities in enforcement and supervision, guidance and rulemaking, interagency coordination, and outreach and education for 2022.
Last year, the CFPB dedicated significant resources to aiding consumers and communities most affected by unlawful discrimination.
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Regional bank exposure in commercial real estate concerns Fed
Posted Date: Friday, July 14, 2023
In a recent address to the European Central Bank Forum on Central Banking, Federal Reserve Board of Governors Chair Jerome Powell stated the U.S. central bank is paying close attention to financial institutions that are heavily exposed to the commercial real estate sector.
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Mortgage rates hit new 2023 high
Posted Date: Friday, July 14, 2023
The 30-year fixed-rate mortgage rate reached its highest level for 2023 in the week of July 4, according to Freddie Mac, while mortgage applications climbed slightly.
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Dem Senators press CFPB on AI scams
Posted Date: Friday, July 14, 2023
Democratic members of the Senate Banking Committee, led by committee Chair Sherrod Brown (D-Ohio), sent a letter to Consumer Financial Protection Bureau Director Rohit Chopra, urging the consumer finance industry watchdog to take action to protect consumers from scams and fraud caused by artificial intelligence.
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NCUA issues cybersecurity, system resilience report
Posted Date: Tuesday, July 11, 2023
The National Credit Union Administration (NCUA) issued its report on cybersecurity and credit union system resilience to the House Financial Services Committee and the Senate Committee on Banking, Housing, and Urban Affairs. The report highlighted the actions taken by NCUA and credit unions to strengthen cybersecurity within the federally insured credit union system and the NCUA.
Read on for more details.
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Movement Mortgage to pay over $23M in fines to federal agencies
Posted Date: Tuesday, July 11, 2023
Movement Mortgage agreed to pay the United States $23.75 million to resolve allegations that it violated the False Claims Act by failing to comply with material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
Read on for more details.
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FTC announced update to advertising guides
Posted Date: Tuesday, July 11, 2023
The Federal Trade Commission (FTC) announced it finalized an updated version of its Endorsement Guides, which provide agency guidance to businesses and others to ensure that advertising with reviews or endorsements are compliant with federal law and regulations. This finalized version incorporated public comments received after the FTC’s May 2022 request for public comment.
Read on for more details.
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HUD requires supplemental information for FHA mortgages
Posted Date: Tuesday, July 11, 2023
The U.S. Department of Housing and Urban Development announced in Mortgagee Letter 2023.13 that lenders must use the Supplemental Consumer Information Form from Fannie Mae or Freddie Mac for all FHA-insured mortgage loans with application dates on or after Aug. 28.
Read on for more details.
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Waters seeks regulator input on crypto framework
Posted Date: Tuesday, July 11, 2023
Rep. Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, solicited viewpoints analysis and recommendations in letters sent to the Department of Treasury and the Securities and Exchange Commission, regarding a discussion draft of cryptocurrency legislative framework.
Read on for more details.
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Biden announces nominees to fill vacant FTC seats
Posted Date: Tuesday, July 11, 2023
President Joe Biden announced his nominees to fill the two vacant Republican seats of the Federal Trade Commission. The nominees are the current solicitors general of Virginia and Utah.
Read on for more details.
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FTC delays ICE, Black Knight merger hearing
Posted Date: Friday, July 7, 2023
The Federal Trade Commission (FTC) granted a joint motion from all parties postponing the start of the commission’s administrative hearings on the proposed acquisition of Black Knight by Intercontinental Exchange. The delay was granted to allow time for the U.S. District Court for the Northern District of California to rule on a motion by the FTC seeking a temporary restraining order and preliminary injunction to halt the acquisition until after the administrative hearing has concluded.
Read on for more details.
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CFPB files amicus brief in 'reverse redlining' case
Posted Date: Friday, July 7, 2023
The Consumer Financial Protection Bureau filed an amicus brief in support of a group of eight Black and Hispanic plaintiffs who alleged a bank and affiliated mortgage company violated the Equal Credit Opportunity Act and other laws by targeting Black and Hispanic borrowers and neighborhoods with predatory mortgage lending schemes.
Read on for more details.
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FFIEC releases 2022 HMDA data
Posted Date: Friday, July 7, 2023
The Federal Financial Institutions Examination Council made available the data on 2022 mortgage lending transactions that were reported under the Home Mortgage Disclosure Act (HMDA). The HMDA data was reported by 4,460 U.S. financial institutions, including banks, credit unions, and mortgage companies. The number of reporting institutions increased by 2.63 percent from the previous year.
Read on for more details.
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Bank regulators finalize CRE loan accommodations, workouts policy
Posted Date: Friday, July 7, 2023
The Federal Reserve Board of Governors, the Federal Deposit Insurance Corp., the National Credit Union Administration, and the Office of the Comptroller of the Currency released their finalized policy updates on commercial real estate loan accommodations and workouts.
Read on for more details.
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Fannie, Freddie prevent nearly 60,000 foreclosures in Q1
Posted Date: Friday, July 7, 2023
Fannie Mae and Freddie Mac helped keep nearly 60,000 homeowners in their homes in the first quarter, according to the Federal Housing Finance Agency’s recent Foreclosure Prevention and Refinance Report for first quarter 2023.
Read on for more details.
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Federal Reserve announces first FedNow adopters
Posted Date: Friday, July 7, 2023
The Federal Reserve announced the “early adopter” organizations that have been certified to use the FedNow real-time payment system ahead of its launch in late July.
Read on for more details.
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Regulators step up scrutiny of bank M&As
Posted Date: Thursday, July 6, 2023
The prudential regulators announced over a year ago that they intended to revisit and update much of the regulatory framework around mergers and acquisitions (M&A) for financial institutions. That's when the FDIC began the process of updating the Bank Merger Act regulations, as technology and market dynamics have caused significant changes since the act was passed in 1960.
As regulators begin to reveal some of these updates, we can begin to understand the new M&A framework that they intend to implement.
Click for more features in the Who's My Regulator? report
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The SEC and the ever-expanding definition of a security
Posted Date: Thursday, July 6, 2023
Cryptocurrency has been a hot-button issue for legislators and regulators in recent years, but which regulator is in charge of overseeing the issuance and use of the digital asset remains unclear.
The U.S. Securities and Exchange Commission (SEC) has asserted itself as the chief regulator, but time will tell if that remains true. The commission has yet to take a definitive position on whether all cryptocurrencies are securities. However, it has made the legal argument that cryptocurrencies are investment contracts.
Click for more features in the Who's My Regulator? report
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Artificial intelligence remains a regulatory gray-area
Posted Date: Thursday, July 6, 2023
Though artificial intelligence is not a new idea, its usefulness in banking has become more prevalent in recent years.
Regulators, however, have struggled to keep up with the adoption of these technologies. This may be because the technology is moving faster than the regulatory process does, eclipsing the speed of lawmakers who provide the agencies with the tools necessary to regulate these emergent technologies.
Click for more features in the Who's My Regulator? report
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Fintech partnerships bring new questions to old practices
Posted Date: Thursday, July 6, 2023
Third-party relationships are nothing new for banks and lenders, but working with financial technology (fintech) firms has brought about a new set of problems, and regulations, that all parties should be aware of.
In June 2023, regulators issued a long-anticipated joint update to the OCC’s 2013 guidance on risk management for banks engaging in third-party relationships. This new guidance provides risk management expectations when working with third parties, including fintechs.
Click for more features in the Who's My Regulator? report
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Providing some answers to your regulatory questions
Posted Date: Thursday, July 6, 2023
Dodd Frank Update Editor Logan Barno comments on some of the new and old practices regulators are focusing on and the experts that offered insight into current and upcoming regulation.
From mergers and acquisitions and third-party partnerships to fintech partnerships, artificial intelligence/machine learning (AI/ML) tools, and cryptocurrency, the “Who’s My Regulator?” report reviews which federal and state agencies are the primary regulators for those activities and the current state of regulations in each area.
Click for more features in the Who's My Regulator? report
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OCC tells banks to be cautious when considering AI
Posted Date: Wednesday, July 5, 2023
In remarks from Acting Comptroller of the Currency Michael Hsu to the American Bankers Association’s Risk and Compliance Conference, Hsu warned the unpredictability of artificial intelligence (AI) could pose significant risks to financial systems. Hsu further cautioned that banks must manage risks when adopting technologies such as digital assets and AI.
Read on for more details.
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CFPB examines southern states in latest reports
Posted Date: Wednesday, July 5, 2023
The Consumer Financial Protection Bureau released its reports on banking access and consumer finance in southern states. The reports highlight gaps and identify opportunities to improve financial outcomes for many Southerners.
Read on for more details.
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loanDepot charges competitor with poaching
Posted Date: Wednesday, July 5, 2023
loanDepot filed a lawsuit against Movement Mortgage, alleging the company engaged in a coordinated effort to “lure away” 25 of loanDepot’s former employees, “crippling” some loanDepot branches. The lender further alleged some of those former employees accessed and misappropriated confidential and trade secret documents when they left loanDepot’s employment.
Read on for more details.
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Mortgage applications on the upswing
Posted Date: Wednesday, July 5, 2023
The Mortgage Bankers Association Weekly Mortgage Applications Survey for the week ending June 23 indicated a 3 percent increase from the week before.
Read on for more details.
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US bank branch closures soar in May
Posted Date: Wednesday, July 5, 2023
The number of bank branch closures in the United States increased sharply in the month of May, with a net closure of 227 branches throughout the country. This is a 187.3 percent increase from April.
Read on for more details.
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Judge rejects Binance complaint over SEC press release
Posted Date: Wednesday, July 5, 2023
A federal judge rejected Binance.US’ attempt to limit the U.S. Securities and Exchange Commission’s use of language about Binance.US’ management of customer funds in the commission’s press releases, which the crypto exchange claimed could hurt it at trial.
Read on for more details.
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Fed reports large banks can survive severe recession
Posted Date: Friday, June 30, 2023
The Federal Reserve released the results of the 2023 Dodd-Frank Act Stress Test Scenarios, which assess how large domestic and foreign banks, as well as savings and loan holding companies, are likely to perform under hypothetical recessions. This year’s test found large banks are well positioned to weather a severe recession and to continue to lend during one.
Read on for more details.
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CFPB takes action against mortgage payment processor
Posted Date: Friday, June 30, 2023
The Consumer Financial Protection Bureau took enforcement action against ACI Worldwide and one of its subsidiaries, ACI Payments, for improperly initiating approximately $2.3 billion in unlawful, unauthorized mortgage payment transactions. The bureau further alleged ACI’s data handling practices negatively impacted nearly 500,000 homeowners with mortgages serviced by Mr. Cooper.
Read on for more details.
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SEC granted injunction against pre-IPO stock fraud scheme
Posted Date: Friday, June 30, 2023
The U.S. Securities and Exchange Commission obtained a preliminary injunction in federal court freezing the assets of and granting additional emergency relief against Legend Venture Partners LLC, a New York City-based unregistered broker-dealer, in connection with a fraudulent scheme to sell interests in private companies prior to its initial public offering.
Read on for more details.
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New home sales increased in May
Posted Date: Friday, June 30, 2023
Data from the U.S. Census Bureau and the Department of Housing and Urban Development indicated the sale of new homes in May increased from April.
Read on for more details.
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NAMMBA launches community lender certification program
Posted Date: Friday, June 30, 2023
The National Association of Minority Mortgage Bankers of America launched its new Certified Community Lender Designation program. This program is designed to enhance the skills and expertise of mortgage originators by providing them with the knowledge, resources and best practices to positively impact their communities.
Read on for more details.
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House bill would require chief risk officers at large banks
Posted Date: Friday, June 30, 2023
House Democrats introduced a bill that would codify regulatory requirements that large banks have a chief risk officer. The bill was introduced in reaction to failure of Silicon Valley Bank, which had no such officer in place for months before its collapse.
Read on for more details.
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