As news of the Microsoft outage stemming from a software update from cybersecurity company CrowdStrike broke on Friday, July 19, Dodd Frank Update reached out to several financial institutions and trade associations, asking whether they were impacted and to what extent.
The Financial Services Information Sharing and Analysis Center (FS-ISAC) provided the following details about the issue.
“The software update from security provider CrowdStrike has caused Microsoft Windows computers to crash but has not had a systemic impact to the financial services industry,” an FS-ISAC spokesperson said. “Core functions, including banking and payment processing, are largely functioning with some scattered effects. CrowdStrike has posted solutions that are already being implemented by many customers. FS-ISAC will continue to assess additional impacts to financial services.”
The Independent Community Bankers of America (ICBA) responded to our inquiry, saying the organization is monitoring the outage closely, in coordination with its partners and officials in the financial services sector to gather additional details and assess the impact on the industry.
A spokesperson for the Mortgage Bankers Association (MBA) said they had not heard any news of MBA member banks being impacted by the outage but noted the Nationwide Multistate Licensing System (NMLS) was temporarily forced offline. The NMLS is the system of record for non-depository financial services licensing or registration in participating state agencies. A request for confirmation regarding this tip has been submitted to the Conference of State Bank Supervisors, which operates the NMLS.
ICE Mortgage Technology’s Encompass status center, as of 12:46 p.m. PDT, had several tickets describing systems “impacted by a global third-party IT outage overnight.” The outage caused service disruptions affecting several companies that utilize Encompass, Velocify, and ICE Data & Document Automation tools, including a delay in correspondent pricing at Freedom Mortgage.
Dodd Frank Update is continuing to follow this story as it unfolds and will update this article as more information becomes available.