Joseph Michael Otting (born 1957) is an American businessman and government official. He served as the 31st Comptroller of the Currency from November 27, 2017Reuters (November 27, 2017). "Joseph Otting, former banker, sworn in as top U.S. bank regulator" Retrieved December 6, 2017. to May 29, 2020.OCC (May 21, 2020). "Comptroller of the Currency Joseph Otting to Step Down, Brian P. Brooks to Become Acting Comptroller of the Currency on May 29, 2020." Retrieved May 21, 2020.
Early life and education Otting grew up in Maquoketa, Iowa, the son of Grace and James Otting.Corrected parents after confirmation directly from Mr. Otting on December 5, 2017. Other cited sources incorrectly identified Daniel and Helen Otting.Straehley, Steve, and David Wallechinsky (July 7, 2017). “Comptroller of the Currency: Who Is Joseph Otting?” AllGov. Retrieved December 5, 2017.
He holds a Bachelor of Arts degree in management from the University of Northern Iowa, which he received in 1981. He is also a graduate of the School of Credit and Financial Management, a multi-year program that includes four-weeks of classroom instructionNational Association of Credit Management. “Graduate School of Credit & Financial Management (Brochure).” Retrieved April 26, 2019. offered by the National Association of Credit Management, which was held at Dartmouth College at the time he attended in 1992.Official Biography. "Joseph M. Otting." Office of the Comptroller of the Currency. Retrieved December 4, 2017.
Career Bank of America and Union Bank Otting started his career at Bank of America, where he held positions in branch management, preferred banking, and commercial lending.Official Biography . "Joseph M. Otting." Office of the Comptroller of the Currency. Retrieved December 6, 2017. From 1986 to 2001, Otting was with Union Bank, where he held roles including deputy regional vice president, senior vice president, executive vice president, and group head of commercial banking.
U.S. Bank Between 2001 and 2010, Otting worked for U.S. Bank, a subsidiary of U.S. Bancorp.Straehley, Steve, and David Wallechinsky (July 7, 2017). “Comptroller of the Currency: Who Is Joseph Otting?” AllGov. Retrieved December 6, 2017. Otting served as Market President of U.S. Bank in Oregon from December 2001 to June 2003 and as Executive Vice President and Manager of East Region Commercial Banking Group from June 2003 to April 2005.Bloomberg. Executive Profile: “Joseph Otting.” Retrieved December 6, 2017. Until his departure in 2010, he served as one of eight Vice Chairman, as the head of the Commercial Banking Group. In addition, during his tenure, he led U.S. Bank's efforts in California as the senior executive responsible for expansion in the region.
OneWest Bank Otting was president, CEO, and a board member of OneWest Bank, N.A.,"OneWest Bank Names Joseph Otting President, Chief Executive Officer and a Member of the Board." OneWest Bank Press Release. October 27, 2010. Retrieved June 24, 2014. from October 2010 until August 2015, when the bank merged with CIT Group, which purchased OneWest Bank for $3.4 billion, following regulatory approval.Peltz, James (August 3, 2015). “CIT Group closes $3.4-billion purchase of OneWest Bank in Pasadena.” Los Angeles Times. Retrieved December 4, 2017. See also OCC Letter, “Application to Merge CIT Bank, Salt Lake City, UT with and into OneWest Bank, N.A., Pasadena, CA.” July 21, 2015. He served as President of CIT Bank and co-president of CIT Group from August 2015 to December 2015.Macheel, Tanaya (December 9, 2015). "CIT Fires Otting, 13 More Executives in Post-OneWest Shuffling." American Banker. Retrieved December 4, 2017.
At OneWest, he worked closely with the bank's founder, Steven Mnuchin, who later became the U.S. Secretary of the Treasury.U.S. Department of the Treasury (February 13, 2017). “Steven T. Mnuchin Sworn in as Secretary of the Treasury.” Retrieved December 6, 2017. Mnuchin led a group that purchased the California-based residential lender, IndyMac Federal Bank, FSB, on March 19, 2009, from the FDIC to create OneWest, FSB, with the intent of turning around the failed bank.Federal Deposit Insurance Corporation. Failed Bank Information: Information for IndyMac Bank, F.S.B., and IndyMac Federal Bank, F.S.B., Pasadena, CA. Retrieved December 6, 2017. The FDIC established IndyMac Federal Bank, FSB, in 2008 when IndyMac Bank, F.S.B., failed and oversaw its operations through the sale which created OneWest, FSB.Federal Deposit Insurance Corporation (July 11, 2018). “FDIC Establishes IndyMac Federal Bank, FSB as Successor to IndyMac Bank, F.S.B., Pasadena, California.” Retrieved December 6, 2017. OneWest Bank, FSB, converted to a national bank and was renamed OneWest Bank, N.A., in February 2014, as the bank transitioned from a residential lender to a full-service bank.Office of the Comptroller of the Currency (February 20, 2014). Conditional Approval #1090. Retrieved December 6, 2017.
In 2011, Otting signed a consent order, in conjunction with 14 other large bank mortgage servicers, with the U.S. Office of Thrift Supervision regarding the bank's mortgage servicing and foreclosure practices.Office of Thrift Supervision (April 13, 2011). Consent Order No.: WN-11-011. Retrieved December 6, 2017. The OCC terminated that order on July 21, 2015, after determining that the bank “satisfied the terms of the 2011 foreclosure-related consent order” and completed the independent foreclosure review in accordance with the requirements included in the original 2011 order.Office of the Comptroller of the Currency (July 21, 2015). “OCC Approves OneWest Bank, N.A. - CIT Bank Merger; Terminates Foreclosure-Related Consent Order.” NR 2015-105. See also “Consent Order Termination” #2015-77. Retrieved December 6, 2017 OneWest did not enter into a payment agreement with the OCC, and in April 2014, the OCC published a reportOffice of the Comptroller of the Currency (April 30, 2014). “Report Highlights Status of Independent Foreclosure Review Payment Agreement.” NR 2014-65. Retrieved December 6, 2017. showing that an independent consultant found a relatively low error rate in the bank's mortgage and foreclosure activity covered by the regulator's order.Office of the Comptroller of the Currency (April 30, 2014). Foreclosure-Related Consent Orders Status Report: Observations, Payments, and Foreclosure Prevention Assistance. Retrieved December 6, 2017. When Otting left CIT in December 2015, the Wall Street Journal calculated that he earned $24.9 million in compensation for 2015, including a $12 million severance payment.Ensign, Rachel Louise (March 21, 2016). “CIT Chief John Thain Takes 9% Pay Cut on His Way Out.” Wall Street Journal. Retrieved December 4, 2017.
During the merger of OneWest and CIT, consumer advocates who protested against approval of the merger clashed with bank supporters, based on the community redevelopment and reinvestment activities of the bank.Reckard, E. Scott (February 26, 2015). “CIT Group, OneWest Bank say merger would be good for poor neighborhoods.” Los Angeles Times. Retrieved December 6, 2017. See also Kate Berry (February 26, 2015). “The Big Surprise at CIT-OneWest Merger Hearing: Lots of Support.” American Banker. Retrieved December 6, 2017, and The Center for Religion and Civic Culture (March 18, 2015). “L.A. Times, American Banker: Community Coalition Supports Bank Merger.” University of Southern California. Retrieved December 6, 2017.
In May 2017, the U.S. Department of Justice reached an $89 million settlement with CITFinkelstein, Brad, and Collins, Brian.(July 3, 2017). "DOJ's False Claims Act focus shifts to reverse mortgage servicers." American Banker. Retrieved April 8, 2019. involving a portfolio of reverse mortgage products acquired from the failed IndyMac Federal BankLane, Ben.(October 9, 2017). "CIT Bank selling Financial Freedom, exiting reverse mortgage business." HousingWire. Retrieved April 8, 2019. and compliance with HUD foreclosure requirements, which requires banks to complete resolution and foreclosure activities within an aggressive timeline.U.S. Department of Justice (May 16, 2017). "Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 Million." Press Release No. 17-534. Retrieved July 29, 2017.
Flagstar Financial (formerly New York Community Bancorp) On March 7, 2024, Otting was announced as the new CEO of New York Community Bancorp, Inc, parent company of Flagstar Bank. NYCB was renamed Flagstar Financial in October 2024.NYCB Rebrands as Flagstar Financial Banking Dive. October 17, 2024. Otting serves as Executive Chairman, President, and chief executive officer of Flagstar Financial, Inc. and of its bank subsidiary, Flagstar Bank, N.A. He was appointed Executive Chairman of both the Company and the Bank Boards effective June 5, 2024. He has served as president and chief executive officer of the Company and the Bank since April 1, 2024.Flagstar Financial Leadership Page
Comptroller of the Currency
On June 5, 2017, President Donald Trump nominated Otting to become the Comptroller of the Currency, responsible for overseeing federally-chartered banks, savings associations, and federal branches of foreign banks operating in the United States. The U.S. Senate confirmed him on November 16, 2017,Schroeder, Pete, and Patrick Rucker (November 16, 2017). “Ex-banker Otting confirmed as U.S. Comptroller of the Currency.” Reuters. Retrieved November 16, 2017. and he was sworn in on November 27, 2017.
The Comptroller of the Currency is the administrator of the federal banking system and chief officer of the Office of the Comptroller of the Currency (OCC). The OCC supervises nearly 1,400 national banks, federal savings associations, and federal branches and agencies of foreign banks operating in the United States. The mission of the OCC is to ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.Official Biography . "Joseph M. Otting." Office of the Comptroller of the Currency. Retrieved December 4, 2017.
The Comptroller also serves as a director of the Federal Deposit Insurance Corporation and member of the Financial Stability Oversight Council and the Federal Financial Institutions Examination Council.
During his July 27, 2017, confirmation hearing before the United States Senate Committee on Banking, Housing, and Urban Affairs, Otting voiced support for simplifying regulatory capital requirements and for bank's ability to provide short-term, small-dollar loans, which in his view had been pushed out of the federal banking system by previous regulatory action.C-SPAN (July 27, 2017). Comptroller of the Currency and Federal Reserve Nominations. Retrieved December 4, 2017.
During his swearing-in ceremony, Otting stressed that his priorities include job creation and economic discrimination, reducing regulations, enhancing the value of the federal charter, and ensuring the OCC operates as effectively and efficiently as possible.Office of the Comptroller of the Currency (November 27, 2017). "Joseph M. Otting Takes Office as the 31st Comptroller of the Currency." OCC News Release 2017-141. Retrieved November 27, 2017.
In his first testimony as Comptroller, Otting discussed his main priorities, which included modernizing the Community Reinvestment Act; encouraging banks to meet the short-term, small-dollar needs of their customers; making Bank Secrecy Act compliance work more efficiently; simplifying regulatory capital and Volcker Rule; and helping the OCC operate as efficiently and effectively as possible.Written Testimony Before the Committee on Financial Services. U.S. House of Representatives. June 13, 2018.