Joseph Otting

Joseph M. Otting
Born	1957 Maquoketa, Iowa, U.S.
Occupation(s)	Banking executive, government official
Years active	1980s–present
Known for	31st Comptroller of the Currency (2017–2020)

Joseph M. Otting (born 1957) is an American executive and former government official who held the position of the 31st Comptroller of the Currency from November 27, 2017, until May 29, 2020.

Early life and education

Raised in Maquoketa, Iowa, Otting is the son of Grace and James Otting. He obtained a Bachelor of Arts degree in management from the University of Northern Iowa in 1981. In addition, he completed a multi-year program called the School of Credit and Financial Management in 1992, which includes four weeks of classroom instruction and is offered by the National Association of Credit Management at Dartmouth College.

Bank of America and Union Bank

Otting’s professional journey began at Bank of America, where he held various roles including branch management, preferred banking, and commercial lending. Between 1986 and 2001, he progressed through several leadership positions at Union Bank, such as deputy regional vice president, senior vice president, executive vice president, and group head of commercial banking.

U.S. Bank

From 2001 through 2010, Otting was employed at U.S. Bank, a subsidiary of U.S. Bancorp. His roles included Market President for Oregon (2001–2003), Executive Vice President and Manager for East Region Commercial Banking (2003–2005), and eventually one of eight Vice Chairmans overseeing the Commercial Banking Group. During this tenure, he also spearheaded U.S. Bank’s growth initiatives in California.

OneWest Bank

Between October 2010 and August 2015, Otting served as president, CEO, and board member of OneWest Bank, N.A., until its acquisition by CIT Group for $3.4 billion following regulatory approval. Subsequently, he assumed the role of President at CIT Bank and co-president of CIT Group until December 2015.

At OneWest, Otting collaborated closely with founder Steven Mnuchin, who had orchestrated the purchase of failed IndyMac Federal Bank from the FDIC in 2009 to establish OneWest. By 2014, the bank had evolved from focusing primarily on residential lending to operating as a full-service national bank.

In 2011, Otting entered into a consent order with the U.S. Office of Thrift Supervision concerning mortgage servicing and foreclosure protocols; this order was lifted in 2015 after compliance was verified. The bank did not enter into any payment agreement with the OCC, and an independent audit revealed a minimal error rate in foreclosure processes.

Upon departing CIT in December 2015, Otting’s total compensation for that year was reported at $24.9 million, which included a $12 million severance package.

During the merger between OneWest and CIT, consumer advocates and community organizations debated the bank’s efforts toward community redevelopment; some viewed the merger as advantageous for underserved areas.

In May 2017, the U.S. Department of Justice reached an $89 million settlement with CIT related to reverse mortgage servicing inherited from IndyMac and compliance with HUD foreclosure requirements. Following this settlement, CIT discontinued its reverse mortgage operations.

Flagstar Financial (formerly New York Community Bancorp)

On March 7, 2024, Otting was appointed as the Chief Executive Officer of New York Community Bancorp, Inc., the holding company for Flagstar Bank. Later in October 2024, New York Community Bancorp underwent a rebranding and adopted the name Flagstar Financial. Otting currently serves as Executive Chairman, President, and CEO of Flagstar Financial, Inc. and its subsidiary Flagstar Bank, N.A. After initially holding the positions of President and CEO starting April 1, 2024, he assumed the role of Executive Chairman for both boards on June 5, 2024.

Comptroller of the Currency

President Donald Trump nominated Otting for the position of Comptroller of the Currency on June 5, 2017. This office is responsible for supervising federally-chartered banks, savings associations, and federal branches of foreign banks operating within the United States. The Senate confirmed his nomination on November 16, 2017, and he officially took office on November 27.

The Comptroller directs the federal banking system and leads the Office of the Comptroller of the Currency (OCC), which oversees nearly 1,400 national banks and federal savings associations. The OCC’s core mission includes ensuring these institutions operate safely, provide equitable access to financial services, maintain fair treatment of customers, and adhere to applicable laws.

Additionally, the Comptroller holds a seat on the board of directors of the Federal Deposit Insurance Corporation (FDIC) and participates in significant financial regulatory councils.

During his Senate confirmation hearing in July 2017, Otting advocated for simplifying regulatory capital requirements and expanding banks' capacity to offer short-term, small-dollar loans—services he believed had been constrained by previous regulations.

Once in office, Otting focused on fostering job growth, reducing regulatory burdens, enhancing the attractiveness of the federal charter, and improving operational efficiency within the OCC.

In his initial testimony as Comptroller in June 2018, he stressed the importance of updating the Community Reinvestment Act (CRA), encouraging banks to responsibly address short-term credit demands, streamlining compliance with the Bank Secrecy Act, simplifying capital regulations including aspects of the Volcker Rule, and boosting OCC performance.

In May 2018, the OCC issued guidance supporting short-term small-dollar installment loans to assist banks in meeting consumer credit needs.

By July 2018, Otting announced that fintech firms could seek special purpose national bank charters—a policy designed to encourage innovation and broaden consumer options under federal oversight. This move reinforced federal preemption over state regulations for federally chartered banks.

In August 2018, the OCC invited public feedback on modernizing CRA regulations. Subsequently, in December 2019, alongside the FDIC, it proposed reforms aimed at strengthening CRA compliance by promoting increased lending in low-income neighborhoods.

The OCC finalized updates to CRA regulations in May 2020 while also establishing principles for responsible small-dollar lending to address consumers' short-term credit requirements. Although there was consensus among industry and community stakeholders on the necessity for CRA reform, many criticized Otting's revisions—community advocates expressed concerns about potential reductions in lending to low- and moderate-income areas; industry representatives raised issues regarding regulatory complexity and misalignment. The updated rules broadened the criteria defining qualifying low-income lending activities.

Otting’s experience at OneWest influenced regulatory scrutiny during its merger with CIT; regulators granted approval only after commitments were made to boost lending in underserved communities. Congresswoman Maxine Waters suggested that Otting’s approach to CRA reform was shaped by challenges encountered during this merger process.

In May 2020, following completion of CRA reforms, Otting announced his intention to resign as Comptroller. He officially vacated the position on May 21, 2020.

Federal Housing Finance Agency

On December 21, 2018, President Donald J. Trump designated Otting as the acting director of the Federal Housing Finance Agency (FHFA) following the conclusion of Director Mel Watt's tenure.

Personal life

Otting has assumed leadership positions across various business and civic organizations, such as the California Chamber of Commerce, Associated Oregon Industries, the Oregon Business Council, the Portland Business Alliance, the Minnesota Chamber of Commerce, and Blue Cross Blue Shield of Oregon. Additionally, he engaged with the Financial Services Roundtable, the Los Angeles Chamber of Commerce, and held roles on both the board and executive committee of the Los Angeles Economic Development Corporation.

His hobbies encompass golf, tennis, cross-training, and reading. Otting lives in Cold Spring Harbor, NY. In 2018, while living in Las Vegas, he was a co-owner of Southern Highlands Golf Club, Tennis Facility, and Spa.

Attribution

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