Compliance & Regulatory News

NCUA Board Re-Schedules September Closed Meeting

ALEXANDRIA, Va. – The National Credit Union Administration Board has re-scheduled its September closed meeting.

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CUNA to Host Post-Data Breach Webinar w/ FS-ISAC

CUNA will join CUNA Mutual Group and the Financial Services Information Sharing Center (FS-ISAC) for a webinar Thursday on mitigating fraud risk in the wake of the Equifax data breach. Registration is now available for the call, which is open to CUNA and CUNA Mutual Group members only and is scheduled for 1 p.m. (ET) Thursday.

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Compliance: 'Mailbox rule' for TRID timing requirements

CUNA's compliance staff receives a number of questions about the TILA-RESPA integrated disclosure (TRID) rule, leading to publication of a recent CompBlog post addressing means of delivery and timing requirements for the Loan Estimate and Closing Disclosure forms.

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New Form I-9 Takes Effect Today

WASHINGTON -- Employers must begin using the new Form I-9 starting today. Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the U.S. All employers must ensure proper completion of Form I-9 for each individual they hire for employment in the U.S. This includes citizens and non-citizens. The federal government released the new form on July 17, the second such update this year, according to the news Web site HR Dive.

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NCUA Sets Budget Briefing for Oct. 18

Draft Budget Available Week of Oct. 2; Deadline for Comments Oct. 27

ALEXANDRIA, Va. – The National Credit Union Administration will hold a public briefing on its proposed 2018–2019 budget on Wednesday, Oct. 18, from 2 p.m. to 4 p.m. Eastern in the agency’s boardroom in Alexandria, Virginia.

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Education Department Ends Pact with CFPB, Cites Improper Actions

WASHINGTON – The Education Department, in a recent letter to CFPB Director Richard Cordray, said the bureau violated terms of a partnership with the department regarding the sharing of federal student loan information and announced that the pact will be terminated.

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Deadline Approaching for CUs to File Claims in Home Depot Suit

Credit unions have until Sept. 14 to file a claim for payment under the settlement reached between plaintiffs and Home Depot in that data breach lawsuit. CUNA, as well as leagues and credit unions, are among the plaintiffs in the lawsuit, which stems from a 2014 data breach that compromised 56 million credit and debit cards.

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Fed Releases Next Steps for Improving Payment System

The Federal Reserve recently outlined next steps to improve the nation's payment system. The Fed provided refreshed strategies and nine new tactics to achieve its desired outcomes with guidance from two national task forces to make payments faster and more secure.

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Regulators Update CECL FAQs Documents

The Federal Reserve, FDIC, NCUA OCC updated their frequently asked questions (FAQs) document on the Financial Accounting Standards Board's (FASB) current-expected-credit-losses (CECL) standard, focusing on regulatory and supervisory expectations, among other things.

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The Cost of Elder Financial Abuse Reported to Be 12 Times More Than Previously Believed

Over the past few years, a frequently cited estimate of the amount of money lost to elder financial abuse was $2.9 billion. This estimate included the caveat that the crime is largely underreported. A 2015 study by True Link reveals that elderly Americans lose $36.48 billion each year to financial abuse. This new study attempts to gather more of the unreported information and broaden the definition of elder abuse to include deceptive practices (even if technically legal).

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Why Bank Secrecy Act Reporting Matters

Credit union employees responsible for BSA compliance and reporting feel the burden of their work, but they don’t always see the connection to law enforcement actions. But BSA reporting does have real-world implications, according to FinCEN.

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The Final Countdown to Same-Day ACH: CUNA’s CompBlog Warns CUs Not to ‘Get Caught Flat Footed’

September 15 is almost upon us: the date of the second and most significant rollout of Same-Day ACH capabilities. If this comes as news to you, it’s safe to assume your credit union does not plan to originate Same-Day Debits for members in the early stages of its availability. This does not mean you’re able to sit on the sidelines as a spectator, however, CUNA’s latest CompBlog article points out.

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NCUA Grants $1.8M to Low-Income CUs

ALEXANDRIA, Va. – The NCUA awarded grants totaling more than $1.8 million to 251 low-income credit unions through the Community Development Revolving Loan Fund (CDRLF), the agency announced.

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CUNA Outlines way to Equitable, Proportional TCCUSF Refunds

CUNA followed up last week’s letter to NCUA on the closing of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) Tuesday with a letter on the agency’s proposal to update its share insurance rule in order to facilitate distribution of funds. Updating the rule addresses the only way allowed by the Federal Credit Union Act to distribute funds after closing the TCCUSF.

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CFPB Announces 2018 Reg. Z Thresholds

The Consumer Financial Protection Bureau (CFPB) announced 2018 thresholds applicable under Regulation Z last week. The bureau is required  to adjust on an annual basis certain thresholds under Regulation Z.

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Metsger: ‘We Will Carefully Weigh All Points of View’ on Stabilization Fund

Board Member Addresses NASCUS on Closure, Mergers Rule, Reorganization

SAN DIEGO, Ca. – National Credit Union Administration Board Member Rick Metsge reminded credit unions of the Sept. 5 deadline for submitting comments on the proposed plan to close the Temporary Corporate Credit Union Stabilization Fund and make a Share Insurance distribution in 2018, saying the agency “will carefully weigh all points of view.”

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CUNA Backs TCCUSF Closure Plan, Concerned with NOL Rise

CUNA fully supports NCUA’s proposed plan to close the Temporary Corporate Credit Union Stabilization Fund, merge its assets into the share insurance fund and repay credit unions a portion of stabilization fund premiums in 2018. CUNA is the only national trade association for credit unions advocating for refunds to begin in 2018.

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CFPB Announces Annual Dollar Thresholds in Truth In Lending Act Regulations For Certain Credit Transactions

Adjustments Based on Annual Percentage Change in Consumer Price Index

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) announced its annual adjustments to the dollar amounts of various thresholds under Truth in Lending Act (TILA) regulations that will apply to certain consumer credit transactions in 2018.

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CFPB Temporarily Changes Mortgage Data Rule Reporting Threshold for Community Banks and Credit Unions

Final Rule Also Clarifies Certain Requirements to Help Companies Comply

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) today issued a rule amending the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. The Bureau has temporarily changed reporting requirements for banks and credit unions that issue home-equity lines of credit, and clarified the information that financial institutions are required to collect and report about their mortgage lending. 

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NCUA Honors Trump’s Order to Roll Back Regulation with ‘Sweeping Reg Reform Plan’

ALEXANDRIA, Va. – The National Credit Union Administration (NCUA) recently revealed “its sweeping regulatory reform plan” which aligns with President Donald Trump’s order to massively scale back government regulations. Trump’s executive order, released in January, asks that for every one new regulation issued, at least two prior regulations be identified for elimination.

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What You Need to Know About Demand Letters and UDAAP

In CUNA's latest Back to Basics blog post, Michael Christians discusses the deceptive prong of the Consumer Financial Protection Bureau's (CFPB) prohibition against unfair, deceptive and abusive acts and practices (UDAAP). Specifically, identifying language that may be included in your credit union's demand letters that likely won't pass the UDAAP smell test.

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NCUA Board Meeting Video Available

ALEXANDRIA, Va. – The video recording of the July 20, 2017, open meeting of the National Credit Union Administration Board is now available on the agency’s website.

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Stabilization Fund Webinar Available Online

Comments on the Proposed Plan Due by Sept. 5
ALEXANDRIA, Va. — The National Credit Union Administration has now posted the Aug. 9 webinar covering its proposed plan to close the Temporary Corporate Credit Union Stabilization Fund.

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NCUA Seeks Comments on Sweeping Regulatory Reform Plan

Four-Year Plan Maps a “Significant and Comprehensive Relief Effort”
ALEXANDRIA, Va. – The National Credit Union Administration is asking credit union stakeholders to read and comment on a package of regulatory reforms recommended by an internal agency task force.

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DoD Reaffirms October 3rd MLA Effective Date for Credit Cards

Despite CUNA's ongoing advocacy efforts with the Department of Defense (DOD) to extend the Military Lending Act's (MLA) effective date for credit card accounts, DOD recently reaffirmed the October 3, 2017 effective date. 

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Final TRID Rule Analysis Available

WASHINGTON -- CUNA’s final rule analysis of the Consumer Financial Protection Bureau’s (CFPB) changes to the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule is now available. The bureau published the final rule in the Federal Register last week, making it effective Oct. 10, with a mandatory compliance date of Oct. 1, 2018.

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Back-2-Basics: ESIGN

The Electronic Signatures in Global and National Commerce Act of 2000 ("ESIGN") promotes the use of electronic signatures and records in commercial transactions by granting them the same legal validity and enforceability as paper records and handwritten signatures.

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CUNA Final Rule Analysis: TRID 2.0

CUNA Compliance is pleased to announce publication of its Final Rule Analysis ("FRA") which discusses the Consumer Financial Protection Bureau's ("CFPB") recently issued rule amending the Integrated Disclosure Rule ("TRID").

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CFPB Unveils Prototypes of "Know Before You Owe" Overdraft Disclosure Designed to Make Costs and Risks Easier to Understand

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) unveiled new Know Before You Owe overdraft disclosure prototypes designed to improve the model form that banks and credit unions already provide to consumers weighing overdraft coverage. The Bureau is currently testing four prototypes that each have a simple, one-page design aimed at making the costs and risks of opting in to overdraft coverage easier to understand and evaluate. People who frequently attempt to overdraw their checking accounts typically pay almost $450 more in fees if they opted in to debit card and ATM overdraft coverage, according to a new CFPB study published today. The study found that most of these frequent overdrafters are financially vulnerable, with lower daily balances and lower credit scores than people who do not overdraft as often.

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NCUA’s Final CDFI Qualification Round Runs Aug. 7 to Sept. 1

Streamlined Application Process Can Help Eligible Credit Unions

ALEXANDRIA, Va. – The National Credit Union Administration is hosting its third and final round for credit unions to qualify to use the streamlined application for certification as community development financial institutions.

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Shine a Spotlight on Elder Financial Abuse

Elder abuse affects an estimated five million victims annually, and financial exploitation is among the most common forms.

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Compliance Alert: Enforcement of Stricter Public Record Standards

Since July 1, the three nationwide consumer reporting companies (Equifax, Experian and TransUnion) began enforcing stricter standards on the public records they collect. As part of the previously announced National Consumer Assistance Plan (NCAP), the credit bureaus have developed “enhanced” public record data standards for the collection and timely updating of civil judgments and tax liens.

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View MBL Guidance as a ‘Road Map’

As NCUA begins carrying out examinations under the revised member business lending (MBL) rule, credit unions need to ensure their lending operations meet all of the rule's criteria.

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The Importance of Applying Software Updates, AKA Patches, and Enabling Automatic Updates

What are patches? A “patch” is a fix, or an update to software. Most software vendors release updates to patch or fix vulnerabilities, flaws, and weaknesses also known as bugs in their software. Because intruders can exploit these bugs to attack your computer, keeping your software updated is important to prevent infection.

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NCUA Board Re-Schedules September Meetings

ALEXANDRIA, Va. – The National Credit Union Administration Board has re-scheduled its September open and closed meetings to Thursday, Sept. 28, beginning at 10 a.m. Eastern.

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NJCUL Hosts Another FREE Compliance Webinar Regulatory Update: BSA Awareness

HIGHTSTOWN, N.J. – On Friday, NJCUL’s Shared Compliance Manager, Donna Pancoast, CUCE, BSACS, hosted a FREE regulatory update webinar entitled “Bank Secrecy Act Awareness”, which is now archived and available for member credit unions.

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NCUA Board Proposes Closing Stabilization Fund and Providing a Distribution in 2018

ALEXANDRIA, Va. – The NCUA board Thursday unanimously approved a request for comment on a proposed plan to close the Temporary Corporate Credit Union Stabilization Fund this year, 4 years ahead of schedule. The proposed plan would provide credit unions with a National Credit Union Share Insurance Fund distribution in 2018, estimated to be between $600 million and $800 million.

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NCUA Announces Plans to Restructure: Regional Offices Will Consolidate; Staffing Will be Reorganized

ALEXANDRIA, Va. — Greater efficiency, responsiveness, and cost-effectiveness are goals of a long-range agency restructuring plan the National Credit Union Administration Board announced today.

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June 2017 NCUA Board Meeting Video Available

ALEXANDRIA, Va. – The video recording of the June 23, 2017, open meeting of the National Credit Union Administration Board is now available on the agency’s website.

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Additional Resources Have Been Posted to the CFPB’s Home Mortgage Disclosure Act (HMDA) Resources for HMDA Filers Web Page

The Resources for HMDA Filers Web page of the Consumer Financial Protection Bureau’s site has been updated with additional resources. Modifications have been made to the Technology Preview, Filing Instructions Guide for data collected in 2017, Filing Instructions Guide for data collected in or after 2018, and Frequently Asked Questions (FAQs).

These materials are also accessible from the FFIEC website.

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PowerComment is Moving!

PowerComment, the easy to use online tool that allows you to comment on new or proposed regulation, is moving from CUNA, returning to the California and Nevada Credit Union Leagues.  Never fear, you will still be able to use PowerComment, however, you will no longer have to use your CUNA login. However, you will be required to create a new PowerComment login. As always, feel free to contact NJCUL’s VP of Compliance and Regulatory Affairs, Nicola Foggie, first for help navigating the latest in proposed regulations or changes to state and federal laws, as well as help in writing and submitting a comment letter at nfoggie@njcul.org or call 1-800-792-8861, ext. 112.  Commenting on new or changed regulation is the best way to allow your voice to be heard! 

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NCUA Chairman McWatters Asks CFPB Director Cordray to Exempt Largest Credit Unions from CFPB’s Examination and Enforcement Authority

Letter Stresses Cooperation to Ease Burdens on Credit Unions

ALEXANDRIA, Va. – National Credit Union Administration Chairman J. Mark McWatters wrote Consumer Financial Protection Bureau Director Richard Cordray to request CFPB provide a conditional exemption for credit unions with assets of more than $10 billion from its examination and enforcement authority.

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CUNA Hosting Webinar to Examine Oct. 3 MLA Credit Card Expansion

CUNA will host a special webinar, “Military Lending Act Part Two: New Credit Card Rules Effective Date Oct. 3, 2017,” on July 13 at 11 a.m. (CT). The webinar will analyze the impact of the Oct. 3 expansion of the Military Lending Act (MLA), which will add credit cards to the list of loan products governed by the regulation.

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CFPB Files Complaints Against Two Credit Repair Companies

WASHINGTON – The CFPB filed two complaints and proposed final judgments in federal court against four California-based credit repair companies and three individuals for misleading consumers and charging illegal fees. The Bureau alleges that the companies not only charged illegal advance fees for credit repair services, but also misrepresented their ability to repair consumers’ credit scores.

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CFPB Releases State-Level Snapshot of Consumer Complaints

Report Provides National and State-by-State Overviews of the Complaints Submitted to the Bureau

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) released a special edition of its monthly complaint report, providing a snapshot of consumer complaints submitted across the country. For each state and the District of Columbia, the report provides statistics on complaint volume, the products and services generating the most complaints, company response rates, and a look at complaints from servicemembers and older Americans. The report also gives a national overview and spotlights narratives submitted by consumers regarding their experience with the CFPB’s complaint process. Overall, the Bureau has received over 1,218,600 complaints as of June 1, 2017.

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McWatters Named NCUA Chairman

ALEXANDRIA, Va. – President Donald J. Trump has designated Acting National Credit Union Administration (NCUA) Board Chairman J. Mark McWatters as the tenth Chairman of the NCUA Board, effective June 23.

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NCUA June Meeting Summary

NCUA's agenda for the June meeting consisted of three final rules, a proposed rule, a request for comment, and a board briefing.

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NCUA Issues Legal Opinion Pertaining to a Federal Credit Union's Authority to Issue and Sell Securities

In a recently released opinion letter, NCUA opined that a federal credit union can issue and sell securities as long as it meets the three-pronged test detailed in 721.2 of NCUA's regulations that covers items considered incidental powers even though the activity is not considered preapproved under 721.3.

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CUNA Analysis of FHLB Change Starting July 5

With privately insured credit unions that meet certain requirements eligible to join the Federal Home Loan Bank (FHLB) program starting July 5, CUNA has developed a final rule analysis with an overview of new requirements.

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CUNA Analysis of FHLB Change Starting July 5

With privately insured credit unions that meet certain requirements eligible to join the Federal Home Loan Bank (FHLB) program starting July 5, CUNA has developed a final rule analysis with an overview of new requirements. The FHLB program serves as a low-cost source of liquidity for financial institutions.

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CUNA Outlines Recent Changes to CUNA's MAPR Calculator

If you have visited CUNA's MAPR calculators recently, you might have noticed a few changes. CUNA currently offers a Closed-End Loan calculator with a Known Monthly Payment and an Open-End Loan calculator.

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Scam Alert: The FTC Doesn’t Need Your Bank Info

Some people have gotten an email that claims to be from Maureen Ohlhausen, the FTC’s Acting Chairman. But it’s not. The email asks you to give your bank account information – so, it says, you can get money from the government’s settlement with Western Union. The email is a scam to steal your financial information.

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NCUA Releases New Call Report Form, Instructions

ALEXANDRIA, Va. – NCUA has released its new call report form and accompanying instructions, which become effective Sept. 30. For credit unions engaged in commercial lending, most notable are the updates reflecting the January 2017 changes to the member business lending (MBL) rule.

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CUNA CompBlog: Federal Reserve Raises Federal Funds Interest Rates

On Wednesday June 14, 2017, the Federal Open Market Committee (FOMC), which sets monetary policy for the federal Reserve, announced it would raise interest rates by a quarter point (0.25%) due to increasing concern over tight labor markets and the related risk of rising inflation pressures, bringing the target range to 1.00% to 1.25%.

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CUNA’s CompBlog Dicusses Escrow Account Shortages and Deficiencies

In this installment of the CUNA CompBlog Back to Basics series, CUNA discusses a credit union's available options for handing escrow account shortages and deficiencies under the Real Estate Settlement and Procedures Act (RESPA). An escrow shortage or deficiency occurs when there is not enough money in the escrow account to cover the monthly payment. This can happen for a variety of reasons, but one of the most common reasons is an increase in property taxes, usually the result of the borrower's property assessment going up. So what should a credit union do when an increased tax or insurance bill comes in and the account does not have sufficient funds to cover the payment.

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NCUA Board Re-Schedules June Meetings

ALEXANDRIA, Va. – The National Credit Union Administration Board has re-scheduled its June open and closed meetings.

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McWatters Discusses Goals for Change

NCUA Working to Provide Regulatory Relief, Close Stabilization Fund

WASHINGTON – Credit unions can expect more regulatory relief and streamlined operations from the National Credit Union Administration in the future, Acting Board Chairman J. Mark McWatters said recently.

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NCUA's New Call Report Form and Instructions are Now Available!

NCUA has released its new 5300 Call Report Form and accompanying Form Instructions, which become effective September 30, 2017.  This release is especially important for credit unions engaged in commercial lending because the previous version of the call report had not yet been updated to reflect the January 2017 changes to the Member Business Loans (MBL) rule.

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Register Now for NCUA’s Upcoming CDRLF Grant Webinar

Interested in applying for a NCUA grant this year? Staff from NCUA’s Office of Small Credit Union Initiatives will discuss what’s new and improved for the 2017 Community Development Revolving Loan Fund grant program during a 90-minute webinar on Wednesday, June 14th at 2:00 p.m. Eastern.

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FinCEN to Update Currency Transaction Report

In August of 2017, the Currency Transaction Report (CTR) available on the BSA E-Filing System will be updated to adhere to the changes defined in Federal Register notice posted on February 20th , 2016. New or updated data fields will be added to the online discrete CTR as well as the CTR batch files. The new or updated data fields are...

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Today: Deadline for NCUA Consulting Nominations

The deadline for credit union nominations for the next Consulting cycle is today, May 31 at 5 p.m. Eastern.

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FinCEN Changes to CTR Start in August

The Currency Transaction Report (CTR) available on the Bank Secrecy Act (BSA) e-filing system will be updated in August, the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced last week. These changes are defined in a Federal Register notice published by FinCEN in February.

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NCUA Issues Second Quarter Newsletter

Read the latest issue of The NCUA Report

ALEXANDRIA, Va. – The National Credit Union Administration released today the second quarter edition of its newsletter.

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NCUA Board Proposes Rules on Mergers, Appeals

Stabilization Fund Reports Continued Positive Net Position

ALEXANDRIA, Va. – The National Credit Union Administration Board held its fourth open meeting of 2017 at the agency’s headquarters last week and unanimously approved three items...

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Compliance: Safe Harbors for Federal Benefit Garnishment

CUNA’s compliance staff was recently asked about a garnishment order for a member’s account that receives federal benefits. The credit union performed a 2-month account review, which determined the member did not have enough “unprotected funds” to honor the garnishment order, and the member contacted the credit union to request the order be paid in full using those funds.

Can the credit union do this?

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Second CDFI Streamlined Certification Invitation Round Closes May 26

Federally insured low-income credit unions can now apply for certification as community development financial institutions through the streamlined application process developed by NCUA and the Community Development Financial Institutions Fund. The second round of NCUA’s program closes May 26.

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NCUA: Be Sure Your Cyber Defenses are Ready

ALEXANDRIA, Va. – In the wake of the “WannaCry” global ransomware attack, the National Credit Union Administration (NCUA) reminds federally insured credit unions to verify they have effective controls in place to prevent similar attacks.

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April 2017 NCUA Board Meeting Video Available

ALEXANDRIA, Va. – The video recording of the April 20, 2017, open meeting of the National Credit Union Administration (NCUA) Board is now available on the agency’s Web site.

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May 25 Webinar Precursor to CUNA Reg Burden Study

Credit unions interested in participating in CUNA’s updated regulatory burden study are urged to register now, in time for an introductory webinar scheduled for next week.

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A Look at the SCRA’s 6% Interest Rate Cap

The Servicemembers Civil Relief Act (SCRA) is designed to protect individuals on full-time active military duty who have been materially affected by their service. A recent CUNA CompBlog back-to-basics post examines one significant aspect of the SCRA: the 6% interest rate limit.

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Federation Hosting Live Webinar Demo of FFIEC Risk Assessment Tool May 23rd

Join the National Federation of Community Development Credit Unions (Federation) on May 23rd for a live demo of the FFIEC Cybersecurity Assessment Tool, developed by the Federal Financial Institutions Examination Council (FFIEC) to help institutions identify their risks and determine their cybersecurity preparedness. 

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Collateral, LTV, Guarantees in New MBL Rule

ALEXANDRIA, Va. – NCUA’s member business lending (MBL) rule has been in effect for more than five months now, and credit unions are still working on implementing the rule’s changes.

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NCUA Settles Two MBS Suits, Recoveries Hit $5.1 Billion

ALEXANDRIA, Va. – NCUA announced two large legal recoveries this week from claims relating to mortgage-backed securities: $445 million from UBS and $400 million from Credit Suisse. The recoveries stem from claims arising from losses related to purchases of securities by corporate credit unions.

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CUNA, Leagues Urge CUs to Share Reg. Burden Costs for Updated Study

WASHINGTON – CUNA and the state leagues are seeking credit unions to participate in a relaunch of its regulatory burden study to provide 2017 data on the costs of regulations.

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Comments on Alternative Capital Proposal Due May 9

ALEXANDRIA, Va. – The NCUA Board is considering changes to the existing secondary capital regulation and whether to authorize federally insured credit unions to issue supplemental capital instruments that would only count toward a credit union’s risk-based net worth requirement. Comments on the advance notice of proposed rulemaking are due May 9.

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NCUA Issues Updated Guidance on Compliance Risk Indicators

ALEXANDRIA, Va. – NCUA has recently provided its examiners with guidance on the updated list of compliance risk indicators that are part of NCUA’s Risk-focused Examination Program. The updated list of indicators does not impose any new or higher supervisory expectations for credit unions.

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CFPB Sues Online Lenders Over Debt Collection

WASHINGTON – The CFPB has filed suit against four online lenders for allegedly collecting debts they were not legally owed. The CFPB said the action fell under the Dodd-Frank Act's prohibition against unfair, deceptive or abusive acts and practices (UDAAP) and that the companies violated the Truth in Lending Act. 

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NCUA, CDFI Fund to Host a Conference Call for Low-Income CUs Interested in Becoming a CDFI

ALEXANDRIA, VA – NCUA announced that it will hold a conference call on May 9 at 2 p.m. for credit unions that have questions about the Community Development Financial Institutions Fund (CDFI) certification application or process.

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CFPB Fines Servicemember Auto Lender $1.25M for Order Violation

WASHINGTON – The CFPB issued another fine against Security National Automotive Acceptance Company, an auto lender that specializes in loan made to servicemembers, requiring them to pay an additional $1.25 million for violating the bureau's 2015 consent order. 

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McWatters: CUs Have Until Next April 1 to Comply With Prepaids Rule

 NCUA Acting Chairman J. Mark McWatters told federally-insured credit unions in a letter that compliance with the CFPB's prepaid accounts rule will begin on April 1, 2018, in light of the bureau's recent delay of the rule's effective compliance date.

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Fraud Alert: Members Romanced Into Providing Login Credentials and Money

Romance and dating scams continue to victimize credit union members nationwide. Fraudsters ultimately convince them to provide account login credentials. These scammers then login to the account and use ACH debits or enroll for mobile remote deposit capture to deposit fraudulent checks. The members subsequently transfer the funds to the scammer before the ACH debits or checks are returned. Read the full alert here. 

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CFPB 'Snapshot' Report Reviews Student Loan Complaints

Student loan borrowers continue to complain about poor information from and sloppy practices by servicers, according to the CFPB's monthly consumer "snapshot" report issued recently. As of April 1, the bureau has handled about 44,400 student loan complaints from consumers. 

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Availability of Oral Disclosures Under the DoD's MLA Rule

The MLA requires a statement of the MAPR and a clear description of the covered borrower’s payment obligation to be provided to the covered borrower orally. Creditors may satisfy this requirement by providing the information to the covered borrow in person at a face-to-face meeting or through a toll-free telephone number. 

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Trade Associations Back Consumer Protections in PACE Loans

Twenty-eight trade associations lodged strong support for legislation that would bring financing for Property Assessed Clean Energy (PACE) loans under the same Truth in Lending Act consumer protections required of other mortgage products. The "Protecting Americans from Credit Entanglements Act of 2017" (S. 838/H.R. 1958) would require federal TILA-rooted requirements and considerations for PACE loans – including the CFPB's ability-to-repay and qualified mortgage rules, among other standards. PACE loans enable mortgage borrowers to finance environmentally friendly home upgrades, such as solar panels and energy efficient appliances.

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Court Denies CFPB Subpoena in For-Profit College Probe

The U.S. Court of Appeals for the District of Columbia Circuit on Friday upheld a lower court decision to deny the CFPB's attempt to subpoena information from the Accrediting Council for Independent Colleges and Schools, an organization that accredits for-profit colleges. The bureau's subpoena is the latest in a pattern of interest on the bureau's part in the for-profit college industry.

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Phase 2 of Same-Day ACH Coming Sept. 15

The second phase of same day automated clearing house (ACH) roll-out has a Sept. 15th effective date, and NACHA- The Electronic Payments Association has released a list of recommended action items to be performed before that date. All financial institutions must be prepared to receive same-day ACH debits by Sept. 15th, even if not originating them. NACHA emphasizes that “even those not planning to use same-day processing for ACH debits should take reasonable care to prevent unintentional same-day ACH debits." Other action items include:

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Supreme Court Hears Debt Collection Case

The Supreme Court heard arguments in a case brought under the Fair Debt Collection Practices Act that could, depending on how the court decides, affect financial institutions' debt collection activities. The case originated from a suit brought by auto loan borrowers against Santander Consumer USA. Its central question is whether Santander should be regulated as a debt collector after it purchased auto loan debts the borrowers had owed to CitiFinancial. 

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Comments on Alternative Capital Proposal Due May 9th

The NCUA Board is considering changes to the existing secondary capital regulation and whether to authorize federally insured credit unions to issue supplemental capital instruments that would only count toward a credit union’s risk-based net worth requirement. Comments on the advance notice of proposed rule-making are due May 9. 

Questions? Contact NJCUL's Vice President, Compliance & Regulatory Affairs, Nicola Foggie, at nfoggie@njcul.org. 

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CUNA TO PREPARE UPDATED STUDY ON REGULATORY BURDEN COST

WASHINGTON -- CUNA seeks to update its groundbreaking study on the costs of regulatory burden this year, and will begin reaching out to credit unions in the coming weeks, CUNA Chief Policy Officer Bill Hampel said Monday. CUNA’s study, conducted by Cornerstone Advisors, found that in 2014 alone, regulatory burden cost credit unions $7.2 billion.

“It’s been a few years, and the data isn’t exactly stale as these things go,” Hampel said. “It would be nice to check in and see what the numbers are, to see whether the cost has gone up.”

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Back 2 Basics: 5 Steps to Follow When You Receive a Garnishment Notice

1. Determine whether a “Right to Garnish Federal Benefits” is Attached - Prior to taking any other action related to a garnishment order, and no later than two business days after receiving the order, a credit union must review the order to determine if the United States or a State child support enforcement agency has attached or included a Notice of Right to Garnish Federal Benefits. If such a notice is attached or included with the garnishment order, then the credit union must

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CFPB Issues HMDA Proposal, Initial Analysis Favorable

The CFPB issued a proposal designed to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. Initial analysis suggests the changes will be favorable for credit unions, and CUNA will continue to examine the proposal for potential unintended consequences. The proposal would clarify information financial institutions are required to collect and report about mortgage lending. Specifically, it contains a number of clarifications, technical corrections and minor

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New CUNA Compliance Resource! HMDA Data Collection Flow Chart

As you know, in October 2015, the CFPB finalized amendments to the Home Mortgage Disclosure Act (“HMDA”). Among these were modifications to the government monitoring information (“GMI”) data collection requirements found in Appendix B to Reg C. In summary, Appendix B now contains very specific instructions on how a credit union must collect and report GMI about a HMDA reportable transaction. This includes procedures for both face-to-face as well as telephone, mail and online

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CUNA CompBlog: The IRS Issues New FATCA FAQs

The IRS has published a new list of FATCA related FAQs. Like previous FAQs, most will not apply to U.S. credit unions. The following is an example of a Q&A that some of you may be interested in: 

"Are U.S. Financial Institutions (USFIs) required to register under FATCA? If so, under what circumstances would a USFI register? Does it matter whether the USFI has a branch in an IGA jurisdiction?

A USFI is generally not required to register under FATCA, regardless of whether it maintains a foreign branch.  However, a USFI must register if the USFI chooses to become a Lead FI and/or a Sponsoring Entity, or if the USFI seeks to maintain QI status with respect to one or more of its foreign branches. Also, a USFI with a foreign branch that is a reporting Model 1 FFI must register (and identify each such branch when registering).

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NCUA Warns of Fake Check Scams

​Consumers Should Be Vigilant and Avoid Depositing Checks from Unknown Parties

ALEXANDRIA, Va. – Consumers should be on the lookout for fake check scams, the National Credit Union Administration warned after receiving numerous inquiries from consumers.

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NCUA Schedules Special Closed Board Meeting

ALEXANDRIA, Va. – The National Credit Union Administration Board has scheduled a special closed meeting for Wednesday, April 12, 2017, beginning at 1 p.m.

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InfoSight Highlight: FFIEC Cybersecurity Assessment Tool

The Assessment consists of two main components; the Inherent Risk Profile and the Cybersecurity Maturity. The Inherent Risk Profile helps the institution understand how their products and services contribute to the institution’s overall inherent risk and whether specific categories pose more risk than others. The Cybersecurity Maturity component contains assessment factors and individual declarative statements across five main domains to identify specific controls and practices. While management can determine the institution’s maturity level in each area, the Assessment is not designed to identify an overall cyber security maturity level.

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New NCUA Videos Show How to Run Effective Credit Union Board Meetings

ALEXANDRIA, Va. – Are your credit union’s board meetings as effective as they could be? The National Credit Union Administration today released its new video series, “Effective Board Meetings,” aimed at helping credit union directors make the best use of their meetings.

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CUNA CompBlog: CFPB Proposes Amendments to the Regulation B Data Collection Requirements

On March 24th, the Consumer Financial Protection Bureau ("CFPB") issued a proposed rule to amend the monitoring information data collection requirements found in Sections 1002.5 and 1002.13 of Regulation B ("ECOA"). The primary purpose of the proposal is to better align the data collection requirements of ECOA with the previously amended data collection requirements of Regulation C ("HMDA").  

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NCUA Letter to Credit Unions: Risk-Focused Examinations and Compliance Risk

NCUA developed a Supervisory Letter to provide examiners with guidance about the updated list of compliance risk indicators that are part of NCUA’s Risk-Focused Examination (RFE) Program. The updated list of indicators does not impose any new or higher supervisory expectations for credit unions. The updates to the indicators will take effect on March 31, 2017.

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Deadline Approaching for Kmart Suit Claims, Objections, Opt-Outs

PORTLAND, Ore. – Credit unions have until April 18 to file a claim, request to opt-out or object to the settlement reached between plaintiffs and Kmart in a data breach lawsuit.

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CUNA CompBlog: Got Cybersecurity? It's a Supervisory Priority!

When NCUA issued its list of supervisory priorities for 2017, it wasn't a surprise that cybersecurity was on the list as it's been a key priority for the last few years. No doubt you're familiar with the FFIEC's tool that is used as self-assessment to gauge the level of cybersecurity risk and the processes and procedures your credit union has in place to mitigate those risks.  Does your incident response plan cover all the bases (IT, Legal, Marketing and Communications areas) so that your credit union can weather the ugliness of a breach when it happens?

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Reminder: CUSO Registry Reaffirmation Must Be Completed by March 31​

Credit union service organizations have until March 31 to complete their annual reaffirmation with the NCUA’s CUSO Registry. CUSOs can complete this required process online through the registry at https://cusoregistry.ncua.gov. There is no fee to use the CUSO Registry or to complete the reaffirmation process.

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CUNA Compblog: Floor Rates for Variable-Rate Open-End Loans

MADISON, Wis. – CUNA’s compliance staff went back to basics in a recent CompBlog entry examining floor rates on variable-rate open-end loans. These rates are governed by the Credit Card Accountability and Disclosure (CARD) Act.

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Comments on Remittance Assessment Due May 23

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) published its request for comment on its remittance rule in the Federal Register Friday, with comments due May 23. The bureau announced last week it will conduct an assessment on the rule, a rule CUNA has long believed harms consumers.

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Field-of-Membership Webinar and Questions and Answers Now Online

NCUA Plans to Issue Additional Guidance on New Rule in the Coming Months

ALEXANDRIA, Va. – Credit union stakeholders wanting more information about the National Credit Union Administration's new field-of-membership rule can now watch the agency’s Webinar online and review questions and answers from the event.

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Consumer Financial Protection Bureau Fines Experian $3 Million for Deceiving Consumers in Marketing Credit Scores

Credit Reporting Company Misstated How Credit Scores It Sold Were Used

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) took action against Experian and its subsidiaries for deceiving consumers about the use of credit scores it sold to consumers. Experian claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decisions. In fact, lenders did not use Experian’s scores to make those decisions. The CFPB ordered Experian to truthfully represent how its credit scores are used. Experian must also pay a civil penalty of $3 million. 

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Banking Agencies Issue Joint Report to Congress Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996

WASHINGTON – Continuing their efforts to reduce regulatory burdens while ensuring the safety and soundness of the nation’s financial institutions, member agencies of the Federal Financial Institutions Examination Council (FFIEC) issued a joint report to Congress detailing their review of rules affecting financial institutions.

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February 2017 NCUA Board Meeting Video Available

ALEXANDRIA, Va. – The video recording of the Feb. 23, 2017, open meeting of the National Credit Union Administration Board is now available on the agency’s Web site.

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CUNA Seeks CU Consideration in Assessment of Remittance Rule

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) announced Friday it is seeking comment on a bureau plan to assess its rule on international remittances. CUNA has long believed the rule, which took effect in October 2013, is overly broad, and feedback from member credit unions is that this rule has harmed consumers by forcing them out of this market.

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Treasury’s CDFI Fund in Danger of Being De-Funded

Last week the president’s budget FY2018 budget called for the funding of the Community Development Financial Institutions (CDFI) grant program to be cut altogether from the U.S. Department of the Treasury’s budget. Credit unions and other financial institutions can be certified CDFIs by the U.S. Treasury, if they meet certain requirements.

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