Compliance & Regulatory News

Quarterly Report Share Insurance Fund

The NCUA Board meeting also included the report on the Share Insurance Fund indicated total income of $81.2 million and net loss of $79.1 million for the quarter ending 6/30/2019. The balance sheet showed total liabilities and net position of $16.09 billion, a decrease of roughly $112 million from 3/31/2019. The Fund’s equity ratio stands at 1.33% as of the end of the last quarter. The number of CAMEL Code 4/5 credit unions increased slightly from the preceding quarter to 204; CAMEL Code 3 credit unions decreased to 872. So far in 2019 there has been one credit union failure.

NJCUL InfoSight Channel Update Board Responsibilities

A new topic, Property Casualty Insurance, has been added to the NJCUL InfoSight’s Board Responsibilities Channel.  Insurance provides indemnity against certain losses, protection against claims, and defenses in lawsuits.  Since a credit union is legally a corporation, a judgment for damages against a credit union for accidents involving bodily injury and/or property damages may be enforced by court order to seize any or all of the credit union's assets to satisfy the judgment.  Therefore, it is most important that every credit union have its own liability coverage.  Check out this topic today!

NJCUL’s NEW InfoSight is Here!

The NEW InfoSight is ready and waiting for New Jersey Credit Union League members to access.  The newly redesigned InfoSight!  was launched in August. The site is even more interactive than before with a host of hot topics and resources that are routinely updated.  The new site also includes quick and easy access to CU PolicyPro and ComplySight. The design is more modern, streamlined, and much easier to navigate. 

NCUA Board Rules on Updating Supervisory Committee Guide and Regulations

The NCUA Board held its September meeting today.  The meeting agenda included ruling on the agency’s Part 715, Supervisory Committee Audits and its regulations, with approval of the final rule 7535-01-U.  The Board final rule would replace the outdated Guide with a simplified appendix to the regulation.  The final rule would also update provisions of the regulation and provide added flexibility to federally insured credit unions with assets less than $500 million. 

CFPB 2019 Consumer Credit Card Market Report Available

Last month, the Consumer Financial Protection Bureau (CFPB) released its fourth biennial report on the state of the credit card market for the period 2017-2018.  In 2009, the Credit Card Accountability Responsibility and Disclosure Act (Act) made substantial changes to the legal requirements applicable to the credit card market, with Section 502 of the Act also requiring that a report be issued every two years with respect to the market.   

NJCUL’s NEW InfoSight is Here!

The NEW InfoSight is ready and waiting for New Jersey Credit Union League members to access.  The newly redesigned InfoSight!  was launched in August. The site is even more interactive than before with a host of hot topics and resources that are routinely updated.  The new site also includes quick and easy access to CU PolicyPro and ComplySight. The design is more modern, streamlined, and much easier to navigate. 

Federal Reserve Corrects Recent Changes to Reg. CC

On August 29, 2019, the Board of Governors of the Federal Reserve System issued a rule correcting dollar amount adjustment in the Board’s final rule published July 3, 2019, in the Federal Register. The July final rule amended Regulation CC, which implements the Expedited Funds Availability Act to adjust the dollar amounts under the EFA Act for inflation, incorporate provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act, and make other technical amendments.

Large Fraud Losses Involving Peer-to-Peer Payments Reported

CUNA Mutual Group’s latest Risk Alert stated that credit unions offering out-of-band authentication leveraging one-time-passcodes (OTPs) for online banking logins are being targeted by fraudsters. Their members are being scammed into providing fraudsters with their debit card details, online banking login credentials as well as OTPs transmitted for online banking logins.

Changes are Coming to NCUA’s ESM Platform

Changes to NCUA’s Enterprise Solution Modernization (ESM) platform were presented to the NCUA Board at its June 2019 meeting.  ESM supports continuous monitoring and virtual examinations in 2019. The agency awarded a contract to Deloitte, a consulting firm, to provide system development and technical support products and services for the Examination and Supervision Solution project. The project is aimed at modernizing technology and procedures to improve the examination process and ease burdens on credit unions and on agency staff by reducing the amount of examination and supervision time spent in credit unions.

ComplySight

2019 has been a big year for ComplySight! We’ve gotten great feedback from our users on the Custom Report Wizard. If you’re a current ComplySight client and have not had a chance to create your own custom report, login today and check it out!

FinCEN Expects Credit Unions to up Their Game to Combat Cyber Crimes

FinCEN is cautioning financial institutions to report all cyber-crime indicators, as described in the agency’s 2016 FAQs, and expect your examiners to ask about your efforts to combat this growing criminal trend.  To assist in this reporting, FinCEN updated the SAR form to have fields allowing you to report cyber-indicators ranging from source and destination information, file information, subject usernames, system modifications, and account information.  FinCEN receives about 80,000 cyber-related SAR filings per year.

NJCUL Held Cybersecurity Workshop

With cyberattacks increasing, credit unions need to show that they're properly safeguarding their members' information. Credit union membership is growing, with consumers looking to these nonprofit banking options for better interest rates, lower fees, and less overhead than traditional, large, for-profit banking institutions. But, despite their smaller size and tighter margins compared to banks, credit unions still face the same data and malware threats and require the same high level of security.

Leggett: Groups Call for Changes to QM Framework Ahead of GSE Patch Expiration

Wednesday, Keith Leggett wrote in his Credit Union Watch that a broad coalition of financial industry stakeholders, civil rights groups and other advocacy organizations wrote the Consumer Financial Protection Bureau (CFPB) on September 9 offering feedback on the expiration of the temporary “GSE patch,” which grants Qualified Mortgage (QM) status to loans eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac.

InfoSight Highlight: ANNUAL SURVEY Final Reminder!

A big THANK YOU to everyone who has already taken the survey! For those who haven’t, we would love your input! The thoughts and opinions you provide in our annual survey are used to guide our product development. We want to hear what you think are the critical elements for InfoSight and CU PolicyPro!

CUNA: Increased FCU Loan Limits Would Remove Barriers to Member Service

CUNA strongly supports legislation that would provide the NCUA board the flexibility to increase federal credit union loan maturity limits, it wrote to the House Financial Services Committee Tuesday. The committee conducted a hearing on student loan debt, and CUNA’s letter highlights the ways credit unions could support student borrowers if certain barriers were removed.

Six Steps to Prepare for a Credit Card Breach

Creditunions.com wrote an article about six steps credit unions can take to prepare for a credit card breach.  The author wrote about a nightmare scenario: An ex-Amazon employee is arrested for stealing credit card application data for 106 million people, plus 140,000 Social Security numbers and 80,000 bank account numbers — and then brags about it online. 

Your Opinion Matters: Annual InfoSight Survey Available!

It’s that time of year again!  InfoSight is moving into strategic planning and budget time!  Every year, InfoSight uses the feedback that you provide in the annual survey to determine next steps in product development.  The goal is to rebuild CU PolicyPro next year, but what should it contain?  What are the critical elements from the user’s perspective?

FinCEN Welcomes AnnaLou Tirol to Lead Its Liaison Division

The Financial Crimes Enforcement Network (FinCEN) welcomed AnnaLou Tirol today as its new Associate Director to lead its Liaison Division.  This division designs and implements strategic partnerships across the financial industry, with partners in the U.S. government, and with foreign counterparts.  It conducts operational information sharing among domestic and foreign partners, including in crisis situations, and conducts training and inspections to ensure effective use and protection of the sensitive Bank Secrecy Act data that FinCEN collects, protects, analyzes, and shares. 

CFPB Updates HMDA Webinars

Wednesday, the Consumer Financial Protection Bureau (CFPB) announced it updated its Home Mortgage Disclosure Act (HMDA) webinars. The CFPB updated its HMDA Webinars to reflect amendments to HMDA made by the Economic Growth, Regulatory Relief, and Consumer Protection Act, and the interpretive and procedural rule issued by the Bureau in August 2018. In addition, the Bureau issued a new HMDA Webinar that provides an overview of the data points not covered in the first two webinars.

It’s That Time of Year! Disaster Recovery and Business Continuity - Is Your Credit Union Ready?

It literally is that time of year! The disastrous effects of Hurricane Dorian unleashed weather never before seen on the Bahamas, sadly causing a number of deaths, as well as extreme structural damage that businesses and residents may take years to recover from.  As I write this, Dorian is still raging and making its way up the east coast of the United States, creating havoc as it travels.

Fidelity Bond Coverage

NCUA finalized changes to its fidelity bond rule back in July with the changes going into effect October 22, 2019.  The Federal Credit Union Act requires that certain credit union employees and elected officials have fidelity bond coverage.  Implementing requirements can be found in Parts 704 (federally insured natural person credit unions) and 713 (corporate credit unions) of NCUA’s Rules and Regulations.

FinCEN launches investigations division

FinCEN has announced the launch of its Global Investigations Division (GID), which will be responsible for implementing targeted investigation strategies rooted in FinCEN’s unique authorities under the Bank Secrecy Act (BSA) to combat illicit finance threats and related crimes, both domestically and internationally. GID will leverage FinCEN’s BSA authorities, including Section 311 of the USA PATRIOT Act, to investigate and target terrorist finance and money laundering threats, and GID will work more closely with foreign counterparts to coordinate actions against such threats when appropriate.

NJCUL: ANNUAL INFOSIGHT SURVEY Reminder!

It’s that time of year again!  InfoSight is moving into strategic planning and budget time!  Every year, InfoSight uses the feedback that you provide in the annual survey to determine next steps in product development.  The goal is to rebuild CU PolicyPro next year, but what should it contain?  What are the critical elements from the user’s perspective?

NJCUL Financial Education Webinar: Mitigating a Data Breach, Sept. 24

Register today to attend this important webinar on Mitigating a Data Breach: Forensics & Incident Response. As data breaches continue to make the headlines, financial institutions are challenged to maintain consumer confidence in their ability to recognize, react, and respond to intrusions to safeguard accountholder financial information and transactions. A core component of cybersecurity risk management is a well-designed incident response program that supports the institution's needs. This session will summarize the latest information about cybersecurity risks and breaches and explore regulatory guidance and current practices, so institutions can define and manage an incident response program. 

Your Opinion Matters: Annual InfoSight Survey Available!

It’s that time of year again!  InfoSight is moving into strategic planning and budget time!  Every year, InfoSight uses the feedback that you provide in the annual survey to determine next steps in product development.  The goal is to rebuild CU PolicyPro next year, but what should it contain?  What are the critical elements from the user’s perspective?

NCUA Board Meeting Sept. 19

NCUA's open Board meetings are broadcast live via livestream video. You may access the livestream beginning an hour before the scheduled start of the meeting by going to the agency's homepage and clicking the provided livestream link. Click here to access past meeting videos, agendas and results.

NJCUL FINANCIAL EDUCATION WEBINAR: MITIGATING A DATA BREACH, SEPT. 24

Register today to attend this important webinar on Mitigating a Data Breach: Forensics & Incident Response. As data breaches continue to make the headlines, financial institutions are challenged to maintain consumer confidence in their ability to recognize, react, and respond to intrusions to safeguard accountholder financial information and transactions. A core component of cybersecurity risk management is a well-designed incident response program that supports the institution's needs. This session will summarize the latest information about cybersecurity risks and breaches and explore regulatory guidance and current practices, so institutions can define and manage an incident response program. 

FFIEC Announces Availability of 2018 Data on Mortgage Lending

The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data on mortgage lending transactions at 5,683 U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks, savings associations, credit unions, and mortgage companies. Released today are loan-level HMDA data covering 2018 lending activity that were submitted on or before August 7, 2019.

Your Opinion Matters: ANNUAL INFOSIGHT SURVEY AVAILABLE!

It’s that time of year again!  InfoSight is moving into strategic planning and budget time!  Every year, InfoSight uses the feedback that you provide in the annual survey to determine next steps in product development.  The goal is to rebuild CU PolicyPro next year, but what should it contain?  What are the critical elements from the user’s perspective?

NJCUL BSA Staff and Volunteer Trainings

Staying current on the latest compliance information and regulatory changes is one of the best ways credit unions can stay in compliance. Compliance education and training set the foundation for a low-risk environment that will ensure your credit union's opportunity for sustainability.

CMG Risk Alert: Spike in Overdraft / NSF Fee Demand Letters

CUNA Mutual Group’s recent Risk Alert reports that the number of Overdraft / NSF Fee demand letters sent to credit unions has recently spiked, according to CUNA Mutual Group’s Third-Party Litigation team. The demand letters target alleged deceptive practices and excessive overdraft / NSF fees. According to CMG it’s imperative for credit unions to review member account agreements and disclosures to ensure the documents properly disclose how and when overdraft and NSF are assessed.

InfoSight Highlight: ANNUAL SURVEY

It’s that time of year again!  InfoSight is moving into strategic planning and budget time!  Every year, InfoSight uses the feedback that you provide in the annual survey to determine next steps in product development.  The goal is to rebuild CU PolicyPro next year, but what should it contain?  What are the critical elements from the user’s perspective?

CFPB Settles with Asset Recovery Associates

Yesterday, the Consumer Financial Protection Bureau (CFPB) announced a settlement with Asset Recovery Associates, Inc. (ARA), a debt-collection company headquartered in Illinois. ARA, also known as Financial Credit Service, Inc., collects debts from consumers throughout the United States.

FFIEC Encourages Standardized Approach to Assessing Cybersecurity Preparedness

The Federal Financial Institutions Examination Council (FFIEC) members today emphasized the benefits of using a standardized approach to assess and improve cybersecurity preparedness. The members note that firms adopting a standardized approach are better able to track their progress over time and share information and best practices with other financial institutions and with regulators.

NJCUL Financial Education Webinar: Mitigating a Data Breach, Sept. 24

Register today to attend this important webinar on Mitigating a Data Breach: Forensics & Incident Response. As data breaches continue to make the headlines, financial institutions are challenged to maintain consumer confidence in their ability to recognize, react, and respond to intrusions to safeguard accountholder financial information and transactions. A core component of cybersecurity risk management is a well-designed incident response program that supports the institution's needs. This session will summarize the latest information about cybersecurity risks and breaches and explore regulatory guidance and current practices, so institutions can define and manage an incident response program. 

CUs: Be on the Alert for the Red Flags of Elder Financial Abuse

Financial exploitation of the elderly is a serious problem that is hard to recognize but important to address. It can have a large financial impact, on average costing each victim thousands of dollars. Credit unions can play an invaluable role on the front lines of the fight against elder financial exploitation when employees are properly trained to know how to spot such crimes.

Welcome to the New NJCUL InfoSight!

The New Jersey Credit Union League is excited to announce the launch of our newly redesigned InfoSight!  Our goal with the new website is to create a more interactive and user-friendly experience for our member credit unions. The design is more modern, streamlined, and much easier to navigate.

Welcome to the new NJCUL InfoSight!

The New Jersey Credit Union League is excited to announce the launch of our newly redesigned InfoSight!  Our goal with the new website is to create a more interactive and user-friendly experience for our member credit unions. The design is more modern, streamlined, and much easier to navigate.

CMG Risk Alert Remittance Transfer Errors

According to CMG’s recent Risk Alert, some financial institutions failed to refund fees and, as allowed by law, taxes to consumer-senders when remittance transfers were made available to designated recipients later than the date of availability stated in the remittance transfer disclosure. According to the Consumer Financial Protection Bureau (CFPB), these institutions may be in violation of the error resolution procedures of the remittance transfer rule under Subpart B to Regulation E.

CFPB Payday Payment Provisions and Recording Requirements

August 19 was the compliance deadline for many of the requirements for credit unions seeking to provide loans under the Bureau of Consumer Financial Protection (CFPB)’s payday lending rule.  On June 6, 2019, the CFPB delayed the compliance date for the mandatory ability-to-repay (ATR) provisions to November 19, 2020, while the CFPB works to rescind this part of the rule. As for the other aspects of the rule, including the payment transfer restrictions and recordkeeping requirements, the mandatory compliance deadline would also have been today; however, the U.S. District Court for the Western District of Texas recently issued a stay of this compliance deadline, meaning it may not go into effect before the underlying lawsuit is resolved or the stay is lifted.

Checkout our InfoSight Highlight: Board of Director Liability

A credit union director (or officer) is referred to as a fiduciary by law. This means a director holds a position of trust. A director has an affirmative duty to care for the property of others and can be held liable for failing to perform that duty. Because the members of a credit union are too numerous to handle any but the most basic decisions for the credit union, the law provides for them to elect directors/fiduciaries to act on their behalf.

Welcome to the New NJCUL InfoSight!

The New Jersey Credit Union League is excited to announce the launch of our newly redesigned InfoSight!!  Our goal with the new website is to create a more interactive and user-friendly experience for our member credit unions. The design is more modern, streamlined, and much easier to navigate.

Cybersecurity Workshop Sept 10

Cyber Security Workshop Sell Sheet

Tuesday, September 10, 2019

Tuesday, September 10, 2019

10:00 am to 3:15 pm

NJCUL Education Center and via Zoom

 

 

With cyber attacks increasing, credit unions need to show that they're properly safeguarding their members' information.

Reminder: Delegate Registration Forms are Due Sept. 2

New Jersey Credit Union League (NJCUL) member credit unions have until Monday, September 2nd, close of business, to select their delegate representative. It is once again time to elect those who will represent credit unions from across the state as members of the NJCUL Board of Directors. Pursuant to the NJCUL Board of Directors Nomination and Election Rules we issued the call for nominations July 30, 2019.

CUNA: The BSA today What are Compliance Experts Saying?

Today, CUNA wrote how the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws can sometimes be a double-edged sword.  The Association’s article went on to say how on one hand, the laws intended purpose—to prevent serious crimes including fraud, money laundering and even human trafficking, is critical. On the other, with regulatory scrutiny falling even on credit unions unwittingly connected with these activities, it can sometimes feel like your organization might take the fall for something you couldn’t prevent.

N.H. Supreme Court Dismisses Defamation Lawsuit Brought by Patent Troll

Yesterday, Keith Leggett wrote in his Credit Union Watch that in a unanimous decision, the New Hampshire Supreme Court on August 16 upheld a lower court ruling that dismissed defamation claims brought by a patent assertion entity against the American Bankers Association (ABA), the Credit Union National Association (CUNA) and other defendants who labeled the company and its operator a “patent troll.”

Welcome to the New NJCUL InfoSight!

The New Jersey Credit Union League is excited to announce the launch of our newly redesigned InfoSight!  Our goal with the new website is to create a more interactive and user-friendly experience for our member credit unions. The design is more modern, streamlined, and much easier to navigate.

CFPB Appoints Private Education Loan Ombudsman

The Consumer Financial Protection Bureau (CFPB) announced the appointment of Robert G. Cameron to serve as the Bureau’s private education loan ombudsman. Mr. Cameron is a Colonel and Staff Judge Advocate for the Pennsylvania Army National Guard. He has served in the United States Army for 29 years. Mr. Cameron also joins the Bureau from the Pennsylvania Higher Education Assistance Agency where he was a high-ranking official responsible for litigation, compliance, and risk mitigation efforts.

CFPB: Equifax Settlement Steps You Can Take

Last month, the Consumer Financial Protection Bureau (CFPB), along with the Federal Trade Commission (FTC), and 48 states, the District of Columbia, and Puerto Rico announced a global settlement with Equifax over its 2017 data breach. The settlement provides a way to submit claims for services and for compensation to approximately 147 million people whose data were impacted.

CFPB: Equifax Settlement Steps You Can Take

Last month, the Consumer Financial Protection Bureau (CFPB), along with the Federal Trade Commission (FTC), and 48 states, the District of Columbia, and Puerto Rico announced a global settlement with Equifax over its 2017 data breach. The settlement provides a way to submit claims for services and for compensation to approximately 147 million people whose data were impacted.

If you are hearing from your members or employees that they have been impacted, learn more how they can find out if they are eligible and about the benefits they may be entitled to. 

Claims may be submitted online or by mail, and a telephone help system is available.

Benefits include compensation for money lost as a result of the breach, compensation for time and money spent working through issues as a result of the breach, free credit monitoring, free credit reports over a period of years, and identity restoration services.

Read more information and check whether you were impacted by the breach.

NJCUL’s League InfoSight: Business Continuity Planning

Has your compliance department planned for worst-case scenarios? With all of your daily responsibilities and trying to keep on top of current regulatory changes, planning for potential problems may be on the backburner. However, this year’s extensive flooding across the Midwest demonstrates the need to prioritize preparation for unfavorable situations.  Make sure you’re compliant with the Business Continuity Planning information! 

ComplySight Custom Reports are Here!

We have recently released a big enhancement which allows our clients to view the exact information they want to see! Custom reports can be saved, copied and shared with other staff members! Specific instructions will be communicated soon, but the ability to create custom reports is available now!

Bureau reopens comment period on HMDA rule amendments

The CFPB has published a notice [84 FR 37804] reopening the comment period for the proposed rule published May 13, 2019, at 84 FR 20972, but only with respect to the proposed changes relating to the permanent coverage thresholds for closed-end mortgage loans and open-end lines of credit in §§ 1003.2(g)(1)(v) and (g)(2)(ii) and 1003.3(c)(11) and (c)(12) and related commentary. Comments must be received by October 15, 2019.

Three Regulations CU Collectors Should Keep an Eye On

Creditunion.com wrote an article about three regulatory policies its collections team ought to know whether internal or outsourced. Credit union collections can oftentimes be a thankless task.  But if you outsource, no credit union wants to be at reputational risk if the member files a complaint because of a lack of training of the outsourced collections personnel, you could ultimately be held liable.

CMG Risk Alert Increased Off-Premise ATMs Currency Storage Attracts Criminals

ATMs now provide more cash-holding cassettes which increases the currency capacity. While this makes it easier for your credit union to ensure off-premise ATMs are operational with cash-on-hand, it also increases your risk exposure at those ATMs. To minimize risk, off-premise ATMs must not exceed $200,000 in cash storage and must be alarmed in a specific way.

FinCEN Issues Statement on Risk-focused BSA/AML Supervision

Federal financial regulators, along with the Treasury’s Financial Crimes Enforcement Network (FinCEN), have issued a statement on risk-focused Bank Secrecy Act/Anti-Money Laundering (BSA/AML) supervision. The statement does not include any new requirements but is intended to improve transparency into the risk-focused approach used for planning and performing BSA/AML examinations.

NCUA Risk Alert: Business Email Compromise Fraud

Monday, the NCUA issued an alert that describes the increasing frequency of, and losses related to, business email compromise fraud schemes. Credit unions can take steps to prevent this type of fraud and should report such fraud, when it occurs, to the FBI’s Internet Crime Complaint Center. Credit unions that report incidents to the Internet Crime Complaint Center promptly increase their opportunity to recover funds that have been wired under fraudulent pretenses.

CFPB: New Proposed Rule Posted QMD

Friday, a new proposed regulation has been posted by the Consumer Financial Protection Bureau (CFPB) on the Qualified Mortgage Definition. With certain exceptions, Regulation Z requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any residential mortgage loan, and loans that meet Regulation Z’s requirements for ‘‘qualified mortgages’’ obtain certain protections from liability.

CFPB: New Proposed Rule Posted QMD

Friday, a new proposed regulation has been posted by the Consumer Financial Protection Bureau (CFPB) on the Qualified Mortgage Definition. With certain exceptions, Regulation Z requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any residential mortgage loan, and loans that meet Regulation Z’s requirements for ‘‘qualified mortgages’’ obtain certain protections from liability.

More Proposed Rulemaking News from CFPB

Wednesday, the CFPB issued an advance notice of proposed rulemaking for Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z).  With certain exceptions, Regulation Z requires creditors to make a reasonable, good faith determination of a consumer's ability to repay any residential mortgage loan, and loans that meet Regulation Z's requirements for “qualified mortgages” obtain certain protections from liability. One category of qualified mortgages (QMs) is loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).

Account Opening for Nonprofit Organizations & Corporations

If your credit union is asked to open a variety of deposit accounts, there are specific documentation requirements for accounts established for donations, memorials, and various nonprofit organizations. What questions should be asked at account opening? What CIP documentation is required for BSA compliance? Are you complying with the beneficial ownership rules that became effective May 11, 2018? Corporations are "legal entity customers" and are covered by the rules.

CFBP Reopens Comment Period Letters Due Oct. 15

Wednesday, the Consumer Financial Protection Bureau (Bureau) announced that it is reopening the comment period for certain aspects of the May 2019 Notice of Proposed Rulemaking relating to Regulation C, which implements the Home Mortgage Disclosure Act. The Bureau’s proposal calls for increasing HMDA reporting thresholds for closed-end mortgages to 50 or 100 loans (up from the current 25) and extending the current temporary thresholds of 500 open-end lines of credit until Jan. 1, 2022.

Department of Labor Form Should Exclude CU Data

CUNA recommends the Department of Labor (DOL) issue a final rule on financial reporting for labor organizations that exempts the reporting of information on labor-affiliated credit unions, it wrote Monday. CUNA’s letter is in response to a DOL proposal to amend a form submitted by labor organizations to file trust annual financial reports, as the proposal lists “credit unions” in the scope of labor organizations’ trusts.

Equifax Data Breach Settlement: How to Claim Your Benefits?

The Federal Trade Commission (FTC) has information that will help credit unions and their members file a claim to collect benefits under a settlement that the FTC and others reached with Equifax. It is estimated that roughly half the country is eligible to make a claim against the settlement.  Now, you can now find out if you were affected by the September 2017 breach and make your claim for benefits.

CMG: Negligent Entrustment: A Hidden Credit Union Business Risk

CUNA Mutual Group (CMG) found that negligent entrustment occurs when your credit union is found responsible for negligently providing another party (your employee) with a dangerous instrument and the entrusted party then causes property damage, injury, or death to a third party with that instrument. In recent years, this risk has increased significantly mainly due to distracted driving claims. The lawsuits can cost millions of dollars and cause reputational damages.

MLA: A Look Back to Look Forward

The Military Lending Act’s (MLA) Compliance was required by October 3, 2016 for all open-end and closed-end loans not exempt from the final rule, except for credit card accounts which had a compliance date of October 3, 2017.

So what loans are covered by the MLA rule?

The MLA rule initially applied only to Payday Loans, Vehicle Title Loans and Tax Refund Anticipation Loans.

The Amended MLA Final Rule applies to consumer credit –which is credit offered or extended to a covered borrower primarily for personal, family. Or household purposes, and that is: subject to a finance charge; or is payable by a written agreement in more than four installments.

Final Rule Fidelity Bonds [Parts 704, 713]

The Board adopted a final rule on fidelity bonds under Part 704 for corporate credit unions and Part 713 for natural person credit unions. Specifically, the final rule:

  • Strengthens a board of directors’ oversight of a FICU’s fidelity bond coverage;
  • Ensures an adequate period to discover and file fidelity bond claims following a FICU’s liquidation;
  • Codifies a 2017 legal opinion that permits a natural person credit union’s fidelity bond to include coverage for certain CUSOs; and
  • Addresses Board approval of bond forms.
Joint Statement on BSA/AML Supervision Issued

As a result of a working group established by the U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence, the federal bank regulatory agencies and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently issued a joint statement as part of continuing efforts to improve transparency into their risk-focused approach to Bank Secrecy Act (BSA)/anti-money laundering (AML) supervision. The risk-focused approach enables federal agencies to better tailor examination plans and procedures based on the unique risk profile of each financial institution.

NCUA Proposed Rule: Allow FCUs to Leverage Nonmember Funding

The National Credit Union Administration (NCUA) has proposed a rule that will allow a federal credit union (FCU) to leverage funding sources other than member shares. These rules apply to federally insured state credit unions (FISCUs) by reference in §741.204. Currently, §701.32(b) of NCUA’s rules limits a FCU’s total public unit and non-member shares to the greater of 20% of total share or $3 million. An NCUA Regional Director may approve a waiver request to exceed the limits.

CMG: CUs Emerging Risks

Join CUNA Mutual Group’s Risk & Compliance Consultants to engage in a live, 90-minute, question and answer forum, Wednesday, August 14, 2:00 pm, EDT. Throughout this session, CMG will address questions that many of you have submitted in advance.

What the FTC Facebook Settlement Means for Consumers…And CUs

Credit unions that use Facebook as an additional tool in their communication toolbox to reach a broader swath of their membership and surrounding communities, might want to proceed with caution.  In the past, the National Credit Union Administration and other federal regulators have not provided close oversight to social media platforms, such as Facebook.  However, the next time users visit Facebook, things might not look different, but big changes are brewing behind the scenes.

Your Member has Passed Away and the Government Wants Their Money Back?!

Credit union personnel often first find out that a member has passed away when a close relative or the executor of the decedent’s estate is sitting at their member service representative’s desk.  It’s often an emotional, and at times, even a tearful encounter, for the relative and often for the credit union representative.  In the credit union world we often grow close to our members, so times like this it is often difficult for credit union staff to deal with both the emotional as well as the practical financial tasks that need to be accomplished.  One issue in particular, at the best of times, can be very confusing.  It is when a credit union member dies and you discover your member was receiving Federal government benefits into their credit union account through the Automated Clearing House (ACH).

CFPB Issues New Advisory for Reporting Elderly Exploitation

The Consumer Financial Protection Bureau (Bureau) issued an updated advisory this week to financial institutions urging them to report to the appropriate local, state and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation. The Bureau also recommended that financial institutions file Suspicious Activity Reports (SARs) with the federal government when they suspect elder financial exploitation (EFE).

FASB Moves Toward Delay of CECL Effective Date

Wednesday, the Financial Accounting Standards Board (FASB) discussed the issue of effective dates of several different standards as they apply to each type of reporting entity. All Board members agreed to add a project to FASB’s technical agenda to amend the effective dates for CECL, leases, and hedging. While the proposed changes will be subject to a 30-day comment period (once the official language is released), as it applies to credit unions, the plan would:

FinCEN Advisory on FATF List

The Financial Crimes Enforcement Network (FinCEN) has issued an advisory [FIN-2019-A004] to financial institutions regarding the Financial Action Task Force’s (FATF) updated list of jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies and relevant actions by the U.S. Government. These changes may affect U.S. financial institutions’ obligations and risk-based approaches regarding relevant jurisdictions. The advisory also reminds financial institutions of the status and obligations involving these jurisdictions.

NJCUL Hosts Annual Compliance Conference

The New Jersey Credit Union League hosted it’s 9th Annual Compliance Conference in Hightstown, NJ.  The conference was well attended with over forty credit union leaders, compliance stakeholders, speakers, and NJCUL staff.  Also, joining the conference were several Pennsylvania credit unions and Pennsylvania Credit Union Association staff.

Cybersecurity: NCUA ACET Creep

Credit unions—don’t let NCUA’s automated cybersecurity examination creep up on you! January of this year, the Credit Union Times (CUT) reported that the NCUA board met and set a goal for the agency to finish cybersecurity reviews with the agency’s relatively new exam tool (ACET) by the end of the year at all federally insured credit unions with assets greater than $1 billion.  The board adopted its annual performance report in the same meeting.  The report sets agency goals and benchmarks for the coming year. 

CFPB’s Regulatory Flexibility Act - CUNA files Comment Letter, Jul 15

CUNA filed a comment letter today with the CFPB in response to its plan to review regulations pursuant to the Regulatory Flexibility Act (RFA).  In May, the Consumer Financial Protection Bureau (CFPB) published a notice on how it plans to periodically review regulations under the Regulatory Flexibility Act (RFA) and to request public input. Additionally, the Bureau published a notice requesting public input as part of its first RFA review examining the 2009 Overdraft Rule. 

Not too Late to Submit Your Comment Letters

The National Credit Union Administration (NCUA) has two proposals pending in July.  It’s not too late to submit your comment letters.  It is important that your voice is heard on new and proposed regulatory changes that affect credit unions and their members.

ComplySight Exciting Changes on the Way!

ComplySight has a big enhancement coming your way! The New Jersey Credit Union League partners with CU Solutions Group and League InfoSight to bring you ComplySight, a compliance solution that makes it possible to track, measure, and report compliance activities in a single application, assisting in the organization’s overall communication, supporting a state of continual readiness for audits, and providing regulatory updates essential to maintaining credit union compliance.

IRS to Allow SSN Truncation on W-2 Forms

The IRS has issued final regulations [84 FR 31717] amending applicable sections of the Internal Revenue Code to permit employers to voluntarily truncate employees' social security numbers (SSNs) on copies of Forms W-2, Wage and Tax Statement, that are furnished to employees so that the truncated SSNs appear in the form of IRS truncated taxpayer identification numbers (TTINs). The amendments are effective upon publication, but will apply to returns, statements, and other documents required to be filed or furnished after December 31, 2020.

CMG Risk Alert: California Consumer Privacy Act Deadline Less Than Six Months Away

CUNA Mutual Group published a Risk Alert Wednesday on the California Consumer Privacy Act (CCPA), effective January 1, 2020.  The CCPA provides broader rights to consumers and stricter compliance requirements for businesses, including credit unions, than any other current state or federal privacy law. You need to understand your compliance and operational obligations under the current state of CCPA, as well as monitor similar and evolving federal and state privacy proposals.

CFPB Settles Lawsuit Against Freedom Debt Relief

Tuesday, the Consumer Financial Protection Bureau (Bureau) settled its lawsuit against Freedom Debt Relief, LLC, the nation’s largest debt-settlement services provider. The company agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty.

CFPB and FRB Issue Amendments to Regulation CC

On July 3, 2019, the Consumer Financial Protection Bureau and the Board of Governors of the Federal Reserve System issued a final rule  amending parts of Regulation CC, which implements the Expedited Funds Availability Act.1 The final rule makes changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act and the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA).

Former CU VP Pleads Guilty to $3 Million Theft

 

The Credit Union Times (CUT) reported that a former credit union executive Josephine M. Crowe pleaded guilty Tuesday in a Kentucky federal court for stealing more than $3 million from the Louisville Metro Police Officer’s Credit Union that led to its liquidation last year.

Reminder: CDRLF Grant Round Closes, Jul. 20

Low-income credit unions have until July 20 to submit their applications for Community Development Revolving Loan Fund grants. The NCUA will administer approximately $2 million in CDRLF grants to the most qualified applicants, subject to the availability of funds, in four categories: underserved outreach; digital services and security; counselor certification; and training helping credit unions develop staff talents and skills.

Website allows filing of claims by those affected by Wendy’s data breach

Financial institutions affected by the data breach at Wendy’s restaurants can now file their claims and find additional information at a website established as part of the settlement of that case, wendysfidatabreachsettlement.com. It contains a mechanism for filing claims, as well as additional information, frequently asked questions, a list of important deadlines and court documents.

FRB, CFPB Issues Reg CC Final Rule, Jun. 24

On June 24, 2019, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau jointly issued a final rule amending Regulation CC, which implements the Expedited Funds Availability Act (EFA Act), to implement a statutory requirement in the EFA Act to adjust the dollar amounts under the EFA Act for inflation.

MLA website changes scheduled this week

On June 21, 2019, the Defense Manpower Data Center (DMDC) announced that on June 27, 2019, it would make significant changes to the Military Lending Act (MLA) website to enhance security of the site and better protect the personal information of servicemembers. All users of the site will be required to create user accounts, which will be required to access both the Single Record Request and the Multiple Record Request capabilities of the site.

IRS warning - 2 million ITINs to expire

The IRS has posted a warning that nearly two million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire December 31, 2019.

CFPB Compliance and Guidance Resources Updated

The Consumer Financial Protection Bureau recently updated the small entity compliance guide that summarizes the payment-related provisions of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (Payday Lending Rule). The updated guide is available on the Bureau’s website.

Don’t Miss Out! CDRLF Grant Round Closes July 20

Low-income credit unions have until July 20 to submit their applications for Community Development Revolving Loan Fund (CDRLF) grants. The NCUA will administer approximately $2 million in CDRLF grants to the most qualified applicants, subject to the availability of funds, in four categories: underserved outreach; digital services and security; counselor certification; and training helping credit unions develop staff talents and skills.

CFPB Extends Comment Period for ANPR on HMDA Data Points

The Consumer Financial Protection Bureau (Bureau) announced Thursday that it is extending the comment period on its Advance Notice of Proposed Rulemaking (ANPR) relating to the Home Mortgage Disclosure Act (HMDA). The extension will give interested parties an opportunity to review the Bureau’s annual overview of residential mortgage lending based on the HMDA data financial institutions collected in 2018, as requested by a variety of stakeholders. In late summer, the Federal Financial Institutions Examination Council will release the national loan level dataset and the Bureau will release an overview of that dataset. The ANPR, issued on May 2, 2019, solicits comment on certain data points in the Bureau’s October 2015 final rule that were added to Regulation C or revised to require additional information, and on coverage of certain business- or commercial-purpose loans.

CFPB Delays Compliance Date for Underwriting Requirements of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule

The Consumer Financial Protection Bureau announced a final rule delaying the compliance date for the underwriting provisions of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (Payday Lending Rule). The final rule delays the effective date of those provisions from August 19, 2019, until November 19, 2020.

Agencies Issue Final Amendments to Regulation CC Regarding Funds Availability

WASHINGTON, DC — The Consumer Financial Protection Bureau and the Federal Reserve Board jointly published amendments to Regulation CC that implement a statutory requirement to adjust for inflation the amount of funds depository institutions must make available to their customers. The amendments apply in circumstances ranging from next business day withdrawal of certain check deposits to setting the threshold amount for determining whether an account has been repeatedly withdrawn.

OFAC Adjusts Penalties for Inflation

OFAC has published an amendment [84 FR 27714] to its regulations to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended . This regulatory amendment, which is effective on publication, adjusts for inflation the maximum amount of the civil monetary penalties that may be assessed under relevant OFAC regulations.

HRA Coverage Expanded

The Departments of Health and Human Services, Labor, and the Treasury have announced regulatory amendments to be published June 20 that will expand the use of health reimbursement arrangements (HRAs). When employers have fully adjusted to the revised rules, it is estimated these changes will benefit approximately 800,000 employers, including small businesses, and more than 11 million employees and family members, including an estimated 800,000 Americans who were previously uninsured. FAQs regarding the changes were also released.

Comments on NCUA’s Proposed Compensation in Connection with Loans to Members and Lines of Credit to Members Due Jun 24

Comments on the NCUA’s proposed rule on compensation connected with loans and lines of credit to members are due by the close of business on June 24. The NCUA Board issued an advance notice of proposed rulemaking (ANPR) to solicit comments on ways to improve the agency’s regulations limiting a credit union official’s and employee’s compensation in connection with loans and lines of credit to members. (An ANPR helps inform the agency before they begin drafting a proposed rule.)

CFPB Symposium June 25 will Discuss Abusive Acts or Practices, Livestream Available

The Consumer Financial Protection Bureau (CFPB) will host the first of its recently announced symposia series on June 25, 2019 at 9 am, EST, at the Bureau's headquarters, 1700 G St. NW Washington, DC. Featuring remarks from CFPB Director Kathleen Kraninger and Deputy Director Brian Johnson as well as testimony from legal and policy experts on the topic of the abusiveness standard in consumer financial products and services.

NCUA Chair Hood Responds to Schumer Allegations on Taxi Lending, Oversight

A June 12th Credit Union Times article reports that the NCUA Chairman Rodney Hood responded to allegations made by Senate Minority Leader Charles Schumer (D-N.Y.) in a May 21, 2019 letter. The CUTimes article referenced a letter that Hood sent Schumer, in which Hood placed the blame for the plunge in value of taxi medallions that backed the loans squarely on “ridesharing services, a technological disruption whose impact was as severe as it was uncontrolled”.  Hood was also quoted as saying that an “asset bubble,” not lackluster oversight by the NCUA, led to the crisis facing New York City taxi drivers and the now-closed credit unions that loaned them money. 

Highlights of CFPB Director Kraninger’s First Six Months

June 11th marked the first six months of Director Kathleen L. Kraninger leading the Consumer Financial Protection Bureau (Bureau). “It is an honor and privilege to serve American consumers. As Director, my focus is to prevent harm to consumers by using all the tools Congress gave us, including education, regulation, supervision and enforcement. I look forward to building on the efforts and progress of these first six months,” said Director Kraninger.

June is National Safety Month Week 2 Highlights OSHA Violations…Slips, Trips and Falls

Week 2 of the National Safety Council’s (NSC) annual National Safety Month highlights slips, trips, and falls, and with good reason. Credit unions and other businesses should be aware that violations of the Occupational Safety and Health Administration’s (OSHA) general requirements for fall protection continually top the list of most frequently cited standards, and falls remain one of the most common causes of serious work-related injuries and deaths in both general industry and construction. In 2017 alone, there were more than 8 million preventable fall injuries. Though most people assume that falls are primarily a concern for those working at elevated heights, there are plenty of slip, trip, and fall hazards in every work setting.

CFPB to Hold First Symposium on June 25

WASHINGTON, DC – The Consumer Financial Protection Bureau announced that its first symposium will be held on June 25 at 9 a.m. The symposium, part of a series announced earlier this year, will focus on the Dodd-Frank Act’s prohibition on abusive acts or practices. The symposium will be Webcast on the Bureau’s Web site.

Review of RESPA’s Anti-Kickback Provision

Section 8 of the Real Estate Settlement Procedures Act (RESPA) prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement services in connection with any loan covered by RESPA. The Act also prohibits fee splitting and receiving unearned fees for services not actually performed. These restrictions apply in any situation where settlement services are related to a federally related loan. The rendering of services by a mortgage broker is a “settlement service” for purposes of the rule. 

CFPB Issues Final Rule on Payday Lending

The Consumer Financial Protection Bureau (Bureau) has issued a final rule delaying the August 19, 2019 compliance date for the mandatory underwriting provisions of the 2017 Payday Lending Rule to November 19, 2020. The Bureau issued this final rule to create consumer protections for certain consumer credit products. 

CFPB Announces New Mortgage Closing Scams Prevention Resources

The FBI has reported that scammers are increasingly taking advantage of homebuyers during the closing process. Through a sophisticated phishing scam, they attempt to divert your closing costs and down payment into a fraudulent account by confirming or suggesting last-minute changes to your wiring instructions. In fact, reports of these attempts have risen 1,100 percent between 2015 and 2017, and in 2017 alone, there was an estimated loss of nearly $1 billion in real estate transaction costs. 

NCUA: Public Unit and Nonmember Shares; Comments Due Jul. 29

The National Credit Union Administration (NCUA) Board issued a proposal May 31, 2019 that would amend the NCUA’s Public Unit and Nonmember Shares rule to allow federally insured credit unions to receive public unit and nonmember shares up to 50 percent of the credit union’s paid-in and unimpaired capital and surplus less any exiting public unit and nonmember shares. The agency is calling for the public to comment. Comment letters are due July 29, 2019.

Chartering, FOM, Bylaws Highlight NCUA’s Annual Regulatory Review

NCUA should only promulgate new or expand existing rules only if they are warranted based on “a compelling need,” CUNA wrote to NCUA Thursday. NCUA conducts an annual review each year of one-third of the agency’s regulations in an effort to determine those that need to be updated, clarified, simplified or eliminated, and CUNA sent its comments on this year’s review.

Comments on HMDA Reporting Thresholds Due to CFPB By June 12

The Consumer Financial Protection Bureau (CFPB) is proposing two alternatives to amend Regulation C to increase the threshold for reporting data about closed-end mortgage loans. The proposed rule would permanently raise the closed-end institutional and transactional coverage threshold from 25 to either 50 or 100 closed-end mortgage loans in each of the preceding two calendar years. The increased threshold would be effective January 1, 2020.

CFPB Publishes TILA-RESPA Integrated Disclosure FAQs

Last week, the Consumer Financial Protection Bureau (CFPB) published the first set of Frequently Asked Questions on the TILA/RESPA Integrated Disclosure (TRID) Rule as it applies to construction loans. The questions and answers in the CFPB’s TRID FAQs pertain to compliance with the TRID or TRID Rule. Reviewing these questions and answers is not a substitute for reviewing TILA, RESPA, Regulation Z, or its official interpretations (also known as the commentary). The statutes, Regulation Z, and its official interpretations are the definitive sources of information regarding the requirements.

FCC Must Revise Call-Blocking Proposal to Protect Legal Calls

The Federal Communications Commission’s (FCC) proposed blocking-by-default framework will inevitably lead to the blocking and mislabeling of calls, depriving credit union members of important information, CUNA wrote to the FCC Thursday. CUNA sent its comments in response to a proposal from the FCC that would block certain calls to consumers by default, requiring them to specifically opt in to receive certain calls.

FTC Rescinding Several FCRA Model Forms

The Federal Trade Commission (FTC) has published at 84 FR 23471 in a recent Federal Register a final rule rescinding several Model Forms and Disclosures issued under the Fair Credit Reporting Act (“FCRA”) that it has determined are no longer necessary. Given the CFPB's 2018 updates to its model forms and disclosures, the Commission determined that rescinding several of its model forms and disclosures would reduce confusion. The Commission also made conforming amendments to address references to the updated model forms and disclosures in related rules.

FTC: Hurricane Season Begins June 1; Is Your CU’s Disaster Plan Ready?

Weather has played a part in a credit union’s business continuity and disaster planning for decades, but with ever increasing changes in climates areas of the country are seeing increasingly disaster weather they have not seen before. It is prudent to revisit your plan each year to ensure your credit union is ready to react as needed. The Federal Trade Commission (FTC) wants to help.The FTC has free information to help people prepare for, deal with, and recover from extreme weather events like hurricanes, tornadoes, and other natural disasters.

FinCEN Announces Its Innovation Hours Program

The Financial Crimes Enforcement Network (FinCEN) announced the FinCEN Innovation Hours Program to better shape and inform its ongoing engagement with Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT) innovators. The Innovation Hours Program will provide financial technology (FinTech) and regulatory technology (RegTech) companies and financial institutions the opportunity to present their new and emerging innovative products and services to FinCEN. Technology demonstrations should highlight how these innovations work and how financial institutions might use them. FinCEN expects to hold events in the Washington D.C. metro area, as well as some regional events that focus on financial services-related innovation.

NCUA Alert - Flood Insurance Alternatives

The National Credit Union Administration (NCUA) issued Regulatory Alert (19-RA-01) - Flood Insurance Alternatives that becomes effective July 1, 2019. Starting July 1,  credit unions must accept private flood insurance policies for applicable loans.  The policies must meet the definition of private flood insurance as included under the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act) and incorporated into Part 760 of the NCUA’s regulations. In addition, credit unions may accept private flood insurance policies that do not meet the definition of private flood insurance as explained in this letter, as well as NCUA-approved private flood insurance plans provided by mutual aid societies.

NCUA to Try to ‘Streamline’ Chartering Process

Attempting to simplify a chartering process that one NCUA board member called “amazingly sluggish,” the NCUA will begin offering a more detailed roadmap for people interested in starting a credit union, Martha Ninichuk, director of the Office of Credit Union Resources and Expansion told the agency board Thursday.

NCUA Board Meeting Held

The National Credit Union Administration (NCUA) Board held its fifth open meeting of 2019 at the agency’s headquarters and unanimously approved one item: A proposed rule allowing a federal credit union to accept nonmember and public unit shares up to 50 percent of its unimpaired capital and surplus.

CFPB Director Kraninger Announces Deputy Director

WASHINGTON — Consumer Financial Protection Bureau (CFPB) Director Kathleen L. Kraninger announced that Brian Johnson will serve as the Deputy Director. Mr. Johnson first joined the Bureau in December 2017 as Senior Advisor to the Director and was named Principal Policy Director in April 2018. Mr. Johnson has served as Acting Deputy Director since July 2018.

Consumer Financial Protection Bureau Outlines Plan to Review Rules Under the Regulatory Flexibility Act

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) published a notice on how it plans to periodically review regulations under the Regulatory Flexibility Act (RFA) and to request public input. Additionally, the Bureau published a notice requesting public input as part of its first RFA review examining the 2009 Overdraft Rule.

Treasury tech notice for users of OFAC site

The United States Department of the Treasury has posted an important Technical Notice for users of the OFAC Web site and sanctions lists data files. The existing certificate (expiring June 6, 2019) will be replaced on May 16, 2019 at 9 p.m. Please call this notice to the attention of your IT staff or your vendor if they download OFAC's sanctions list information.

Consumer Financial Protection Bureau Proposes Regulations to Implement the Fair Debt Collection Practices Act

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rule-making (NPRM) to implement the Fair Debt Collection Practices Act (FDCPA). The proposal would provide consumers with clear protections against harassment by debt collectors and straightforward options to address or dispute debts. Among other things, the NPRM would set clear, bright-line limits on the number of calls debt collectors may place to reach consumers on a weekly basis; clarify how collectors may communicate lawfully using newer technologies, such as voicemails, emails and text messages, that have developed since the FDCPA’s passage in 1977; and require collectors to provide additional information to consumers to help them identify debts and respond to collection attempts.

New Jersey Credit Union League Expands Compliance Solutions Offerings Through Partnership with AffirmX

HIGHTSTOWN, N.J. – The New Jersey Credit Union League (NJCUL) is proud to offer our credit unions a full suite of compliance solutions designed to help your credit union reduce workloads, anxieties, and costs associated with compliance. Through a new partnership with AffirmX, the League is expanding its offerings of affordable, top-notch audits and assessments to our credit union members.

CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES CHANGES TO HMDA RULES

The Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rule-making (NPRM), which proposes to raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the Home Mortgage Disclosure Act (HMDA) rules. The NPRM would provide relief to smaller lenders from HMDA’s data reporting requirements, and would clarify partial exemptions from certain HMDA requirements that Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The Bureau also issued an Advance Notice of Proposed Rule-making (ANPR) seeking information on the costs and benefits of reporting certain data points under HMDA.

Elder Financial Exploitation is on the Rise

Scams and fraud aimed at the elderly are increasing as the methods of tricking the elderly are getting more sophisticated. In many cases, the credit union staff will recognize transactions or words used in conversation with an elderly member that may be an indication that something is wrong. 

NCUA Board Seeks Comments on Loan Compensation

The National Credit Union Administration (NCUA) Board approved one item at its April 2019 meeting: an advance notice of proposed rule-making (ANPR) on possible changes to the agency’s regulation governing compensation in connection with loans and lines of credit to members  -- Part 701.21(c)(8). The regulation covers direct or indirect commissions, fees, or other compensation by credit union officials, employees, or their family members in connection with loans made by the credit union.

NCUA’s Supervisory Committee Audit Proposal Would Ease Compliance

CUNA wrote in support of NCUA’s proposed rule on supervisory committee audits, believing the proposed changes would make compliance with the requirements less burdensome. The proposal would amend NCUA’s regulations governing the responsibilities of a federally-insured credit union to obtain an annual supervisory committee audit of the credit union.

New NCUA Chairman Hood outlines areas of focus, ANPR issued

The National Credit Union Administration (NCUA) Board issued an advance notice of proposed rule-making (ANPR) Thursday on compensation in connection with loans to members. This was also the first meeting of a full, three-person board since April 2016. Rodney Hood was named chair by President Donald Trump earlier this month, and Todd Harper was sworn in as a board member earlier this month as well.

CDRLF Grant Round Opens June 2

NCUA Will Award $2 Million for Underserved Outreach, Digital Services, Counselor Certification, and Training

ALEXANDRIA, Va. – Low-income credit unions interested in Community Development Revolving Loan Fund grants can submit applications between June 2 and July 20.

Consumer Financial Protection Bureau Announces Symposium Series

WASHINGTON — Consumer Financial Protection Bureau (CFPB) Director Kathleen L. Kraninger announced a symposia series exploring consumer protections in today’s dynamic financial services marketplace. The series is aimed at stimulating a proactive and transparent dialogue to assist the Bureau in its policy development process, including possible future rule-makings. During each symposium, the Bureau will host a discussion panel of experts with a variety of viewpoints on the topic.

Check out League InfoSight for the Latest FACT Act Checklist

The Fair and Accurate Credit Transactions Act (FACT Act) amends the Fair Credit Reporting Act in several important ways. NJCUL members may click here to access League InfoSight and a wealth of compliance information, in addition to the latest FACT Act Checklist. The FACT Act gives consumers the right to one free credit report every year from the credit reporting agencies, added new identity theft protections that allow consumers to place fraud alerts on their credit reports, and requirement of provisions to provide risk based pricing notices and credit scores to consumers in connection with denials or less favorable offers of credit. 

NCUA Board Meeting to be Held April 18

The National Credit Union Administration (NCUA)'s open Board meetings are broadcast live via livestream video. You may access the livestream beginning an hour before the scheduled start of the meeting by going to the agency's homepage and clicking the provided livestream link.

CFPB Releases its Supervisory Highlights Report: Winter 2019

In this 10th issue of Supervisory Highlights, the Consumer Financial Protection Bureau (CFPB) shares findings from recent examinations in the areas of student loan servicing, remittances, mortgage origination, debt collection, and consumer reporting. This issue also shares important updates to past fair lending settlements reached by the Bureau.

CECL FAQs Released by Interagencies

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) released an updated FAQ document on CECL (current expected credit losses) methodology. This document contains already issued FAQs from 2016 and 2017, as well as those updated and newly added in this April 2019 release. 

New Content Added to NJCUL’s League InfoSight: Prepaid Accounts

A new topic has been added in League InfoSight’s Account Channel - Prepaid Accounts. Effective on April 1, 2019, Regulation E and Regulation Z were both expanded to provide coverage and certain consumer protections to prepaid accounts, which include payroll card accounts, government benefit accounts, and certain other types of prepaid products. This new topic covers the expanded rules. Click here to access the Channel.

HMDA Modified Loan Application Registers Released

WASHINGTON — The Home Mortgage Disclosure Act (HMDA) Modified Loan Application Registers (LARs) data were recently published for approximately 5,400 financial institutions by the Consumer Financial Protection Bureau (CFPB). This is the first year in which additional data reported by certain institutions under the 2015 HMDA rule will be available. The Modified LARs contains loan level information for 2018 on individual HMDA filers, modified to protect privacy. For guidance as to how submitted data is modified to protect privacy, please click here.

FFIEC Issues Guide for 2019 HMDA Data Collection

ALEXANDRIA, Va. – On March 25, 2019, the Federal Financial Institutions Examination Council (FFIEC) released the 2019 edition of A Guide to HMDA Reporting: Getting it Right!, which provides detailed instructions and information for credit unions required to collect Home Mortgage Disclosure Act data in 2019 for reporting in 2020.

CFPB Alters CUAC Charter, Extends Terms, Opens Applications

The Consumer Financial Protection Bureau (CFPB) announced Thursday amendments to its advisory committee charters, which include the Credit Union Advisory Council (CUAC). The CFPB also announced it will begin accepting applications for new council members for 45 days beginning with a notice to be published in the Federal Register.

NCUA Holds March Board Meeting

The National Credit Union Administration (NCUA) Board held its third open meeting of 2019 at the agency’s headquarters and unanimously approved one item: a final rule making regulations regarding loans and lines of credit to members clearer and easier to follow.

New CFPB Law Protects Minors Against ID Theft

The Consumer Financial Protection Bureau (CFPB) has announced a new federal law (section 301 of EGRRCPA) that went into effect September 21, 2018, which lets parents and child welfare representatives of people under 16, as well as legal guardians, request a security freeze, also called a credit freeze, on their behalf. Taking this step can help protect a young person from identity theft and fraud – and it’s free.  

NCUA Board’s Partnership Transformed Regulatory Structure

ALEXANDRIA, Va. – By working together in a bipartisan manner, the NCUA Board enacted a number of regulatory reforms and modernization initiatives to meet its statutory obligation of ensuring a safe and sound credit union system while providing credit unions with measures of regulatory relief, National Credit Union Administration Board Chairman J. Mark McWatters and Board Member Rick Metsger said.

CFPB Issues Guide for Its Payday Lending Rule

ALEXANDRIA, Va. – On February 20, 2019, the Consumer Financial Protection Bureau (CFPB) issued a Small Entity Compliance Guide on the payment-related provisions of its Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule. The Guide covers aspects of the rule that go into effect on August 19, 2019.

CFPB Issues Resources for Prepaid Product Agreements

ALEXANDRIA, Va. – On February 27, 2019, the Consumer Financial Protection Bureau (CFPB) released technical specifications and related resources for credit unions that issue prepaid products to members. The resources include instructions for submitting prepaid product agreements to Collect, the CFPB’s database of those agreements. Credit unions must use Collect beginning April 1, 2019.

CFPB Publishes 2019 Lists of Rural and Underserved Counties

ALEXANDRIA, Va. – On February 12, 2019, the Consumer Financial Protection Bureau (CFPB) published lists of rural and underserved counties for use in 2019, and a tool to assist credit unions in use of the lists. These help credit unions determine if they will be eligible for a safe harbor and assist in applying certain regulatory provisions related to mortgage loans.

FFIEC Members Adopt Policy Statement on the Report of Examination

The Federal Financial Institutions Examination Council (FFIEC) members issued principles to promote consistency, clarity and ease of reference for the presentation of information in examination reports. The FFIEC Policy Statement on the Report of Examination was developed as part of the FFIEC’s Examination Modernization Project, which is aimed at reducing unnecessary regulatory burden on community financial institutions.

CFPB issues ANPR on S. 2155-required changes to PACE financing

The Consumer Financial Protection Bureau (CFPB) issued an advance notice of proposed rule-making (ANPR) Monday on Property Assessed Clean Energy (PACE) financing. The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) directs the CFPB to prescribe certain PACE consumer disclosures, and CUNA and leagues have urged the Bureau to quickly implement the statute.

Consumer Financial Protection Bureau Releases Report on First-Time Homebuying Service members

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) released a report focusing on mortgages made to first-time homebuyers, who are serving in the armed forces or are veterans. The Bureau’s report is the first time researchers have been able to provide a description and analysis of service members’ mortgage choices and mortgage performance, both during and after the housing crisis of the last decade.

CU Journal Outlines What to Expect from a New NCUA Board

Following today's vote from the Senate Banking Committee, Todd Harper and Rodney Hood's nominations to the National Credit Union Administration board are headed to a vote in the full Senate. The pair's confirmation hearing earlier this month gave the industry a glimpse at what it could expect should both nominees be confirmed. It would be the first time in nearly three years the board was at full capacity. CU Journal outlines eight takeaways industry experts gleaned from the pair's nomination and hearing.

CFPB Issues Reference Tool for 2019 HMDA Data Collection

The Consumer Financial Protection Bureau (CFPB) issued the 2019 edition of the Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart. The chart is a reference tool for credit unions and includes information on data points required to be collected and recorded in 2019, and reported to the CFPB in 2020 under the Home Mortgage Disclosure Act, as implemented by Regulation C.

SSA Amends Rules on Representative Payee Approval

The Social Security Administration (SSA) has published 84 FR 4323 in the Federal Register last week, a final rule on conducting background checks to prohibit persons convicted of certain crimes from serving as representative payees under the Social Security Act, as required by the Strengthening Protections for Social Security Beneficiaries Act of 2018. The rule will be effective March 18, 2019.

NCUA Review Finds No Bank Secrecy Act Data Breach

Upon learning of the recent spear phishing campaign targeting Bank Secrecy Act officers at credit unions, the NCUA conducted a comprehensive review of its security logs and alerts. This review is completed, and it did not find any indication that information was compromised. The most recent information available indicates the campaign extends beyond credit unions to other parts of the financial sector.

FTC works to get your money back

The Federal Trade Commission (FTC) brings lawsuits to stop unfair and deceptive business practices. One way it helps right those wrongs is by getting refunds to people who lost money. And from July 2017 to June 2018, people got more than $2.3 billion in refunds from FTC cases.

Supervisory Committee Audit Changes Will Simplify Compliance

Thursday, the NCUA Board held its second open meeting of 2019 at the agency’s headquarters today and unanimously approved one item: A proposed rule to clarify and provide additional flexibility in the agency’s regulation covering required credit union supervisory committee audits. The Office of the General Counsel also attended the meeting and briefed the Board on a final interagency rule covering loans in special flood hazard areas.

Payday Lender Fined $100K

The Consumer Financial Protection Bureau (CFPB) Tuesday announced a settlement with payday lender Cash Tyme for Consumer Financial Protection Act (CFPA) violations related to unfair acts and practices. The company, which has retail lending outlets in Alabama, Florida, Indiana, Kentucky, Louisiana, Mississippi and Tennessee, has been ordered to pay a civil money penalty of $100,000.

CUs Beware, “Phishing” Emails are Alive and Well!

The USA PATRIOT Act, Section 314(b) permits financial institutions (after certain notice provided to the U.S. Department of Treasury), to share information with one another in order to identify and report to the federal government activities that may involve money laundering or terrorist activities.

HMDA 2018 Data Reporting Deadline March 1

Financial institutions, including credit unions, required to file Home Mortgage Disclosure Act (HMDA) data should begin soon. Beginning with HMDA data collected in or after 2017, financial institutions will use the HMDA Platform to upload their loan/application registers (LARs), review edits, certify the accuracy and completeness of the data, and submit data for the filing year.

Time to Order Materials for National Consumer Protection Week

National Consumer Protection Week (NCPW) 2019 is just around the corner. This year, NCPW is March 3 – 9, 2019. That’s just about a month away, so now is the time to jump into planning. During NCPW, government agencies and consumer protection groups band together to help people understand their consumer rights and make well-informed decisions about money. Credit unions are encouraged to participate.

CUs Need to be Included in FHFA’s Proposed Small Member Goal

CUNA wrote to the Federal Housing Finance Administration (FHFA) Tuesday opposing its proposed Federal Home Loan Bank (FHLB) affordable housing goals regulations because they specifically exclude credit unions from being eligible to participate in the newly created smaller member participation goal. CUNA sent its comment letter in response to FHFA’s proposed regulation on its affordable housing goals.

Taxi Medallion Lender Progressive CU Posts a 2018 Loss of Almost $103 Million

Progressive Credit Union (New York, NY) reported a loss of $102.99 million for 2018, according to Keith Leggett’s Credit Union Watch. The credit union’s loss for the fourth quarter was $49.7 million. A casualty of the disruption to the taxi industry by ride sharing companies, Progressive Credit Union was acquired by PenFed earlier this month. PenFed ($24.1 billion in assets, 1.7 million members as of Sept. 30) chose to keep all of Progressive’s loans including its taxi medallion loans. 

CFPB Fines Payday Lender $3.2M

The Consumer Financial Protection Bureau (CFPB) announced Friday that it has ordered Enova International to pay a $3.2 million civil penalty for unfair practices related to unauthorized debiting of accounts and failure to honor loan extensions.

CUNA Outlines Concerns with NCUA’s Fidelity Bond Proposal

CUNA has several concerns with the National Credit Union Administration (NCUA)’s proposed regulation on fidelity bonds, it noted in a comment letter sent to the agency Tuesday. NCUA’s proposal is part of the changes recommended by the agency’s Regulatory Reform Task Force, which was created to oversee NCUA’s regulatory reform agenda.

CFPB Civil Penalty Inflation Adjustments

On January 15, 2018, the Consumer Financial Protection Bureau (CFPB) announced the annual adjustments for inflation to the CFPB’s civil penalty amounts, as required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This final rule becomes effective upon publication in the Federal Register.

CFPB Signals ATR Changes Under Payday Rule

An American Banker article suggests that the Consumer Financial Protection Bureau (CFPB) will likely remove ability-to-repay (ATR) provisions from its 2017 payday lending rule. In its Fall 2018 Rule-making Agenda released in October the CFPB said that it would issue a proposed rule-making early this year to revisit certain provisions of the rule.

What’s NEW at League InfoSight!

Searching for information on a credit union compliance or other topic? Looking for an educational video? Don’t forget about League InfoSight! InfoSight is constantly updating its content and education videos. Check out the following for the latest. To access League InfoSight and the Compliance Connection Videos go to www.njcul.org or click here.

CUNA Calls for Increased Bylaw Flexibility

CUNA supports an approach to federal credit union bylaws that provides those institutions flexibility to work within the bylaws, as well as an efficient amendments process when deviation is appropriate, CUNA wrote to the National Credit Union Administration (NCUA) Monday. CUNA submitted its comment letter in response to NCUA’s bylaws proposed rule.

NCUA Re-districting Completed

The National Credit Union Administration (NCUA)'s restructuring of its regional offices took effect with the new year. The changes reduced the agency's regional offices from five to three with the closure of the Albany (Region I) and Atlanta (Region III) offices. The remaining three regions have been organized geographically instead of numerically with Eastern, Southern and Western regional offices.

CFPB releases guidance on public HMDA data

The Consumer Financial Protection Bureau (CFPB) has released final policy guidance describing the Home Mortgage Disclosure Act (HMDA) data it plans to make available to the public starting this year. The final policy guidance applies to HMDA data compiled by financial institutions in or after 2018 and made available to the public by the CFPB beginning in 2019.

Bureau announces asset-size threshold adjustments under HMDA (Regulation C) and TILA (Regulation Z) and an annual adjustment under FCRA

The Bureau of Consumer Financial Protection (BCFP) has announced the asset-size exemption thresholds for depository institutions under Regulation C. The Bureau has also announced the asset-size exemption thresholds for certain creditors under the escrow requirements and small creditor portfolio and balloon-payment qualified mortgage requirements, and the small creditor exemption from the prohibition against balloon-payment high-cost mortgages under Regulation Z. Finally, the Bureau has announced the annual adjustment to the maximum amount consumer reporting agencies may charge consumers for making a file disclosure to a consumer under FCRA.

Treasury Publishes National Illicit Finance Strategy and Supporting Risk Assessments

WASHINGTON - The U.S. Department of the Treasury issued the National Strategy for Combating Terrorist and Other Illicit Financing (National Illicit Finance Strategy), pursuant to Sections 261 and 262 of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA). The Strategy describes and assesses current U.S. government efforts to combat illicit finance threats and risks and identifies priorities, objectives, and potential areas for future improvement. It also highlights U.S. interagency and intergovernmental efforts to combat illicit finance domestically and internationally, including enforcement measures that include sanctions, prosecutions, and asset forfeiture, as well as improvements in information sharing mechanisms and updated guidance to aid financial institutions in detecting and combating illicit finance threats.

FASB to Conduct CECL Roundtable in January

Financial Accounting Standards Board (FASB) announced it will discuss current expected credit loss (CECL) implementation at a public roundtable discussion, likely in January 2019. FASB recently finalized a CUNA/League-backed delay in CECL implementation. CUNA and the state leagues continue to maintain the standard is not appropriate for credit unions.

CUNA, Trades Press Agencies for CECL Relief

CUNA joined with four other financial services trade groups Wednesday to press the Financial Stability Oversight Council (FSOC) for a delay in CECL (current expected credit loss) implementation until a transparent quantitative impact study is performed and shared with the industry. The National Credit Union Administration (NCUA) is a member of the FSOC.

NCUA, Six state regulators launch pilot program

The National Credit Union Administration (NCUA) announced last week that it and six state credit union regulators will launch an alternating examination pilot program for a select group of federally-insured, state-chartered credit unions. According to the agency, the program is based on its 2016 Exam Flexibility Initiative report, and will run for one full alternating cycle of approximately three years.

NCUA Board Lowers Share Insurance Fund Normal Operating Level to 1.38 Percent

Agency Will Return to Three-Year Rolling Regulation Reviews in 2019

ALEXANDRIA, Va. – The National Credit Union Administration Board held its eleventh open meeting of 2018 at the agency’s headquarters this week and unanimously approved three items: lowering the normal operating level of the National Credit Union Share Insurance Fund to 1.38 percent from 1.39 percent, posting the final report of the agency’s Regulatory Reform Task Force in the Federal Register, following a briefing by the Office of the General Counsel, and a final rule making technical amendments to agency regulations to correct minor drafting errors and rescind certain unnecessary provisions.

NLRB Further Extends Time for Submitting Comments on Proposed Joint-Employer Rule-making

WASHINGTON — The National Labor Relations Board (NLRB) is extending the time for submitting comments regarding its proposed rule-making to address its joint-employer standard for an additional 30 days. The submission window is currently open and interested parties may now file comments on or before Monday, January 14, 2019. Comments replying to the comments submitted during the initial comment period must be received by the Board on or before January 22, 2019.

NCUA Files FOM Appeal Brief

The National Credit Union Administration (NCUA) yesterday filed its brief for the appeal of the U.S. Court of Appeals for the D.C. Circuit decision in the American Bankers Association (ABA) lawsuit that challenged the agency's Field of Membership (FOM) rule. The lower court upheld two challenged portions of NCUA's FOM rule and struck down two provisions in the lawsuit filed against the agency.

Pending Regulatory Comment Calls

The IRS has published 83 FR 56763 in a recent Federal Register proposed amendments to the regulations relating to hardship distributions from section 401(k) plans. The amendments reflect statutory changes affecting section 401(k) plans, including recent changes made by the Bipartisan Budget Act of 2018. These regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of plans that contain cash or deferred arrangements or provide for employee or matching contributions. Comments and requests for a public hearing must be received by January 14, 2019.

BCFP Issues 2019 Regulations Z and M Dollar Thresholds

The Bureau of Consumer Financial Protection (BCFP), along with the Federal Reserve Board, updated the dollar thresholds in Regulation Z (Truth in Lending or TILA) and Regulation M (Consumer Leasing) that will apply for determining exempt consumer credit and lease transactions in 2019. The Dodd-Frank Act requires these thresholds be adjusted annually based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Interagency Regulators Encourage BSA Innovation

The Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), Financial Crimes Enforcement Network (FinCEN), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currancy (OCC) have issued a joint statement to encourage banks and credit unions to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet their Bank Secrecy Act/anti-money laundering (BSA/AML) compliance obligations.

CUNA Talks CU Jobs, Rule-makings with DOL

CUNA met with the Department of Labor (DOL) Monday to discuss several credit union related issues. In addition to discussions on DOL rule-makings, CUNA provided the agency with data estimating the credit union sector supports nearly 900,000 jobs nationally.

U.S. Department of the Treasury’s FinCEN and Federal Banking Agencies Issue Joint Statement Encouraging Innovative Industry Approaches to AML Compliance

WASHINGTON— As a result of a working group established by the U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence and the Federal depository institutions regulators, the Financial Crimes Enforcement Network (FinCEN) and its regulatory partners issued a joint statement to encourage banks and credit unions to take innovative approaches to combating money laundering, terrorist financing, and other illicit financial threats. 

Faster Payments Webinar Recording Available

CUNA members can register for free to access a recording of Wednesday's webinar on the Federal Reserve’s development of faster payments. The webinar was designed to answer member questions and solicit feedback for CUNA’s comments. The recording will be posted within the next 48 hours, and it features a discussion of faster payments as CUNA prepares its comments for the Fed, due Dec. 14.

BCFP’s Office of Cost Benefit Analysis Consistent with CUNA Recommendations

The Bureau of Consumer Financial Protection (BCFP) seeks an individual to lead a new Office of Cost Benefit Analysis, according to a notice posted Monday. CUNA and the state leagues have repeatedly called on the BCFP to conduct more comprehensive cost-benefit research and analysis in connection with its rule-makings and supervisory activities. It was among the numerous recommendations contained in the regulatory relief white paper CUNA submitted to the BCFP this past summer.

Next BCFP CUAC Meeting Scheduled for Dec. 6

The Bureau of Consumer Financial Protection (BCFP) will host its next Credit Union Advisory Council (CUAC) meeting Dec. 6, according to a notice published Wednesday in the Federal Register. According to the Bureau, it will be conducted via conference call, and members will receive the agenda when they RSVP.

CECL Delay Made Official by FASB

The Financial Accounting Standards Board (FASB) has officially issued an update to its current expected credit losses (CECL) standard, delaying implementation for credit unions for fiscal years beginning after December 2021. CUNA strongly pushed for the delay for help credit unions come into compliance.

NCUA Encourages CUs to Conduct Voluntary Credit Union Diversity Self-Assessment

ALEXANDRIA, Va. - The National Credit Union Administration (NCUA) sent a Letter to Credit Unions (18-CU-05) that explains that federally-insured credit unions, especially those with 100 or more employees, are encouraged to conduct and submit the annual Voluntary Credit Union Diversity Self-Assessment to the NCUA’s Office of Minority and Women Inclusion before December 31, 2018. The NCUA encourages credit unions to use the self-assessment as a source of diversity best practices and as a tool to assess and guide diversity efforts.

Judge Orders Stay of BCFP’s Payday Rule Implementation Date

A judge in the U.S. District Court for the Western District of Texas ordered a stay Tuesday of the implementation date of the Bureau of Consumer Financial Protection’s (BCFP) short-term, small-dollar lending rule. The rule is scheduled to go into effect in August 2019, but the bureau said Oct. 26 that it intends to issue a proposed rule in January.

FASB to Address Additional CECL Concerns

During a Financial Accounting Standards Board's (FASB) Transition Resource Group for Credit Losses meeting Thursday, FASB staff indicated it would spend additional time working on certain operational challenges associated with the current expected credit loss (CECL) standard.

Due diligence for members that privately own ATMs

Privately-owned ATMs are typically found in convenience stores, bars, restaurants, grocery stores, or check cashing establishments. Fees and surcharges for withdrawals, coupled with additional business generated by customer access to an ATM, make the operation of a privately-owned ATM profitable. As a result, more credit unions are being approached to open accounts for the owners of these ATMs.

NCUA Awards $2M in Grants to 203 Low-income CUs

The National Credit Union Administration (NCUA) awarded $2 million in grants to 203 low-income credit unions, funding from the agency’s Community Development Revolving Loan Fund (CDRLF). CUNA and the state leagues strongly support full funding for the CDRLF and successfully fought to restore funding when the fund was zeroed out for fiscal year 2018 by the Trump administration.

Court Sets FOM Lawsuit Appeal Dates, NCUA Brief Due Dec. 5

The D.C. Circuit Court of Appeals has set a briefing schedule for the appeal of the field-of-membership lawsuit brought against the National Credit Union Administration (NCUA) by the American Bankers Association (ABA). CUNA fully supports NCUA in its appeal and plans to submit an amicus brief in the appellate litigation.

BCFP Announces Coming Changes to Payday Lending Rule

The Bureau of Consumer Financial Protection (BCFP) expects to issue proposed rules in January reconsidering its short-term, small-dollar lending rule, it announced Friday. The Bureau stated it will make final decisions regarding the scope of the proposal closer to the issuance of the proposed rules, but it currently plans to propose revisiting only the ability-to-repay provisions, not the payments provisions.

Credit Union Journal: McWatters to credit unions: Not NCUA’s job to ‘hold your hand’

This week the Credit Union Journal reported on National Credit Union Administration (NCUA) Chairman Mark McWatters’ remarks as he fired back at claims from a former board member that the agency’s requests for third-party cybersecurity vendor oversight are merely duplicating work already being done by other regulators. McWatters’ remarks came during a Q&A session following remarks directed at community development credit union professionals attending the Inclusiv conference in Clearwater, Fla.

CUNA Highlights League, CU Autodialer Suggestions to FCC

CUNA highlighted several credit unions and leagues emphasizing the critical importance of a narrow definition of an automated telephone dialing system (ATDS) in its reply comments to a Federal Communications Commission (FCC) petition Thursday. CUNA filed its original comments last week in response to the petition, which was issued by the FCC in light of a decision by the Ninth Circuit Court.

CECL Delay Approved by FASB

The Financial Services Accounting Board (FASB) approved Wednesday several CUNA/league backed changes to its current expected credit losses (CECL) standard. CUNA and the state leagues pressed FASB to extend the implementation date for credit unions, and the board proposed the change earlier this year.

FFIEC Launches New BSA/AML InfoBase Site

The Federal Financial Institutions Examination Council (FFIEC) launched a redesigned Bank Secrecy Act/Anti-Money Laundering (BSA/AML) InfoBase Web site last week, aimed at sharing financial institution examination procedure information with examiners, financial institutions, the public and other stakeholders.

FOM Narrative Approach, NCUA Offers Guidance

The National Credit Union Administration (NCUA) released a letter to federal credit unions (18-FCU-02) Tuesday that provides guidance on how credit unions can use a written narrative to establish a well-defined local community. The narrative approach falls under the NCUA's second field-of-membership (FOM) rule, which became effective Sept. 1.

Reg Agencies Address Benefits of BSA Collaboration; NJCUL Provides Members Affordable BSA Training for Staff and Boards

The Treasury’s Financial Crimes Enforcement Network (FinCEN) joined federal financial regulators, including the National Credit Union Administration (NCUA), last week to issue a joint statement on sharing Bank Secrecy Act (BSA) resources. The statement addresses the benefits of financial institutions entering into collaborative arrangements to help manage their BSA and anti-money laundering (AML) obligations more efficiently and effectively.

CUNA’s Nussle, Schenk Talk CU Regulatory Climate at CEI

CUNA President/CEO Jim Nussle and Deputy Chief Advocacy Officer for Policy Analysis Mike Schenk addressed the state of credit unions and opportunities for the future Thursday at the Competitive Enterprise Institute (CEI). Nussle and Scheck discussed the need for regulatory relief, credit union history, the Community Reinvestment Act and other topics.

FinCEN and Federal Regulators Issue CIP Exemption Order

FinCEN, the National Credit Union Administration (NCUA) and the federal banking regulators jointly issued an exemption from the Customer Identification Program (CIP) requirements for certain property and casualty finance contracts provided by financial institutions to small businesses (referred to as premium finance loans or premium finance lending).