Compliance & Regulatory News

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, 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.


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 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).

Federal Regulators, FinCEN Issue CIP Exemption Order
ALEXANDRIA, Va. – The NCUA jointly issued an exemption for the Customer Identification Program requirements, Section 748.2 of the NCUA’s Rules and Regulations, for certain property and casualty finance contracts provided by credit unions to small businesses. Credit unions must still comply with all other regulatory requirements of the Bank Secrecy Act including the requirement to file suspicious activity reports as applicable.
New High Intensity Drug Trafficking Areas Designated, New Jersey Among Those Named

 The White House’s James Carroll, Deputy Director of the Office of National Drug Control Policy, announced the designation of 10 new areas across Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, and West Virginia as High Intensity Drug Trafficking Areas (HIDTAs). Credit unions should beware that with increase in drug traffic within a geographic area comes an increase in attempts to flow illicit monies through financial institutions.

CUNA Updates MLA Card Fee Spreadsheet

CUNA has updated its Military Lending Act (MLA) credit card fee comparison spreadsheet for the third quarter, updated as of September 2018. The updated resource can be found in the CUNA Compliance Community’s “Compliance Resources” tab, and under the “Resources” tab in CUNA’s MLA e-Guide.

Proposed Rule Would Change Appraisal Requirement Threshold, Exempt Some Transactions

Share Insurance Fund Posts $32.5 Million in Net Income in Second Quarter

ALEXANDRIA, Va. – The National Credit Union Administration (NCUA) Board held its eighth open meeting of 2018 at the agency’s headquarters yesterday and unanimously approved two items.

Pending Regulatory Comment Calls

CUNA plans to comment on the following pending regulatory proposals. For comment letters to have the greatest impact, consider whether and how these proposals would affect your credit union and contact the CUNA staff listed below for each proposal with your feedback. Also, feel free to contact the CUNA staff listed if you would like more information on how to send your own letter. 

Proposed Paid Sick Leave Regulations Issued; Free NJCUL Webinar on NJ Employers Requirements this Friday

Under legislation signed into law by Gov. Phil Murphy in May (A1827, now P.L. 2018, c.10), effective October 29, 2018 most private sector employers will be required to provide at least 40 hours of paid sick leave in a 12-month period to every New Jersey employee for their own diagnosis, treatment, or preventative care, or, for that of a family member.

CECL Changes Backed, FASB Asked to Keep Eye on Future Relief

CUNA recognized the improvements proposed by the Financial Accounting Standards Board (FASB) in its current expected credit losses (CECL) standard, CUNA wrote to the board Monday. CUNA’s comment letter was sent in response to a FASB proposal that would make several CUNA-backed changes to the standard, a proposal that CUNA understands was at least in part due to a May letter from CUNA raising concerns.

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Florence

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators recognize the serious impact of Hurricane Florence on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

FinCEN grants permanent exceptive relief from Beneficial Ownership Rule

FinCEN issued a ruling [FIN-2018-R003] granting permanent exceptive relief from Beneficial Ownership requirements for legal entity customers for certain account rollovers, renewals, modifications and extensions. The permanent relief, issued hours before a previous temporary exceptive ruling was due to expire, broadened somewhat the scope of relief provided by the temporary ruling, but maintains strict definitional limits on which accounts are affected. Financial institutions will continue to be required to identify and verify the identity of beneficial owners of legal entity customers at the initial account opening of all accounts (including those affected by the exceptive relief) occurring on or after May 11, 2018.

Bureau of Consumer Financial Protection Releases Latest Supervisory Highlights

WASHINGTON — The Bureau of Consumer Financial Protection (BCFP) released its 17th edition of Supervisory Highlights. The report covers Bureau supervision activities generally completed between December 2017 and May 2018, and shares observations in the areas of auto loan servicing, credit card account management, debt collection, mortgage servicing, payday lending, and small business lending.

NCUA Chairman McWatters Letter on Credit Union Supervision

The National Credit Union Administration (NCUA) Board Chairman J. Mark McWatters wrote a response letter to the Financial Institution Sub-committee Chairman Blaine Leutkemeyer on credit union supervision. The letter from McWatters discusses NCUA's supervisory program and the appropriate ways the NCUA uses agency guidance documents. The letter went on to share information with Chairman Leutkemeyer of some of the agency’s programs and initiatives the NCUA has established to provide regulatory relief designed to minimize the burdens facing credit unions. Click here to read the letter, dated August 14, 2018, in full.

CUNA Calls for $3B Threshold for Extended Exam Cycle Eligibility

The National Credit Union Administration (NCUA) should work to fix a regulatory disparity that leaves credit unions with an uneven playing field when it comes to an extended examination cycle, CUNA President/CEO Jim Nussle wrote to NCUA Chairman Mark McWatters Monday. The recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) increases the asset limit below which depository banks are eligible for an 18-month exam cycle to $3 million, while credit unions must fall under $1 billion in assets to be eligible.

S. 2155 HMDA Relief Provisions Clarified

The Bureau of Consumer Financial Protection issued an interpretive final rule Friday, clarifying the Home Mortgage Disclosure Act (HMDA) partial exemptions contained in the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). CUNA wrote to Acting Director Mulvaney this summer urging the Bureau to quickly effectuate the regulatory relief in S. 2155, especially the changes to HMDA.

NCUA Provides CDD, Beneficial Owner Rule Info

NCUA’s latest supervisory letter (SL-18-01) addresses compliance with the new Bank Secrecy Act (BSA) customer due diligence (CDC) and beneficial ownership rules. According to the agency, once the BSA Questionnaire and consumer compliance violations citations have been added to AIRES, expected in September, field staff will begin evaluating credit union compliance with the new CDD rules.

CUNA, Organizations team with FS-ISAC for paper on ATM scams

CUNA has teamed with other financial services organizations to create a white paper, “Understanding ATM Attacks,” explaining how cybercriminals conduct such attacks and how financial institutions can protect consumers. The paper was released by the Financial Services Information Sharing and Analysis Center (FS-ISAC), and is a joint effort between CUNA, FS-ISAC, the American Bankers Association and the Independent Community Bankers Association.

Comments on CECL reg. relief due in September

Comments on the Financial Accounting Standards Board's (FASB) proposal of a CUNA-backed change to implement its current expected credit loss (CECL) standard is due in September. CUNA called for FASB to make clarifications to the implementation date, and the board agreed to issue the proposal at its July meeting.

Creation of ‘Cyber Lexicon’ Supported by World Council

The World Council of Credit Unions supports the Financial Stability Board’s (FSB) initiative to develop a “cyber lexicon” but urges the board to take a proportional approach that does not impose additional compliance burdens on credit unions and other community-based financial institutions. The World Council submitted its letter in response to a consultative document from FSB on developing a cyber lexicon to address cybersecurity and cyber resilience in the financial sector.

NCUA Provides Examination Guidance for Bank Secrecy Act Customer Due Diligence and Beneficial Ownership Compliance

The NCUA issued examination procedures to field staff regarding customer due diligence and beneficial ownership provisions that are part of the Bank Secrecy Act/Anti Money Laundering Rules (BSA/AML). A Letter to Credit Unions (18-CU-02) sent to credit union Board Chairs and management provides all federally insured credit unions with the examination expectations provided to the NCUA examiners regarding the review of a credit union’s compliance with these areas. This includes new examination procedures that will be incorporated into the Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual.

FinCEN Issues Exceptive Relief Regarding Beneficial Ownership Requirements

Last week, the Financial Crimes Enforcement Network (FinCen) issued an ‘Extension of Limited Exception from Beneficial Ownership Requirements for Legal Entity Customers of Certain Financial Products and Services with Rollovers and Renewals On May 16, 2018”.  FinCen’s 90-day limited exceptive relief covers financial institutions from the obligations of the Beneficial Ownership Rule for Legal Entity Customers (Beneficial Ownership Rule) for certain financial products and services (i.e., certificate of deposit or loan accounts) that were established before the Beneficial Ownership Rule’s Applicability Date, May 11, 2018.

Pending Regulatory Comment Calls

It is important for credit unions to exercise their right to provide input on proposed or changing regulation. For comment letters to have the greatest impact, consider whether and how these proposals would affect your credit union; including unintended consequences. One easy way to submit your comments is through the League sponsored PowerComment. If you have a login, it just takes a few seconds to get access to a comprehensive look at upcoming or pending regulations and then use the sample comment letter to make it your own, then just hit send! If you don’t, take a few minutes to register for a login and to get alerts directly to you.

CUNA Highlights Non-member Deposit Regulatory Changes to Benefit CUs

CUNA encouraged NCUA to analyze ways regulations governing non-member deposits could be improved without posing additional risk, given the significant benefits such changes would provide. CUNA President/CEO Jim Nussle wrote to NCUA Chairman J. Mark McWatters and board member Rick Metsger to follow up on recent meetings between agency staff and CUNA’s Small Credit Union Committee.

Push for TCPA Relief Continues

CUNA requested a House sub-committee press upon the Federal Communications Commission the need to revise its implementation of the Telephone Consumer Protection Act (TCPA) in a letter for a Wednesday hearing. CUNA sent its letter for the record of the FCC oversight hearing conducted by the House Energy and Commerce sub-committee on communications and technology.

House Passes CUNA/League-supported RBC Delay

The JOBS and Investor Confidence Act of 2018 (S. 488) passed the House of Representatives in a 406-4 vote on Tuesday. Title XVII of the House Amendment would delay the risk-based capital rule recently finalized by NCUA. CUNA supports the measure as it reduces the impact on credit unions by pushing the effective date from January 1, 2019 to January 1, 2021.

NJCUL Takes the ‘Scare’ Out of Compliance at 9th Annual Compliance Conference on Friday the 13th

HIGHTSTOWN, N.J. – The New Jersey Credit Union League hosted a sold-out annual compliance conference with the theme of Don't Let Regulators Find Skeletons in Your Closet!” NJCUL President/CEO David Frankil welcomed the large group of CEOs, board members, and compliance professionals, who then heard from seven speakers that provided best practices, tips, real-world scenarios, and practical solutions to help keep regulators out of their closet!

CUNA Urges CFPB to Regularly Assess Complaint System

CUNA urged the Consumer Financial Protection Bureau (CFPB) Friday to regularly assess its overall complaint system for compliance burden relief opportunities. CUNA wrote its letter in response to a Bureau request to the Office of Management and Budget to renew information collection associated with its Company Portal.

Reg CC Changes Effective July 1

Less than one week from today, new warranty and indemnity rights, liabilities and obligations to Regulation CC could impose greater risks for credit unions. The final rule creates a new Remote Deposit Capture Indemnity in Section 229.34(f) to address the allocation of liability when a depositary institution, such as a credit union accepts deposit of a check through “remote deposit capture.”

With Two More Frivolous ADA Suits Against CUs Tossed, CU System Continues Advocacy Efforts

Two credit unions facing frivolous lawsuits alleging Americans with Disabilities Act (ADA) violations were thrown out this week. Credit unions are facing lawsuits due to uncertainty with how the ADA applies to Web sites, and CUNA and the leagues have deployed the system’s 360-degree advocacy resources to find a solution in the legal, regulatory and legislative arenas.

Ohio, Alabama Judges Toss Out ADA Cases

District Court judges in Ohio and Alabama have thrown out two lawsuits against a pair of credit unions — Dover, Ohio-based DoverPhila Federal Credit Union and Decatur, Ala.-based Family Security Credit Union — whose Web sites allegedly violated the Americans with Disabilities Act (ADA), according to Credit Union Times. This ruling comes on the heels of a recent string of dismissals of similar cases by District Courts in Virginia.

Donovan op-ed: CFPB could help consumers by working with CUs

Consumer Financial Protection Bureau (CFPB) regulations should be appropriately tailored and based on data, CUNA Chief Advocacy Officer Ryan Donovan wrote in a Credit Union Journal op-ed that appeared Friday. Donovan said the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) is an important step, but credit unions need more relief from the Bureau.

Field-of-Membership Rule Changes Provide More Flexibility and Consumer Choice

ALEXANDRIA, Va. – The National Credit Union Administration (NCUA) Board held its sixth open meeting of 2018 at the agency’s headquarters today and unanimously approved two items: a final rule amending the agency’s regulations governing its chartering and field-of-membership rules with respect to applicants for a community charter approval, expansion, or conversion and a final rule to provide members of federally insured credit unions with greater transparency when those credit unions seek voluntary mergers.

Kathy Kraninger Nominated to Serve as CFPB Director

President Donald Trump nominated White House budget official Kathy Kraninger to lead the Consumer Financial Protection Bureau. CUNA President/CEO Jim Nussle said, "CUNA, leagues and credit unions look forward to working with the new director and will continue their push for regulatory relief."

CUNA Continues FOM Support as NCUA, ABA Appeal Court Ruling

The American Bankers Association (ABA) filed a cross-appeal in response to NCUA’s appeal of the U.S. District Court ruling regarding NCUA’s field-of-membership (FOM) rule. CUNA strongly supports NCUA’s appeal and further believes the court erred in its finding that the agency overstepped its statutory authority with regard to the combined statistical area (CSA) approach and the definition of rural district.

Reminder: Pending Regulatory Comments Due

There are a number of upcoming proposed regulations that need your voice! For comment letters to have the greatest impact, the League and regulatory agencies need to hear from you. Please consider whether and how proposals would affect your credit union and contact NJCUL’s Nicola Foggie at or call 1-800-792-8861, ext. 112, for assistance in evaluating the proposed regulation, providing your invaluable feedback, and/or writing your comment letter. Need more information on comment letter writing? Click here to check out NJCUL’s Comment Calls page.

Law Firm Soliciting CU Members Charged NSFs, CUs Urged to Ensure Compliance

CUNA has recently become aware of a Web site and social media advertisements that appear to be sponsored by a class action law firm inviting credit union members to contact the firm if they have been charged an overdraft or non-sufficient funds fee in connection with the use of a debit card. The League was made aware of this phishing scheme and alerted credit unions early last week. 

CUNA General Data Protection Regulation Webinar Rescheduled for May 30th

Due to technical difficulties, CUNA was forced to reschedule the General Data Protection Regulation webinar. If you already registered, you do not need to register again. However, this allows more time for others to register as we still have space available. Register now to learn more about the regulation being implemented overseas, its potential impact on credit unions, and the prospects for similar restrictions in the U.S.- whether through legislation or industry self-policing.

NCUA Board Proposes Second Payday Alternative Loan Option, Seeks Comment on a Third

Share Insurance Fund Posts $33.1 Million Net Income in First Quarter

ALEXANDRIA, Va. – The National Credit Union Administration Board held its fifth open meeting of 2018 at the agency’s headquarters today and unanimously approved two items: notice of proposed rulemaking seeking comment on the agency’s proposal to provide federal credit unions with additional options for payday alternative loans, and a final rule clarifying agency procedures for resolving severance claims arising from involuntary liquidations. The Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund, which posted a net income of $33.1 million in the first quarter, primarily due to the strong investment income earnings. 

FinCEN Grants Temporary Beneficial Owner Relief

The Financial Crimes Enforcement Network (FinCEN) has issued a ruling to provide a 90-day limited exceptive relief to covered financial institutions from the obligations of the beneficial ownership requirements for Legal Entity Customers for certain accounts. The ruling is retroactively effective as of May 11, when the customer due diligence rule became effective, and runs through Aug. 9.

Comments on Ways to Streamline, Improve FCU Bylaws Due May 21

The NCUA Board is issued an advance notice of proposed rulemaking to solicit stakeholder comments on ways to streamline, clarify, and improve the standard Federal Credit Union (FCU) bylaws. The standard FCU bylaws provide a comprehensive set of corporate governance procedures that are mandatory for any FCU that had not adopted bylaws as of November 30, 2007. The Board is considering a number of significant changes to the FCU bylaws to provide enhanced operational flexibility to FCUs and to reduce regulatory compliance burdens on all FCUs.

Comments must be received on or before May 21, 2018.

Submit a comment quickly and easily through


Upcoming FREE Webinar on General Data Protection Regulation from CUNA

The General Data Protection Regulation (GDPR) goes into effect across the EU and UK on May 25, creating a host of compliance challenges for FIs in the region. This regulation focuses on data privacy and includes the well-publicized "right to be forgotten." Credit unions with members located in covered countries may already be affected. And given recent US headlines regarding data privacy, including the controversy at Facebook, it's fair to speculate whether some form of GDPR could find its way to these shores. Join CUNA's live webinar "General Data Protection Regulation - Present and Future Challenges for U.S. CUs" to learn more about the regulation being implemented overseas, its potential impact on U.S. CUs, and the prospects for similar restrictions in the US, whether through legislation or industry self-policing.

FFIEC Announces Availability of 2017 Data on Mortgage Lending

The Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on mortgage lending transactions at 5,852 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 that covers 2017 lending activity submitted by financial institutions on or before April 18, 2018.

Compliance: Upcoming Dates to Keep in Mind

May, 2018

July, 2018

For more information on compliance solutions or help with meeting regulatory requirements, contact NJCUL’s Nicola Foggie at or call 1-800-792-8861.

CUNA Recommends CID Changes to CFPB to Protect CUs

Several Bureau of Consumer Financial Protection (CFPB) Civil Investigative Demand (CID) processes have room for improvement, CUNA wrote to the Bureau Thursday. The Bureau’s request for information on the CID process is the first in the series of RFIs the Bureau issues to assess how it is performing its basic functions.

CFPB Finalizes Amendment to “Know Before You Owe” Mortgage Disclosure Rule

WASHINGTON — The Bureau of Consumer Financial Protection (CFPB) finalized an amendment to its “Know Before You Owe” mortgage disclosure rule that addresses when mortgage lenders with a valid justification may pass on increased closing costs to consumers and disclose them on a Closing Disclosure. The update is intended to provide greater clarity and certainty to the mortgage industry. 

Compliance: New Mortgage Servicing Rules now Effective

Thursday, April 19 marked the effective date of the second round of amendments to the Consumer Financial Protection Bureau’s (CFPB) mortgage servicing rules, finalized August 2016. This means confirmed successors in interest are now entitled to the same servicing protections available to borrowers under both Regulation Z and Regulation X.

Wells Fargo Mortgage, Auto Lending Practices Draw Big Fines

Two federal bank regulators hit Wells Fargo with $1 billion in fines today, the latest fallout from the wave of scandals to beset the bank. It will pay $500 million in penalties each to the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency, according to a statement from the CFPB.

NCUA Approves Stress Testing, Advertising Rules

ALEXANDRIA, Va. – The National Credit Union Administration (NCUA) Board held its fourth open meeting of 2018 at the agency’s headquarters Thursday and unanimously approved two items: a final rule reducing regulatory burdens on federally insured credit unions with assets of $10 billion or greater by removing certain current capital planning and stress testing requirements, and a final rule revising parts of the agency’s advertising rule to provide regulatory relief by allowing an additional advertising option, expanding exemptions, and eliminating one requirement.

Senate Bill to Clarify CFPB Insurance Authority Backed

CUNA wrote in support of a Senate bill Wednesday that would clarify that the business of insurance is exempted from the Consumer Financial Protection Bureau’s authority. The Business of Insurance Regulatory Reform Act was introduced by Sens. Tim Scott (R-S.C.), Tammy Baldwin (D-Wis.), Joe Manchin (D-W.V.) and Mike Rounds (R-S.D.).

Fed to Testify on U.S. Financial System, Hearings on Robocalls, Regulatory Relief Rules on NCUA Agenda

WASHINGTON – Both the House and Senate are in session this week. Committees in each chamber will hear a testimony from Federal Reserve Vice Chairman Randal Quarles on the U.S. financial system, and House and Senate committees will hold hearings on stopping abusive robocalls. The NCUA Board meets Thursday and will consider two rules that would offer credit unions greater flexibility in capital planning and advertising.

Now Available: FinCEN’s Samples of the Beneficial Owner Certification Form in MS Word and a Fillable PDF

FinCEN's CDD Beneficial Owner Certification Form is now available in an electronic format! Previously, credit unions expressed difficulty in using FinCEN's Beneficial Owner Certification Form located in Appendix A to the rule due to it being inconveniently divided over two pages of the rule.  According to FinCEN, its "CDD Certification Form is an optional form providing a convenient way for institutions to obtain and record information required by the CDD rule”.

NCUA’s CURE to Host Bank Secrecy Act Webinar

Register Now to Learn About Requirements for Ongoing Customer Due Diligence

ALEXANDRIA, Va. – Credit unions with questions about complying with customer due diligence requirements in the Bank Secrecy Act can get valuable information on a National Credit Union Administration webinar scheduled for April 25.

CUNA’s Dempsey talks TCPA Decision, Next Steps

"CUNA plans to seek additional clarity surrounding the Telephone Consumer Protection Act (TCPA), following a significant step forward with the D.C. Court of Appeals decision to overturn parts of the 2015 Omnibus Ruling," CUNA Senior Director of Advocacy Leah Dempsey said during an interview. Appearing on CUBroadcast, Dempsey broke down last week’s decision, what it means for credit unions and what could happen going forward.

FFIEC provides update of exam modernization project

FFIEC provides update of exam modernization project 

The members of the Federal Financial Institutions Examination Council (FFIEC) announced an update on its examination modernization project that was undertaken following the review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA). 

CU Obligations for Service Animal Accommodations

CUNA’s compliance staff was recently asked a question about a credit union's obligation under the Americans with Disabilities Act regarding service animals. While credit unions want to ensure members are protected from discrimination, they also want to maintain a safe environment for all members. 

Third Phase of Same Day ACH Starts Friday

The third and final phase of the same day automated clearing house (ACH) implementation is effective Friday, March 16. Effective with Phase Three, receiving financial institutions (RDFIs) must make funds available from same-day ACH credits for withdrawal by 5 p.m. at the RDFI’s local time.

CFPB Issues Final Rule to Help Mortgage Servicers Communicate with Certain Borrowers Facing Bankruptcy

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) this week issued a final rule to help mortgage servicers communicate with certain borrowers facing bankruptcy. The final rule gives mortgage servicers more latitude in providing periodic statements to consumers entering or exiting bankruptcy, as required by the Bureau’s 2016 mortgage servicing rule.

Senate Moves Forward on CUNA-Backed Bipartisan Reg Relief Bill

Senate Majority Leader Mitch McConnell filed cloture on the motion to proceed with the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) Thursday, moving the bill closer to floor consideration. The bipartisan regulatory relief bill is strongly supported by CUNA, which has launched a nationwide grassroots support effort.

CUNA Tool Allows CUs to Calculate SIF Equity Distribution

CUNA has created a calculator where credit unions can enter their NCUA charter number and get the amount of their estimated share insurance fund equity distribution, the estimated premium they would have paid in 2018 absent CUNA/league advocacy efforts and some related ratios. CUNA and state leagues strongly supported closing the Temporary Corporate Credit Union Stabilization Fund last year and issuing distributions starting this year.

NJCUL Holds Webinar on Legal Perspective of ADA Web Site Lawsuits with Attorney Michael DuPont

HIGHTSTOWN, N.J. – On Thursday, the New Jersey Credit Union League hosted a compliance webinar on the ADA Web Site Demand Letter Lawsuits issue from the legal perspective of attorney Michael DuPont. The webinar was the third in a series of in-person and virtual sessions on the ADA Web Site Demand letter topic. NJCUL brought credit union leaders and experts together to talk about what happened, actions credit unions can take to update their Web sites, risks, and legal consequences to receiving a demand letter from a law firm alleging a credit union has Web site discrepancies.

CUNA Talks Regulatory Relief with CFPB Director

Key CUNA staff met with Acting Consumer Financial Protection Bureau (CFPB) Director Mick Mulvaney Thursday to discuss ways to provide credit unions with regulatory relief. Ryan Donovan, CUNA Chief Advocacy Officer, and Leah Dempsey, Senior Director of Advocacy and Counsel, were joined by leaders of various financial services trade associations.