August Compliance Recap

August’s compliance recap, with a summary of regulatory issues that might impact the credit union, is available here.

MLA Interpretive Rule

The Department of Defense released its anticipated Guidance in regards to the new Military Lending Act requirements, effective October 3, 2016.  The Guidance is in the form of questions and answers, which are replicated below.  The Guidance is an Interpretive Rule, and will be published in the Federal Register and effective August 26, 2016. While the questions do address whether the … Read More

NACHA Third-Party Sender Registration Requirements

Effective September 29, NACHA’s Third-Party Sender Registration Rule will go into effect, and require that originating depository financial institutions (ODFI) submit and maintain information on every third-party sender with which it maintains a relationship.  A third-party sender is a processing intermediary between a financial institution and an end-user of ACH payments.  The Rule will require ODFIs to provide information regarding … Read More

Student Loan Servicing – Fix It Form

The CFPB has developed a “Fix It Form” that credit unions that service student loans may see. On August 18, the CFPB released the Form, along with a press release and the Loan Ombudsman’s Midyear Report, in response to complaints borrowers have with using income-driving repayment plans tied to their federal student loans. The press release and report summarizes complaints … Read More

Update to Consumer Complaint Process for Washington State

The Division of Credit Unions released Bulletin B-16-10 to announce that they will be transitioning to encrypted emails for notifying credit unions of filed complaints. Credit unions should submit point of contacts to receive complaint notifications from the DCU by September 15, as instructed in the Bulletin. Consumer Complaints – Electronic Communication The Division of Credit Unions (Division) is pleased … Read More

Military Lending Act – Are You Ready?

Compliance with the Military Lending Act changes will go into effect on October 3 (credit card compliance is not until October 3, 2017), and many credit unions are still trying to work out the details.  The Department of Defense has repeatedly promised guidance, but has not yet delivered.  Needless, the credit union must comply with the requirements beginning next month.  … Read More

Browser requirements for NMLS access

The NMLS announced, that starting August 22, NMLS users who are not using internet browsers that support TLS 1.2 will need to upgrade by October 8. After October 8, users who have not upgraded their browsers will be restricted from accessing NMLS until they have downloaded a version that supports TLS 1.2.  Should you have any questions, please visit the … Read More

Legal Opinion Letter 16-0604 – MBL Reporting

On August 9, the NCUA issued a legal opinion letter regarding the classification of business loans.  Essentially, when a single closed-end member business loan is paid down below the $50,000 threshold, the credit union no longer needs to classify the loan as a MBL.  Nor does the credit union include the loan when calculating the credit union’s statutory MBL limit. … Read More

Loss Mitigation Principles

The CFPB and the U.S. Department of Housing both recently released principles for loss mitigations (CFPB, HUD).  The papers result from the mortgage crisis and phasing out of the Home Affordable Modification Program (HAMP).  The documents do not establish any new requirements, but outline principles that should be incorporated into loss mitigation strategies.  The CFPB outlines four principles:  accessibility, affordability, … Read More

Proposed Amendments to Regulation Z Mortgage Disclosure Requirements

The CFPB issued proposed changes to amend the KBYO/TRID rules of Regulation Z.  The CFPB states that the proposed amendments memorialize its informal guidance on various issues and includes clarifications and technical amendments.  There are a number of proposed changes in proposal, but are not intended to revisit major policy decisions so soon after the October 2015 effective date. Comments … Read More