2016 NCUA Examination Focus

Akin to, the in-laws are coming, and they are bringing gifts… The NCUA issued Letter 16-CU-01 describing top areas of supervisory focus and will be part of the 2016 exam process.  The letter highlights: Cybersecurity Assessment NCUA encourages all credit unions to use the FFIEC tool to manage cybersecurity risks. NCUA also plans to begin incorporating the Cybersecurity Assessment Tool … Read More

Target Data Breach Settlement Website

A Target Data Breach Settlement website has been released providing information for financial institution class members of the Target data breach litigation. The website includes settlement terms, frequently asked questions, claim instructions and an on-line claim application. CLAIMS MUST BE FILED ONLINE (OR POSTMARKED FOR MAIL) ON OR BEFORE MARCH 22, 2016. If the credit union has not previously released … Read More

CFPB Provides Clarification on TRID Expectations & Liability

In December, the CFPB responded to a letter from the Mortgage Bankers Association regarding “lingering misperceptions and technical ambiguities” in TRID regulations. The CFPB’s letter states that, given inevitable yet unintentional errors in the early stages of the mortgage industry’s implementation of the regulations, regulators’ initial examinations will focus on industry members’ good faith efforts to ensure compliance with the rule. The CFPB … Read More

Cyber-Related Sanctions

The OFAC list is being updated to include persons engaging in significant malicious cyber-enabled activities. These entries on the OFAC list will include the identifier “[CYBER]”. Property in accounts held by listed persons should be placed in a blocked account, and transfers involving listed persons should be refused – similar to other entities on the OFAC list. This implements Executive … Read More

2016 HMDA Reporting Software Now Available

Version 2016 for CY 2016 data due March 1, 2017 is now available from the FFIEC. Each software version is year-specific (i.e., 2015 reporting requires 2015 DES and not 2016 DES). System Requirements The software must be installed locally on a hard disk; it is NOT network compatible. Minimum OS: Microsoft Windows Vista or Windows Server 2008 SP2 Internet connection … Read More

DCU Interpretive Letter I-15-04 Complying with GAAP in Relation to MBLs

The Division of Credit Unions has published Interpretive Letter I-15-04 (Complying with GAAP in Relation to MBLs). This Interpretive Letter clarifies the requirements for Washington State-chartered credit unions when complying with generally accepted accounting principles (“GAAP”) in relation to member business loans (“MBL”) and reserving for their allowance for loan and lease losses (“ALLL”) account. From the letter, State Credit … Read More

Oregon Reasonable Compensation

The State of Oregon codified its “reasonable compensation” rule allowing state-chartered credit unions to compensate their directors and supervisory committee members. Section 441-710-0305 details the requirements for compensation. Before paying compensation, the credit union must – operate in a safe and sound manner, incorporate bylaws allowing compensation, and adopt policies and procedures for compensation. Policies and procedures must include the … Read More

DCU Bulletin B-15-16 New Payment Process for DCU Semi-annual Assessment Fees

The Division of Credit Unions has published Bulletin B-15-16 (New Payment Process for DCU Semi-annual Assessment Fees). Starting Jan. 1, 2016 asset assessment fees will be collected on a semi-annual basis  (i.e. in January and July of each year). Under the new system, the credit unions will use  an online payment system to pay the asset assessment fee.  The new … Read More

Enforcement Policy Statement on Deceptively Formatted Advertisements

The Federal Trade Commission issued an enforcement policy statement explaining how established consumer protection principles apply to different advertising formats, including “native” ads that look like surrounding non-advertising content. In the Enforcement Policy Statement on Deceptively Formatted Advertisements, the Commission lays out the general principles the Commission considers in determining whether any particular ad format is deceptive and violates the … Read More

Reserve Requirement – Regulation D

The Federal Reserve Board amended Regulation D (Reserve Requirements for Depository Institutions) to reflect annual indexing and the low reserve tranche for 2016. The new low reserve threshold will apply to the fourteen-day reserve maintenance period that begins January 21, 2016. For institutions that report deposit data weekly, this maintenance period corresponds to the fourteen-day computation period that begins December … Read More