IOLTA and Other Similar Escrow Accounts Share Insurance

The NCUA’s rule codifies the insurance coverage pursuant to the Insurance Parity Act for IOLTAs and other accounts that satisfy the definition of “other similar escrow accounts.”  The Credit Union Share Insurance Fund Parity Act was passed in December 2014, and provides coverage to IOLTA and “other similar escrow accounts.”  Credit unions raised many questions about what qualifies as an … Read More

CFPB releases rural and underserved areas tool

The Consumer Financial Protection Bureau has released a new online tool to help creditors determine which properties are located in a rural or underserved area. The tool aids in determining the exemption for requiring escrow accounts for higher-priced mortgages. Regulation Z provides that if “During any of the three preceding calendar years, the creditor extended more than 50 percent of … Read More

Amendments to the Telemarketing Sales Rule

The amendments include prohibiting four specific payments methods used by telemarketers and changes related to the National Do Not Call Registry. The prohibited payment methods include: Cash-to-Cash money transfers – where cash is received from one person and transferred to another person in a different location and received in cash. This includes services like Moneygram or Western Union. Cash reload … Read More

Annual Privacy Notice Requirement

Disclosure of Nonpublic Personal Information 15 USC 94 On December 4, 2015, President Obama signed the “Fixing America’s Surface Transportation Act” (“FAST Act”) which provides relief to financial institutions regarding providing an annual privacy notice. The Gramm-Leach-Bliley Act (GLB Act or GLBA) is a statute that, among other things, governs the privacy and sharing of nonpublic personal information.  Regulation P … Read More

Final Rule on the Frequency of Asset Assessment Fees (RCW 34.05.325(6))

Starting January 1, 2016, Washington State asset assessment fees will be collected on a semi-annual basis, rather than the current quarterly basis.  This will bring the collection of State assessment fees closer to the Federal assessment fees practice.  The annual aggregate amount will not change. http://www.dfi.wa.gov/sites/default/files/credit-unions/bulletins/B-15-15.pdf

CFPB Consumer Credit Card Market Report

The CFPB released its report on the consumer credit card market.  Essentially, this is 300 pages of the Bureau tooting their own horn regarding improvements in the credit card market in the wake of the CARD Act.  The report covers credit card agreement terms, issuer practices, adequacy of protections against unfair or deceptive acts or practices relating to credit cards, … Read More

Home Mortgage Disclosure Act (Regulation C) Small Entity Compliance Guide

On October 13, 2015, the CFPB amended Regulation C expanding the reporting requirements.  Included in the changes were the definitions of covered institutions and covered transactions, changes to public requests, submission of reports, along with new and modified data fields – for a total of 48 fields. The CFPB released its Compliance Guide that includes the key changes and effective … Read More

FTC Holder in Due Course Rule Request for Comment

The Federal Trade Commission (FTC) is seeking input in review of its Holder in Due Course Rule (16 CFR 433) as part of its systematic review of all current FTC rules and guides. The Holder in Due Course Rule, formally titled “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses”, preserves consumers’ right to assert the same legal claims … Read More

Update to OFAC FAQs Regarding Cuba Travel-Related Transactions

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has updated its Frequently Asked Questions regarding Cuba travel-related transactions by U.S. financial institutions.  Question #52 has been added: Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions? No. A financial institution may rely on U.S. travelers to provide their certifications … Read More

No Adjustments for HPML or TILA Exemption Thresholds

No Adjustment for Appraisals for Higher-Priced Mortgage Loans Exemption Threshold Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies’ regulations. The Agencies (the OCC, the Board, the Bureau, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA)) issued joint … Read More