Fair Credit Reporting Act Disclosures and Indirect Automobile Lending

Credit unions should either retain copies of provided Risk Based Pricing Notices in loan files or perform due diligence on automobile dealers to confirm they are providing the notices in a timely manner to the credit union’s indirect borrowers. The Division of Credit Unions released Bulletin B-16-04 providing guidance for state-chartered credit unions on indirect lending compliance requirements – specifically … Read More

Submission Requirements for Credit Card Issuers

Last year the CFPB suspended the requirement to submit credit card agreements to the Bureau.  This temporary suspension is expiring at the end of April, and credit unions that have more than 10,000 credit card accounts will need to begin submitting their agreements quarterly, with the first due to the Bureau on or before May 2, 2016. The submittal suspension … Read More

Complying with Recent Changes to the Military Lending Act

NCUA released Regulatory Alert 16-RA-04 providing guidance on complying with the changes to the Military Lending Act requirements. The guidance, Complying with Recent Changes to the Military Lending Act Regulation, provides a good overview of the changes, and the steps that the credit union will have to take. Along with an overview of the changes, the guidance includes how to … Read More

Military Lending Act Covered Borrower Database Access

If the credit union wishes to use the DMDC (Defense Manpower Data Center) direct connection capability (under development) to identify borrowers covered under the MLA (Military Lending Act) should email a request to the DMDC at dodhra.dodc-mb.dmdc.mbx.mla@mail.mil, by February 1. The MLA places certain protections over covered borrowers, including a cap on annual percentage rates, so credit unions need to … Read More

Military Lending Act… continued

We blogged about the new requirements for the Military Lending Act (MLA) previously.  In summary, the final rule broadens the MLA protections by expanding the range of covered loans, defining a covered borrower, adding more components to the MAPR, placing restrictions on imposing other limitations, and requiring a statement of the MAPR Disclosure.  Compliance with the changes is required by … Read More

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

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

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

NCUA Civil Money Penalties Inflation Adjustment

The NCUA adjusted civil money penalties for violations within its jurisdiction to account for inflation. Federal agencies must adjust civil money penalties at least once every four years to account for inflation. Dates: Effective:  09/23/2015 Recommended Actions: The adjustment should not impact the operations of the credit union, but the credit union should be aware of the increase penalties for … Read More

Regulation Z Annual Loan Threshold Adjustments

Dates: Effective January 1, 2016 Summary: The CFPB announced the 2016 thresholds for Regulation Z provisions governed by the CARD Act, the Home Ownership and Equity Protection Act and the Dodd-Frank Act. Recommended Actions: Credit unions should review the new limits and incorporate them into their policies and procedures. Detailed Analysis: CARD Act Annual Adjustments: The safe harbor penalty fees … Read More