Proposed Payday Loan Rule – Part 2

The CFPB released its proposed Payday, Vehicle Title, and Certain High-Cost Installment Loans rule on June 2, in coordination with a field hearing on these small-dollar loans.  The 1333 page proposal aims to end payday debt traps, where borrowers seeking a short-term cash fix are saddled with loans they cannot afford and sink into long-term debt. Because of the scope … Read More

Proposed Payday Loan Rule – Part 1

The CFPB released its Proposed Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule on June 2, in coordination with a field hearing on these small-dollar loans.  The 1333 page proposal aims to end payday debt traps, where borrowers seeking a short-term cash fix are saddled with loans they cannot afford and sink into long-term debt. Because of the scope … Read More

CFPB Spring 2016 Rulemaking Agenda

The CFPB’s Spring 2016 Agenda has been published, and it looks like we may have a busy summer.  Compliance folks may want to get some sleep this weekend, because it may be your last chance.  Of the rules on the list, the following may have impact on credit unions. In the Prerule Stage: Business Lending Data (Regulation B) Section 1071 … Read More

Oregon – Semi-Annual Escrow Rate Adjustment

ORS 86.245 requires that Oregon State lenders who require security protection in connection with a real estate loan to pay interest on funds in an escrow account of at least the discount rate.  The rate is adjusted semiannually, and calculated on May 15 and November 15, and covers the following six-month period.  The discount rate is calculated by the most recent … Read More

Quickies 4/13/16

NCUA posts report on serving the credit-invisible “Serving the Credit-Invisible,” a new report posted by the NCUA, explains how credit unions can build loan programs based on sound underwriting, appropriate risk management, loan monitoring and staff training that can help them reach this underserved population. The report details how to evaluate a loan applicant who is “credit-invisible” and describes best … Read More

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

SCRA Foreclosure Protection Relapses to 90 days – UPDATED

UPDATED On March 31, President Obama signed into law the “Foreclosure Relief and Extension of Servicemembers Act of 2015,” extending the sunset date to December 31, 2017.  Credit union’s SCRA Notices should (again) reflect one-year, rather than 90 days.   The Service Members Civil Relief Act provides protection for service members from foreclosure for a period of time after the end … Read More

Rulemaking on Amendments to the Member Business Loan Rule

The DCU released Bulletin B-16-06, announcing that they intend to modernize the state MBL rule (Chapter 208-406 WAC) and provide similar authority as authorized for federal chartered credit unions. Rulemaking will begin in April, with meetings held over the next several months.  The tentative schedule includes meetings through August. You can attend rulemaking in person or by teleconference.  The DCU … 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