Operations in Rural Areas Under the Truth in Lending Act (Regulation Z); Interim Final Rule

In response to the Helping Expand Lending Practices in Rural Communities (HELP) Act, the CFPB issued an Interim Final Rule, which expands eligibility for the special provisions allowing balloon-payment qualified mortgages and balloon-payment high-cost mortgages and for the escrow exemption. Pursuant to the Interim Final Rule, a small creditor is no longer required to extend more than 50 percent of … Read More

Final Member Business Loan Rule

The Final MBL Rule provides credit unions making business loans with greater flexibility and more autonomy, shifting the rule’s focus from the current prescriptive approach to a more principles-based methodology that emphasizes sound risk management practices for business lending. The final Rule eliminates most of the prescriptive lending limits and their corresponding waiver provisions. The also distinguishes the policy and … 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

HMDA File Specifications

The CFPB has posted HMDA file specifications for 2017 and 2018. For data collected in 2016, credit unions should follow the FFIEC’s file specifications. For data collected in 2017 and data collected in or after 2018, credit unions should follow the CFPB’s file specifications. _  _  _ As a reminder, The NCUA released a Regulatory Alert reminding credit unions of … Read More

In the legislature

Washington and Oregon’s legislature is back in session after the holidays, and both states have a couple bills that, if enacted, would have impact on credit unions. In Washington, Senate Bill 5635 would repeal Washington’s Power of Attorney Act and replace it with a modified Uniform Power of Attorney Act – which 18 states have currently adopted.  This bill is … 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

HMDA Data Collection Requirements for 2016

NCUA Letter 16-RA-01 The NCUA released a Regulatory Alert reminding credit unions of the requirement to collect and report HMDA data during 2016. The credit union must collect HMDA data during 2016 if: Your credit union’s total assets as of December 31, 2015, exceed $44 million; Your credit union had a home or branch office in a Metropolitan Statistical Area … 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

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