NCUA Letter 16-CU-11 Member Business Loans Guidance

NCUA released guidance on the new member business lending (MBL) rules, which go into effect in January.  The guidance is incorporated into the NCUA’s new online Examiner’s Guide. Letter to credit unions 16-CU-11 states “Guidance that elaborates on the principles of sound commercial lending reflected in revised Part 723, along with those addressing the statutory cap on member business loans, … Read More

Change to Secretary of State Corporate Formation Documents

In case you missed it… As a result of a change in Washington’s Business Code (RCW 23.95), the DFI sent an e-mail to Washington State credit union CEOs regarding corporate formation documents filed with the Secretary of State’s office. The email was: Dear CEOs, New laws (RCW 23.95) will soon take effect with regard to the Office of Secretary of … Read More

Rural or Underserved Counties

The CFPB has published a list of counties that it determined to be “rural” or “rural or underserved” during 2016 for purposes of applying certain regulatory provisions related to mortgage loans during 2017. Mortgage rules that refer to these lists are: Escrow requirements under TILA/Regulation Z Ability to repay and qualified mortgage standards under TILA/Regulation Z High-cost mortgage and homeownership … Read More

2017 HMDA Data Submission Changes

The CFPB has posted information on changes to the submission process listed in the Filing Instructions Guide for HMDA data collected in 2017. Beginning with the HMDA data collected in 2017, filers will submit their HMDA data to the CFPB using a web interface referred to as the HMDA Platform. HMDA filers will interact directly with the HMDA Platform to file their HMDA data. … Read More

Proposed Private Flood Insurance Rule

The Banking Brotherhood (FRB, FDIC, NCUA, OCC, and Farm Credit Administration) are requesting comment on a joint notice of proposed rulemaking to implement provisions of the Biggert-Waters Flood Insurance Reform Act (Biggert-Waters Act) that require regulated lending institutions to accept certain private flood insurance policies in addition to policies made available by the Federal Emergency Management Agency (FEMA). The federal flood insurance statutes require regulated … Read More

Prepaid Account Regulations

On October 5, the CFPB released its final rule for prepaid accounts under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z). The rule, which is nearly 1700 pages, provides sweeping consumer protections that impact all aspects of the prepaid industry. The rule, which generally becomes effective on October 1, 2017, will require prepaid providers … Read More

NCUA Letter to Credit Unions 16-CU-07 Military Lending Act Examination

Starting October 3, 2016, credit unions must comply with the amended regulation the Department of Defense issued implementing the Military Lending Act. With this amended rule, NCUA intends to take the same examination approach used with the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule in 2015 and its Qualified Mortgage and Ability-to-Repay rules in 2014. NCUA examiners are instructed … Read More

DCU Bulletin B-16-18

On October 12, 2016, the DCU released Bulletin B-16-18, Indirect Lending and Credit Tier Exceptions.  The Bulletin includes credit risk concerns and fair lending risks. The Bulletin addresses concerns with indirect lending procedures and practices which allow underwriters to bump a vehicle loan applicant to a higher credit tier and interest rate that is more favorable to the applicant when … Read More

CFPB Notice of Public List of Companies Offering Free Credit Score

On October 5, the CFPB released a notice that they intend to publish a list of companies that provide free access to credit scores. Financial institutions, credit card issues, and other companies may offer consumers free access to a credit score giving consumers an important tool to manage their financial lives.  The Office of Financial Education of the CFPB would … Read More

DCU Bulletin B-16-16 Practice of Using Power of Attorney for Vehicle Loans

On September 28, the DCU released Bulletin B-16-16 regarding the use of Power of Attorneys for vehicle loans.  The DOL will now require a separate power of attorney to be signed by the member, not an employee of the credit union, using general power of attorney language contained within consumer loan agreements. Practice of Using Power of Attorney for Vehicle … Read More