Aug. 31, 2012 – NAFCU-member credit unions looking for an overview of NCUA’s revised guidance on multi-featured open-end lending, released in July, can find it in the September issue of NAFCU's Compliance Monitor.
The Monitor notes that NCUA issued the revised guidance following requests from credit unions about more clarity on the issue. The Federal Reserve Board previously regulated such activity under Regulation Z, but that authority was transferred to the Consumer Financial Protection Bureau last year. The CFPB has republished the Fed’s rule and staff interpretation as its own. That interim rule includes the Fed’s 2009 revisions on open-end lending as well as the 2010 revisions under the Credit CARD Act.
The revised guidance reinforces that, in a multi-featured, open-end lending program, a credit union may not conduct new underwriting for individual requests for new advances. Verification of credit history, debt load and other factors can be reviewed on a periodic or ad hoc basis – as must be disclosed at account opening – but those activities cannot be triggered by new requests for advances.
The September issue of the Monitor also examines the CFPB’s public enforcement action against Capital One Bank’s marketing of credit card “add-on products” and NCUA’s proposed rule on maintaining access to emergency liquidity. Credit unions that want more information about NCUA’s emergency liquidity proposal are also encouraged to view the agency’s webinar on the subject, which also includes a look at changes to the Central Liquidity Facility. The webinar is now available to view on NCUA’s website. (link)
NAFCU members can download the September Compliance Monitor here (login required). For a monthly email about the latest Compliance Monitor, send a request to compliance@nafcu.org.
NAFCU is also recommending that credit union professionals participate in the association’s Sept. 5 webcast, “Inside the CFPB’s Mortgage Proposals.” The webcast, which will be led by NAFCU Director of Regulatory Compliance Steve Van Beek, Esq., NCCO, will focus on the bureau's numerous changes to the mortgage lending process, including an overview of proposed rules that would revise mortgage servicing requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act. For more information or to register, click here.