Newsroom

June 29, 2015

Input due to NAFCU on NCUA IOLTA proposal

NAFCU members have until close of business today to submit their input to the association's official comment letter on NCUA's proposal for implementing last year's Federal Credit Union Act revisions ensuring parity in coverage of Interest on Lawyer Trust Accounts and similar "escrow" accounts.

The revisions were made through the NAFCU-supported Credit Union Share Insurance Fund Parity Act. It directs NCUA to provide enhanced, pass-through share insurance for IOLTAs and similar escrows. NCUA is seeking comments on what other types of escrow accounts should be included within the scope of the rule.

NAFCU is accepting members' input until June 29; comments are due to NCUA July 13.

Also ahead:

  • Student loan servicing: Members' input is due July 1 to NAFCU on CFPB's joint effort with Treasury and the Education Department to identify initiatives to strengthen the student loan servicing market. CFPB has a request for information out on common industry practices related to loan repayment, applicability of consumer protections from other consumer financial protection markets; and impact of limited available data on student loan servicing. CFPB will accept comments until July 13.
  • Payday lending: July 15 is the deadline for members' input to NAFCU on CFPB's current review of payday lending issues. The bureau has not issued a proposed rule but is considering one to address payday, vehicle title and similar types of loans. Most notably for credit unions, CFPB is considering imposing several requirements that would limit a federal credit union's ability to offer payday alternative loans (the short-term, small-amount loans authorized by NCUA).