Compliance Blog

Hey NAFCU members: the NAFCU Book of Answers has been updated and is available here.   (NAFCU member log-in needed.)

For you non-NAFCU people, here's a snippet from the Book of Answers.

Question: If a member has a direct deposit into a share account and funds are then automatically dispersed into other of his/her accounts, do these dispersals count as part of the allowable monthly transactions under Regulation D?

Answer: No. According to the Federal Reserve, “(w)here a deposit is made directly to one account but within a very short time routine disbursements of a portion of a payroll deposit are made to family member accounts or other accounts of the depositor, such disbursements are an element of the deposit transaction and are not to be regarded as transfers.” Where credit unions and members have made agreements for these allocations of a direct deposit, such transfers do not make the account in which the payroll funds have been initially deposited a transaction account. 2-302.8, Q15, Federal Reserve Regulatory Service Volume I, Regulation D (Questions and Answers).

***

The Federal Reserve has bumped up the asset size exemption for HMDA reporting.  It is now $37 million, effective January 1, 2008.

"As a result, depository institutions with assets of $37 million or less as of December 31, 2007, are exempt from collecting data in 2008.  An institution’s exemption from collecting data in 2008 does not affect its responsibility to report the data it was required to collect in 2007."