Newsroom

Back to the Newsroom
December 19, 2017

NAFCU asks St. Louis Fed to clarify e-sig acceptance

NAFCU's Andrew Morris in a letter yesterday asked the Federal Reserve Bank of St. Louis to develop and adopt guidelines related to its Borrower-in-Custody (BIC) program in order to allow electronic signatures on auto loans as pledged collateral.

"Credit unions are experienced lenders that know how to create legally binding and enforceable agreements utilizing electronic records and signatures," wrote Morris, NAFCU's regulatory affairs counsel. "The Federal Reserve Bank of St. Louis should permit acceptance of e-signed auto loans as pledged collateral under BIC program guidelines, provided that credit unions can demonstrate that their electronic lending platform produces records which preserve the marketability of the loan."

Morris argued that the lack of clear guidance on the issue "directly impacts credit unions' access to liquidity in a service area that contains 11 million members." He also noted that perfection of security interests on electronically signed auto loans would not be a burden on the St. Louis Federal Reserve.

In order to develop its guidelines, Morris recommended the St. Louis Federal Reserve review impediments to e-lending that might exist within its service area and adopt procedures for assessing the marketability of e-signed loans.

Related Resources

Complete NAFCU Credit Union Compliance Advertising Guide

Guides
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market.  Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public

Gallagher Executive Compensation and Benefits Survey

preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically.   [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters.  [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public

The Evolving Role of the CISO in Credit Unions

Cybersecurity

preferred partner
DefenseStorm
Podcast

AI in Action: Redefining Disaster Preparedness and Financial Security

Strategy

preferred partner
Allied Solutions
Blog Post