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PALs II, HMDA, more to be covered in NCUA webinar
The NCUA will host a webinar Nov. 19 to provide credit unions with information on a range of consumer protection topics, including the agency's expanded payday alternative loans (PALs II) program. Registration is now open for the event scheduled to begin at 2 p.m. Eastern.
Last month, the NCUA board passed a final rule to establish PALs II in a 2-1 vote. NAFCU had previously recommended more flexible parameters so that credit unions can develop a PALs option that best meets their members' needs and continues to urge the CFPB to expand its PALs safe harbor to ensure it covers all loan options.
Under the new rule, federal credit unions (FCUs) may offer PALs II loans for any amount up to $2,000 and are able to make a loan immediately upon the borrower establishing membership. Additionally, FCUs are restricted to offering only one type of PALs loan to a member at any given time.
During the webinar, staff from the NCUA's Office of Consumer Financial Protection will also cover:
- Regulation B adverse action notices, which is among credit unions' top compliance challenges and has been frequently addressed in NAFCU's Compliance Blog;
- findings from reviews of Home Mortgage Disclosure Act loan and application registers (the CFPB is currently working to lessen the law's reporting burden while still addressing discriminatory lending); and
- elder financial abuse, which has been a focus of federal agencies.
Credit unions may submit questions ahead of the webinar by email with "Fair Lending and Consumer Compliance Regulator Update" as the subject line, or live via the agency's Twitter. The webinar will be archived online approximately three weeks after the event.