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Reg rundown: A monthly roundup of CU compliance dates
NAFCU's compliance team works daily to keep credit unions' compliance teams informed of the ever-changing regulatory environment. Today, the NCUA's final rule to amend its regulations regarding capital planning and stress testing, which was approved in April, goes into effect, as well as the CFPB's amendment to fix the TILA/RESPA integrated disclosures rule's (TRID) "black hole."
Another rule approved by the NCUA in April to amend advertising statements went into effect May 25; more information is available through NAFCU's Compliance Calendar. The Compliance Calendar is just one of many award-winning services provided by NAFCU's compliance team to assist all federally-insured credit unions with compliance questions.
See below for upcoming dates and deadlines for credit union regulatory compliance requirements.
June 1: The NCUA's final capital planning and stress testing rule takes effect. The rule removes the requirement that credit unions within tiers I and II formally submit a capital plan to the NCUA by May 31 each year; these credit unions only must develop and maintain an annual capital plan that will be reviewed as part of the supervisory process. This change is in line with NAFCU's recommendation that covered credit unions' capital plans be reviewed through the supervisory process as it will allow NCUA examiners to more efficiently communicate concerns or questions regarding capital plans using a risk-based approach. The final rule also requires tier II and III credit unions to conduct their own annual stress testing, an arrangement that NAFCU had previously urged the NCUA to allow.
The final rule also removes the three-year phase-in period for tier I and II covered credit unions in favor of a strict asset-size threshold. NAFCU had requested that the NCUA define the credit union tiers in terms of complexity and financial condition as opposed to just asset size.
June 1: The CFPB's final amendment to resolve the "black hole" issue under its TRID rule goes into effect. The final amendment allows creditors to compare charges paid by or imposed on a consumer with amounts disclosed on a closing disclosure – rather than a loan estimate – to determine if the estimated closing cost was disclosed in good faith. It would also remove the four-business-day limit for providing closing disclosures but, like the current rule, would permit creditors to reset tolerances by providing a closing disclosure within three business days of receiving information sufficient to validate a reason for revision.
Prior to the fix, the TRID rule led to circumstances where creditors were unable to provide either a revised loan estimate or a corrected closing disclosure to reset tolerances; the situation was commonly referred to as a "gap" or "black hole."
July 1: This is the effective date of the Federal Reserve Board's final rule amending subparts A, C, and D as well as the official staff commentary to Regulation CC. The final rule modifies the current check collection and return requirements to reflect today’s virtually all-electronic check collection and return environment. It encourages all depositary banks to receive, and paying banks to send, returned checks electronically.
Oct. 1: The CFPB's finalized amendments to its TRID rule became effective Oct. 10, 2017, but mandatory compliance is required for applications received on or after Oct. 1. The amendments codify the bureau's previously issued informal guidance on the rule and provide additional technical clarifications. They also make adjustments to substantive issues related to tolerance provisions, recording fees and transfer taxes, cooperative units, separate disclosure forms, among others. NAFCU has various resources on the rule available here.
Jan. 1: The NCUA's risk-based capital (RBC) rule is set to go into effect. NAFCU has made progress on Capitol Hill in recent weeks to include language to delay the NCUA's RBC rule in two critical pieces of legislation.
This rule establishes a new method for computing the agency’s risk-based requirement, which includes an RBC ratio measure for complex credit unions. The final rule makes the following key changes, among others, to the agency's existing capital requirements:
- establishes a new RBC ratio for federally-insured natural person credit unions with more than $100 million in assets;
- establishes an RBC ratio of 10 percent for well-capitalized credit unions;
- requires higher minimum levels of capital for credit unions with concentrations of assets in real estate loans, commercial loans or non-current loans; and
- sets forth how, through its supervisory authority, NCUA can address a credit union that does not hold capital that is commensurate with its risks.
Download the latest NAFCU Compliance Calendar for more details.
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