What to watch in compliance

Originally published in CU Insight. By Brandy Bruyere, NCCO, Vice President of Regulatory Compliance, NAFCU

NAFCU’s compliance team works daily to offer award-winning compliance assistance and services to all federally insured credit unions, helping keep compliance teams up to date on regulatory hot topics. One of the signature resources that we offer is the Compliance Blog, which covers hot-button credit union industry issues.

As we enter the second half of the year, NAFCU’s compliance team is here with the latest rundown of the most popular blog posts to date.

1. NCUA Priorities

At the beginning of the year, NAFCU Regulatory Compliance Counsel Reginald Watson outlined the NCUA’s supervisory priorities and shared what credit unions can expect in 2019 regarding examinations coming down the pike. The blog focuses on BSA compliance, adverse action notices, overdrafts, the Home Mortgage Disclosure Act, cybersecurity and the new current expected credit losses (CECL) accounting standard. Many of these regulations are seeing significant developments at their respective regulatory agencies and we will keep credit unions updated on further developments.

2. Overdraft

Overdraft compliance and legal risk continues to be a challenging issue for the industry. Before the CFPB announced its review of the rule, NAFCU Senior Regulatory Compliance Counsel Elizabeth LaBerge answered questions on overdraft policies and how credit unions can establish policies that obligate members with negative balances to repay a negative balance. LaBerge also discussed Regulation Z disclosure requirements as they relate to overdraft policies.

3. ACH / Electronic Payments

Can credit unions place a hold on ACH debit transfers that are used to fund the online opening of a checking account? In a recent blog, NAFCU Regulatory Compliance Counsel David Park explained what constitutes an electronic payment under Regulation CC and what transfers are or are not subject to the next-day availability rules.

4. Private Education Loans

As student loans face more scrutiny, NAFCU Regulatory Compliance Counsel Loran Jackson explained in a recent blog that any credit provider that makes a private education loan (PEL) – which is defined as a loan extended to a consumer in whole or in part for postsecondary education expenses – is a private education lender. She further provided analysis on Regulation Z’s student loan rule as well as the CFPB’s Education Loan Servicing Exam Manual.

5. Change-in-Term Notices

Recently, there have been several inquiries related to change-in-term notices for checking and savings accounts. NAFCU Regulatory Compliance Specialist Alma Calcano created a chart outlining regulations for these notices. She noted that this is part of a three-blog series that will help credit unions navigate regulations governing change-in-term requirements.

To read more by the NAFCU Compliance Team, see our blog.