NAFCU Compliance Blog

Updated Search Bar on the NAFCU Compliance Blog

Written by Steve Van Beek

Given the fast paced-nature of the regulatory changes, we thought it would be a good idea to slow down on Friday and introduce a revamped tool to help find those past blog posts or regulatory changes that you need to now implement.  

Updated Search Function.  We've made a slight change to the NAFCU Compliance Blog webpage that allows for much greater search capabilities.  The search bar now provides a more robust way to find past blog posts on the "Equal Housing Lender" poster or "adverse action notices."    

How to Use.  Below is a quick tutorial on using the search function.

• Go to the blog's main page - www.nafcucomplianceblog.com - and look to the left-hand side for the new search bar.      
• Type in your search (using quotation marks provides more specific results - such as "fair lending").
• View your results directly in the NAFCU Compliance Blog.
• The search results default to showing the Best Match.  If you want to sort by date, click the link for "Most Recent" just below the main heading.  

If you have a few minutes, try out a couple of sample searches to learn how it works.  If you have other tips, be sure to share as well.  For additional tips on using the NAFCU Compliance Blog as a resource tool, check out this blog post.  

Have a great weekend!

Compliance Officer Skills & 7 Compliance Rules for Non-Compliance Managers

Written by Steve Van Beek

Today is Compliance Officer Skills day at NAFCU's Regulatory Compliance School.  We'll be talking about:

• The Role of the Compliance Officer; 
• How to Conduct Research; 
• Dealing with Outside Counsel;
• How to Write Effectively;
• Policies and Procedures Writing; and 
• Vendor Management.

But, not everyone is a compliance officer or has responsibilities in all of these areas.  

Well, Anthony Demangone had an outstanding blog post at the Musings from the CU Suite blog which highlights his "7 Compliance Rules for Non-Compliance Managers."  I couldn't dream of writing as well as Anthony, so I'll just give you the 7 rules plus an 8th added by a commenter and pass you along to Anthony's post.

1. You are regulated.
2. NCUA writes most of this stuff down.
3. NCUA wears two hats.
4. NCUA isn't always right.
5. It's not just regulations.
6. Ask for help.
7. Read.
8. Bonus: Regulations flow from laws (written by Congress - enough said).

If you are interested, anyone can subscribe to the Musings from the CU Suite blog (which is published a couple of times a week).   

Use the Blog as a Resource Tool; Speed Trap

Written by Steve Van Beek

We know a majority of the daily blog readers receive the daily blog postings via email delivery.  However, don't forget about using the blog as a resource tool as well.  We all remember we saw a certain blog post - but can we find it when we need to share with a colleague?  

Here are three quick ways to find past blog postings on particular topics.

• Use the Blog's Search Function.  On the blog's main page, there is a search box in the upper-left corner which allows you to search for specific terms in past blog postings.  One of the drawbacks is the search results are by relevance rather than being listed chronologically.  So, if you are looking for the latest on Richard Cordray at the CFPB you might want to follow one of the other options below.

• View the Blogs Archives.  Each blog post that we do is archived.  The blog archives allow you to pinpoint a particular blog post - if you know the date of the post.  Perhaps you printed out the January 30, 2012 blog post on the Network Exclusivity Requirements from the Durbin Amendment but you want to find the original so that you can access the hyperlinks.  Using the Archives allows you to find blog posts by date which will allow you to find all the January 2012 blog posts.  Also very useful if you were out of the office for a period of time and want to play catch-up.

• Browse Blog Postings by Category.  Each day we attach "tags" or "categories" to our blog posts.  These tags allow you to view blog postings by topic.  You can find our various categories on the right-hand side of the blog's main page (just below the legal disclaimer).  If you are looking for the latest blog posts on the ADA or Remittances, browsing by category is a great starting point.    

For example, today's blog post includes tags of "Research," "Weblogs,""Meta - Blog," and "Married Life."

***

It has been over 100 days of marriage for me and my beautiful wife.  We've kept pretty busy but it has been a fun time with new experiences - like "joint" expenses.  I use the term "joint" for reasons described below.

A couple of weeks after the holidays we received an envelope in the mail from:  Metropolitan Police Department, District of Columbia.  The dreaded speeding ticket from DC's "Automated Speed Enforcement."  

There was just one issue: we didn't know who was driving!

While there is some discrepancy as to who is the better driver - my wife, somehow, has a perfect driving record.  I do not.  So I'm sure you could imagine the twinkle in my eye when I thought for a brief second that this was her time.

Unfortunately, it was my time....again.  The timestamp on the photo clearly pinned me as the driver.  My wife's response was immediate:  "And you're paying the ticket too!"  So much for joint expenses.... 

Have a great weekend!

New NAFCU Blog, Same Approach

Written by Anthony Demangone 

When my father dropped me off at McKean Hall for my freshman year at Penn State, I knew I wanted to be a journalist.  I quickly joined the college newspaper and started writing.  I never found stories about intrigue and politics interesting to write.  Rather, I focused on things that interested me.  

I somehow got sidetracked on my road to the Pulitzer Prize. Life happens.  But my love of writing never wore off.  That’s one of the reasons I started the NAFCU Compliance Blog back in 2007.  

But life happened…again.   When I took on the role of NAFCU COO, I handed off this blog to Steve’s capable hands.  

Well, the addiction has overtaken me yet again.  As Steve mentioned a few weeks ago, I’ve started a new blog – Musings from the CU Suite.  What’s the new angle?  Work and management are tough.  But there’s a ton of good information out there about how to be better at both.  My new blog will attempt to bring the best of all of that to you.  

I hope you consider wandering over to sign up for the blog.  It would be great to have you join the conversation.

Now, I did write along those lines a wee bit back in the day.  Here are some of those old posts, which I hope you find useful.  

• Just how did my view of compliance change now that I’m NAFCU’s COO?
• A good compliance officer should try to read the tea leaves.
• In an age of Google, Facebook, Twitter, and iPads, don’t forget the research power of picking up the phone. 
• The art of making decisions when you are “off the grid.”
• My ode to compliance officers.  

Have a great week, guys.  

NCUA's New Website; Compliance Hot Topics Webinar

Written by Steve Van Beek

It is amazing how a website change can extend the time it takes to research a compliance issue.  NCUA's website change not only changed the links to existing pages - such as Opinion Letters and Letters to Credit Unions - but it also seems to have impacted an already rough search process.

It is especially frustrating when you know a legal opinion letter exists and you can't find it.  However, there is a way to bypass NCUA's search engine (or any website's) and use Google instead.

Try searching for "site:ncua.gov foreclosed property" and you will find NCUA's 2008 Letter to Credit Unions on Holding Foreclosed Properties.

***

On December 15, 2011, the Philadelphia Federal Reserve's Consumer Compliance Outlook will host a free webinar on Consumer Compliance Hot Topics.  While there is not a listing of topics, these webinars are pretty good (and the price is right!)    

Tracking Federal Legislation on the Web

Written by Jillian Pevo, Associate Director of Legislative Affairs

Let me preface this by saying it was Steve’s idea for me to walk his faithful readers through the best ways to track different pieces of legislation online. So, if you find this post boring, you know who to blame. To spice things up let’s first look at the origins of the Internet (at least according to some), and the long history politicians apparently have with this wonderful research tool.

In all seriousness, these days there are a lot of resources on the Web that can be very helpful in checking up on the legislative goals of your Representative and Senators. The most encompassing and up-to-date legislative information tends to be on the "Thomas" site maintained by the Library of Congress. There are several ways to conduct an inquiry here.

For example, if you want to read the text of the legislation introduced by Representative Ed Royce to raise the credit union member business lending cap, or see if your own Representative has signed on as a cosponsor, click “search by bill number” and enter H.R. 1418. A bill originating in the House of Representatives is designated by the letters “H.R.” followed by a number that it retains throughout all its parliamentary stages. Bills introduced in the Senate begin with an “S.” After you plug in H.R. 1418, you can see all actions taken on the bill including the recent subcommittee hearing, how many members are cosponsoring the bill and who those members are. If you didn’t know the bill number, you could have just gone under “browse bills by sponsor” and selected Ed Royce. This would give you a bucket list of every single bill Representative Royce has introduced this Congress. Thomas is a quick and easy way to gather baseline information about what issues members of Congress care about.

From the Thomas site, you can also gain access to the Congressional Record which each day updates the public on every detail of the previous day’s legislative work. Every bill introduced, every member added as a cosponsor, every amendment filed, every roll call vote taken – you name it, it’s in here.  There is also a lot of information found on the House.gov and Senate.gov websites about members and committees.

That’s the basics, but you are always welcome to call our Legislative team at NAFCU who can help answer questions and give you more up-to-date information on how various issues are shaping up on the Congressional front. Most of us have worked on Capitol Hill and we all enjoy connecting our credit union members with what’s going on “Inside the Beltway.”

I’m so appreciative that I could be a guest writer on this blog – as they say, always a bridesmaid never the bride! I’ll leave that to Steve.  :)     

Electronic Code of Federal Regulations

Written by Steve Van Beek

With the creation of a new financial regulator, comes the requirement to track and research new regulations.

One of my favorite starting research points is the main Electronic Code of Federal Regulations page.

What is the e-CFR?  

"The Electronic Code of Federal Regulations (e-CFR) is a currently updated version of the Code of Federal Regulations (CFR). It is not an official legal edition of the CFR. The e-CFR is an editorial compilation of CFR material and Federal Register amendments produced by the National Archives and Records Administration's Office of the Federal Register (OFR) and the Government Printing Office. The OFR updates the material in the e-CFR on a daily basis." 

This main page provides the ability to search federal regulations by Title (everyones' favorite hobby, right?)  The majority of the regulations impacting credit unions are found in Title 12 (Banks and Banking) of the Code of Federal Regulations.

For example, the Federal Reserve's regulations are in the 200's (such as Reg E - 12 CFR 205 or Reg Z - 12 CFR 226).  NCUA's regulations are in the 700's (such as Truth in Savings - 12 CFR 707 or Member Business Loans - 12 CFR 723).  

And - Title 12 is also the location of the 1000's series featuring the Consumer Financial Protection Bureau's regulations. 

***

This also brings up an interesting situation.  The Federal Reserve "owned" Reg Z and had regulatory authority over it - which is why Reg Z is in the Federal Reserve's section under 12 CFR 226.  Now that the CFPB has regulatory authority over the consumer regulations (such as Reg Z) - will the CFPB make changes and bring these regulations under the 1000 series?  

We haven't heard any indication either way on this - but if the CFPB does move the regulations over they would be located in the 12 CFR 1000 section of the Code of Federal Regulations.  

The Role of Comment Letters

Written by Steve Van Beek

I hope everyone had a great holiday weekend and the chance to spend time with family and friends while remembering those who made the ultimate sacrifice for our country.  

***

Unfortunately, the summer regulatory season is about to heat up.  The pace and scope of potential new regulations is frightening.  Another variable coming into play is the July 21, 2011 transfer of powers to the Consumer Financial Protection Bureau (CFPB).  

Comment Letters.  One of the greatest tools that credit unions have is the ability to comment on proposed regulations.  Regulatory agencies must follow "notice and comment" rulemaking for the majority of their new requirements (as opposed to guidance documents which can simply be released by the agencies as they do not carry the force of law).

NCUA Chairman Matz recently released a press release and video on the importance of credit union comment letters.  Chairman Matz also gave advice on how to write an effective comment letter.

Now, you may be thinking:  We cannot even keep up with the existing final regulations, how can we keep track of proposals and find the time to write comment letters?

Valid point.  This is an understandable concern for most credit unions - especially small credit unions.  However, I would argue that input during the rulemaking process can help ease the compliance burden of final regulations.  Before a rule is finalized is the best time for credit unions to ask for clarifications and ask the regulatory agencies to elaborate on their expectations.  

NAFCU Members:  Our Regulatory Affaris team releases Regulatory Alerts on proposed regulations and you can submit your comments directly to NAFCU in addition to (or in lieu of) sending your comments directly to the agency. 

***

We will have more on comment letters in the future as their role will be crucial in communications with the CFPB which will have broad powers to regulate numerous industries - including credit unions - at the same time.   

The Federal Register

Posted by Anthony Demangone

Regulations are fine and dandy, but the Federal Register often is the bee's knees.  Now, that statement seems to imply that things that are the bee's knees are better than those that are fine and dandy.  I have no idea if that's the case. But I do know that the Federal Register is a huge asset for compliance officers.  This blog post from the past says why.

***

I think we've all read a regulation at least once that caused us to scratch our heads.  We may ask why a regulation was put in place.  Or, we may have a situation that is not clearly discussed in the regulation.  Here's a good tip to help you find some extra guidance.

1. Find the regulation that you are researching using GPO's electronic code of federal regulations page.  I use this even for NCUA's regulations.  I'll explain why below.  Find the regulation that you are researching.

2. Scroll to the bottom of the regulation you are researching.  As an example, I've picked NCUA's Insurance/Fidelity Bond Reg.  12 C.F.R. Part 713.5.  Take a look at it here.

3. At the bottom of many sections, you'll see a Federal Register notation.  At the bottom of the reg I selected, you see this: [64 FR 28720, May 27, 1999, as amended at 70 FR 61716, Oct. 26, 2005].  This is a gold mine of information.  This tells you the dates the reg was amended and the actual Federal Register that houses the final rule.  The regs on www.ncua.gov don't have that information.

4. Here's a link to the Federal Register Page.  If you scroll down, you'll see the "browse the table of contents from past issues."  Look back at number 3 above.  The reg in question was amended most recently on October 26, 2005.  So, let's select 2005 from the drop down menu to browse through.  If you did it correctly, you should see this.  From there, you should be able to find the October 26 issue, which is here.

5. Scroll down.  Under "National Credit Union Administration" you'll find the final rule.  Which is here. 

Et voila!  You have the final rule that most recently amended this section.  This can come in handy, as the agency will always explain the purpose of the rule, give background information, etc.  And they will usually tell you the last time that they amended the rule if you want to keep winding yourself back.  I've used this trick quite often. 

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And Oldie But Goodie

Posted by Anthony Demangone

In an age of Twitter, Facebook, blogs, the internet, Google, Four Square, Blackberries, Androids, iPads, the "Cloud," and email, it can be very easy to overlook one of the most effective technologies for compliance research.

The telephone.  Here's an old blog post about this old, but useful technology.

***

I love to do research.  The challenge.  The riddle.  Finding an answer can be a rewarding experience.  But we don't always have all the time in the world, and guidance doesn't always answer every question. 

Never forget to ask for help.  Example?  You have a question regarding how to escheat funds in your state.  After looking at your guidance documents, you still have the question.  Pick up the phone and call your state's office of abandoned property. Chances are good that there's a person in that office who has answered your question dozens of times...this year. 

A quick call can save time and frustration.  You can't be expected to know everything!