Written by Jennifer Aguilar, Regulatory Compliance Counsel
Every once in a while we like to review recent news and highlight some noteworthy headlines and resources. Here are some key items from the past couple of months.
Prepaid Accounts Rule. On April 20, the CFPB announced that it has issued a final rule on the delay of the prepaid accounts rule. The final rule delays the effective date of the rule to April 1, 2018. The announcement also stated that the CFPB will take a second look at two substantive issues – digital wallets and error resolution for certain accounts. The CFPB expects to release a proposal shortly and it will be followed by a comment period.
NCUA FOM Webinar. In order to help credit unions navigate the new Field of Membership rule that went into effect on February 6, NCUA held a webinar and released a number of Q&As on the new rule. NCUA expects to have additional guidance available next month. For additional information on these resources, check out this NAFCU blog.
NCUA Video Series. NCUA's Office of Small Credit Union Initiatives has put together a number of educational videos designed to assist credit union board members. The latest video in the series was released on April 5. This new video, "Effective Board Meetings," discusses how to effectively run a board meeting. It stresses the importance of healthy discussions and asking questions in reaching decisions that ensure the safety and soundness of your credit union.
2016 Fair Lending Report. On April 14, the CFPB's Office of Fair Lending and Equal Opportunity released its 2016 Fair Lending Report. The Report covers the Office's supervisory and enforcement actions, new fair lending rules and guidance, and outreach efforts. The Office's 2017 focus will be on redlining, mortgage and student loan servicing, and small business lending.
CFPB sues Ocwen Financial Corporation. On April 20, the CFPB filed a lawsuit in the Southern District of Florida against Ocwen Financial Corporation. The 93-page complaint alleges violations of the Fair Debt Collections Practices Act, Real Estate Settlement Procedures Act, Truth in Lending Act, and Homeowners Protection Act. The CFPB alleges that, among other things, Ocwen failed to input accurate information into its system of record, serviced loans and collected on debts based on this inaccurate information, took an average of 261 days to verify information for each loan in its system, and used a fundamentally deficient system of record that directly impacted its ability to service loans. The complaint goes on to describe how these failures adversely affected borrowers, such as untimely and inaccurate periodic statements, improperly credited payments, improperly assessed fees, and foreclosure. The CFPB seeks an injunction to prevent future violations, redress for consumers, disgorgement of unlawful gains, and a civil money penalty.
HMDA. On April 13, the CFPB announced a proposed rule to amend HMDA. The proposed rule seeks to clarify the requirements of Regulation C, including key terms, establishing transition rules, and facilitating reporting the census tract of a property. Last week, NAFCU blogged on the new geocoding tool in the proposed rule. Be on the lookout for future blogs on other sections of the proposed rule.
CHOICE Act. On April 19, House Financial Services Chairman Jeb Hensarling issued a discussion draft for the new CHOICE Act. The hearing is scheduled for today at 10 a.m. EST. NAFCU's Friday blog will cover the new CHOICE Act and the hearing.
BSA Blast. The April 2017 issue of the BSA Blast is available today. (NAFCU member login required). This issue focuses on enforcement actions against Merchants Bank of California for its numerous BSA compliance violations in banking MSB customers. This edition's BSA quiz for staff training focuses on Suspicious Activity Reports and red flags for suspicious activity.
Are you not subscribed to NAFCU's BSA Blast? Just go to the publications page on NAFCU's website to update your membership subscription preferences. Don't miss another issue!
Comments