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Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act provides protection to individuals who are on full-time active military service of the United States.

Under the SCRA, while a service member is on active duty, a credit union may charge no more than six percent (6%) simple interest on loan balances incurred prior to active duty status. The SCRA clarifies this requirement by extending that limitation to the service member and his or her spouse jointly. The SCRA also clarifies that any interest in excess of 6% that otherwise would have been incurred (while on active duty) is forgiven. The SCRA also extends protections to co-debtors who may also be obligated on loans with the active duty servicemember.

In addition, the Housing and Economic Recovery Act of 2008 (HERA) provides additional protections to service members provided under the SCRA. The law maintains HERA’s stay of proceedings period of nine months.

Visit the Servicemembers Civil Relief Act topic on the Loans and Leasing channel of InfoSight to review:

  • Actions your credit union should take to ensure compliance with the SCRA
  • What your credit union should do after the Act no longer applies to a member
  • SCRA FAQs from HUD

Review the information today to help your credit union remain in compliance

 

Calif. ride-sharing law protects CU collateral

SACRAMENTO, Calif. (9/22/14)--California Gov. Jerry Brown signed legislation Thursday that will require Transportation Network Companies (TNC) such as Uber and Lyft to buy at least baseline insurance on their vehicles. The new law will address concerns held by credit unions who have been on the line for reductions in collateral value when the cars those businesses use are involved in accidents ( In the News Sept. 18).

Assembly Bill 2293, authored by Assemblywoman Susan Bonilla (D-Concord), also requires those companies to provide disclosures that outline any potential gaps in personal insurance auto-lines coverage for drivers using their own vehicles.

"While AB 2293 is a consumer protection bill, it represents much more than that," Bonilla said ( In the News ). "This measure symbolizes business flexibility, consumer affordability, political compromise and, most importantly, what true public policy should be: a collective process for all stakeholders to contribute."

Credit unions through the California and Nevada Credit Union Leagues worked closely with Bonilla on pushing forward the legislation, which was heavily opposed by the TNC companies. 

The bill also received some help from credit unions through the Leagues' "Connect for the Cause" email-alert grassroots system.

The new legislation:

  • Creates a personal insurance firewall to ensure personal insurance auto policyholders will no longer subsidize the commercial activity of TNCs, beginning July 1, 2015;
     
  • Lowers the primary insurance coverage requirements in the timeframe formerly known as "App On To Match" to $50,000/$100,000/$30,000, with excess coverage of $200,000;
     
  • Ensures oversight by the California Public Utilities Commission of TNCs, such as Uber and Lyft; and
     
  • Expedites the approval process for new TNC insurance products.

"AB 2293 sets the standard for this innovative industry, ensuring consumer protection and public safety remains a top priority," Bonilla added. "This legislation also reinforces corporate responsibility, safeguarding taxpayers from subsidizing the cost of commercial activity."

Source: CUNA News Now


Checking account screening topic of CFPB forum

WASHINGTON (9/17/14)--Checking account screening policies and practices will be the subject of a Consumer Financial Protection Bureau (CFPB) forum Oct. 8. Checking account screening is often used by financial institutions to look into a consumer's checking history before opening a new account.

According to the bureau, the event will be "a discussion on how checking account screening policies and practices impact consumers. The event will inform the dialogue around how the screening system works and how to improve the availability of information and products for consumers."

There will also be discussions about current checking account screening practices, the effect these practices have on consumers' ability to acquire and use checking account products and the availability of such products and services that meet their needs.

CFPB Director Richard Cordray will speak, and there will be presentations from consumer groups, federal and local elected officials and industry representatives.

The event will take place Oct. 8, from 8:30 a.m. to 2 p.m. (ET) at the Kellogg Conference Center at Gallaudet University. Registration is required and must be received by Oct. 2.

CFPB forum on access to checking accounts

Source: CUNA News Now


CFPB CU Advisory Council meeting set for Oct. 1 in D.C.

WASHINGTON (9/23/14)--A meeting of the Consumer Financial Protection Bureau's (CFPB) Credit Union Advisory Council will be held Oct. 1 in Washington, D.C.

The agenda features a discussion on overdrafts with Gary Stein, program manager of deposits markets, and Jesse Leary, section chief of consumer and household research and policy. Assistant Director for Consumer Response Scott Pluta will also lead a discussion of consumer complaints.

The council's function is to advise the bureau on regulating consumer financial products or services and specifically to share the unique perspectives of credit unions.

The upcoming meeting will be the first for the council in 2014. It previously met four times in 2013 and once in 2012.

The meeting will be from 3:30 to 5:30 p.m. (ET). Registration is required.

Credit Union Advisory Council meeting 

Source: CUNA News Now


Federal Reserve Does Not Plan to Revise Debit Interchange Fee Caps or Fraud Adjustment

The Federal Reserve Board (Fed) has released a report and said it does not plan to propose revisions to the Regulation II debit interchange fee standard or the fraud-prevention adjustment. The Fed said the decision is based on results of its survey of costs associated with debit card transactions, a survey it conducts every two years.

Implementing a provision of the 2010 Dodd-Frank Act, the Fed set a cap on debit interchange fees for issuers with assets of $10 billion or more at 21 cents, and allows certain other charges to cover fraud losses and fraud prevention. “Covered issuers with average ACS (authorizing, clearing, and settling) costs below the maximum interchange fee in 2013 processed over 99 percent of all reported covered transactions, the same proportion as in 2011” according to the report. Also in the report, the Fed estimates that debit-card fraud losses to all parties—merchants, cardholders, and issuers—was $1.57 billion in 2013, with an average loss of approximately 8 basis points as a share of transaction value. That was up slightly from 2011.

CUNA continues to advocate for credit unions on interchange issues and believes the debit interchange fee cap is too low and does not allow debit card issuers to cover their costs and a reasonable rate of return on their investments. We also remain concerned about the effectiveness of the small issuer exemption. We will be reviewing the report and data in greater detail.

Source: CUNA News Now


 

The Consumer Financial Protection Bureau (CFPB) is proposing changes to Regulation C to implement amendments made to the Home Mortgage Disclosure Act (HMDA) by the Dodd-Frank Act and other revisions.

Among the changes, the tests for determining which institutions are covered under HMDA would be revised:

  • Covered entities, including credit unions that trigger Reg C compliance, would be required to report HMDA data if they originate 25 covered loans other than open-end lines of credit and commercial lines of credit, in the previous calendar year.
  • Unsecured home improvement loans would no longer have to be reported.
  • All closed-end loans, open-end lines of credit and reverse mortgages secured by dwellings would be required to be reported.

The proposal will require credit unions and other covered entities to report much more information as mandated by the Dodd-Frank Act.

However, in addition to the data required under the Dodd-Frank Act, the CFPB is proposing to use its discretionary authority to require reporting on additional issues, such as the first draw amount at account opening for HELOCs.

This requirement alone could be very costly and cumbersome for credit unions to provide, and CUNA has already sent a letter to CFPB Director Richard Cordray urging the agency to exempt credit unions from this requirement.

We will be filing a detailed comment letter on the proposal before the comment period closes, and will also be addressing a number of other additional items the CFPB is proposing to require covered entities to report on.

The proposal would require institutions with large numbers (at least 75,000) of reported transactions to submit their HMDA data on a quarterly, rather than annual basis.

The proposal provides that HMDA reporters may direct the public to a publicly available Web site to obtain HMDA data for a particular institution.

The CFPB is proposing many changes to clarify and provide additional guidance on existing requirements of Regulation C. Examples would include guidance on:

  • What types of residential structures are considered dwellings;
  • The treatment of manufactured and modular homes and multiple properties;
  • Coverage of pre-approval programs and temporary financing;
  • How to report a transaction that involved multiple financial institutions;
  • Reporting the action taken on an application; and
  • Reporting the type of purchaser for a covered loan.

Comments to the proposed regulation are due to the CFPB by October 29, 2014; please submit your comments to CUNA by October 15.

If you have any questions or comments, please contact CUNA Associate General Counsel Jared Ihrig at jihrig@cuna.com.

Source: CUNA News Now


Regulatory Advocacy Report

The CUNA Regulatory Advocacy Report keeps you on top of the most important changes in Washington for credit unions--and what CUNA is doing to monitor, analyze, and influence government agencies and federal law. You can view the current report and past reports from the archive.

 

InfoSight
Compliance eNEWSLETTER

September 26, 2014
Vol. 8, Issue 37

Created in partnership with the

Credit Union National Association

Cloud Computing

As the need to address record and information storage demands increases credit unions continually look for new cost effective methods of processing and storing information. Cloud computing is a technological advancement that can be advantageous to credit unions. This presentation provides information on the requirements for Cloud Computing and how it impacts your credit union.

Click here for the video

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DOL and ERISA Audits webinar 10-01-2014

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CUNA ACH eSchool 10-07-2014

ACH Fundamentals webinar 10-07-2014

How to Document and Report After Fraud webinar 10-08-2014

Opening Business Accounts webinar 10-08-2014

ACH Error Resolution - Unauthorized, Revoked, Stop Payments - Which is it webinar 10-09-2014

EEOC Diversity and Affirmative Action Plans - OFCCP webinar 10-15-2014

Remote Deposit Capture webinar 10-15-2014

ACH Basics webinar 10-16-2014

CUNA Attorneys Conference 10-19-2014

Lending Compliance Hot Topics webinar 10-20-2014

Government Payments Overview webinar 10-21-2014

Harassment, Discrimination and Workplace Violence webinar 10-22-2014

Online Banking for Business Accounts webinar 10-22-2014

DNEs and Reclamations - A Financial Institutions Liability webinar 10-23-2014

CUNA Bank Secrecy Act Conference (2014) 10-26-2014

HR Audits - The Whats and the Whys webinar 10-29-2014

CUNA Bank Secrecy Act eSchool (2014) 11-05-2014

CUNA Information and Technology Compliance eSchool 11-07-2014

Vendor Management - The Big Picture webinar 11-07-2014

Social Engineering the Credit Union webinar 11-14-2014

IT Examination Hot Spots and Examination Focus webinar 11-21-2014

Electronic Discovery in Litigation webinar 12-05-2014

IT Compliance and Enterprise Risk Management webinar 12-12-2014