Flood Insurance

Flood insurance is a special insurance required for loans secured by dwellings located in a flood plain. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, has made the purchase of flood insurance mandatory for a federally backed mortgages on structures located in special flood hazard areas. Making, increasing, extending, or renewing a loan secured by a dwelling located in a special flood hazard area (SFHA) may trigger compliance.

At this time, the NCUA does not regulate CUSOs for flood insurance; however, if a CUSO wants to sell a loan to Fannie Mae or Freddie Mac the loan must meet the flood insurance requirements.

How does flood insurance affect credit unions?

Credit unions must check to determine if a dwelling is located in a special flood hazard area (SFHA). The Federal Emergency Management Agency (FEMA) issues the flood maps that identify the special flood hazard areas. The credit union may use a third party to make the determination of whether the secured property is or will be located in an SFHA; however, the credit union can rely on that determination only if the third party guarantees the accuracy of the information provided to the credit union.

All designated loans that fall within a flood plain must have flood insurance. A "designated loan" is a loan secured by a building or mobile home that is located or will be located in a special flood hazard area (SFHA) in which flood insurance is available under the National Flood Insurance Program (NFIP).

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

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New SDN List format

OFAC has announced the release of the Specially Designated Nationals (SDN) list in an XML data format that is based on the United Nations 1267/1988 Committee's Advanced Sanctions Data Model. This format gives sanctions lists new capabilities and will aid list users in executing their compliance obligations.

Click here for Frequently Asked Questions regarding this new format.

Users of the advanced xml file are welcome to provide comments about the new format to OFAC at O_F_A_C@do.treas.gov

Source:  US Department of Treasury

NCUA Hosting Financial Literacy Webinar and Twitter Chat April 22

Credit unions interested in promoting greater financial literacy among their members, particularly young members, can get valuable information and discuss their ideas and activities on a webinar and a Twitter chat hosted by the National Credit Union Administration on Wednesday, April 22.

The webinar, “Your Mission in Action: Developing Youth Financial Literacy and Savings Programs,” is scheduled to begin at 2 p.m. The webinar is scheduled to last 90 minutes, and there is no charge.

Ken Worthey, Financial Literacy and Outreach Analyst in NCUA’s Office of Consumer Protection, will moderate the webinar. He will be joined by Gail Laster, Director of NCUA’s Office of Consumer Protection; NCUA Consumer Affairs Director Morgan Rogers; Louisa Quittman, Director of the U.S. Treasury’s Office of Financial Education; Gigi Hyland, Executive Director, National Credit Union Foundation; and Katie Bryan, Communications Director for the Consumer Federation of America.

Topics that will be discussed include:

  • Strategies for developing new youth financial literacy programs or enhancing current programs,
  • Research available on youth savings and financial literacy,
  • Making outreach effective, and
  • Financial literacy resources available from NCUA, other federal agencies and nonprofits.

Online registration is available here. Participants will also use this link to log into the webinar. Registrants should allow pop-ups from this website.

Source: NCUA

FHLB access among 5 CUNA-backed reg. relief bills winning House approval

WASHINGTON (4/14/15)--Five CUNA-supported regulatory relief bills sailed through the House Monday, including a stand-alone credit union relief measure that would correct a drafting error that has prevented some credit unions from accessing Federal Home Loan Bank membership.

"CUNA and credit unions could not be more appreciative that the House's first order of business after coming back to session after a two-week District Work Session is to vote favorably on a regulatory relief package that will help credit unions better serve their members," Ryan Donovan, CUNA Chief Advocacy Officer, said Monday after the votes.

"We look forward to working closely with Senate Banking Committee leadership to help these important statutory changes make their way through that chamber and onto the president's desk to be signed into law," he added.

The other CUNA-supported bills approved by resoundingly favorable votes in the House were:

  • The Privacy Notice Modernization Act (H.R. 601), which would require financial institutions to send privacy policy notifications only when the policy has changed. Since 2001, credit unions have sent out an average of 87 million notices per year. The bill passed by a voice vote;
  • Helping Expand Lending Practices in Rural Communities Act (H.R. 1259), which would direct the Consumer Financial Protection Bureau (CFPB) to establish an application process for determining whether an area should be defined as "rural," which would impact products credit unions in those areas could offer. The bill was passed by the House during the last Congress and passed Monday with a 401-1 vote;
  • Bureau Advisory Commission Transparency Act (H.R. 1265), which would open up meetings of the CFPB's Credit Union Advisory Council to the public. The bill passed with a vote of 401-2; and
  • The SAFE Confidentiality and Privilege Enhancement Act (H.R. 1480) would allow state and federal regulatory officials with financial services industry oversight authority to access information provided to the Nationwide Mortgage Licensing System and Registry without the loss of confidentiality protections provided by federal and state laws. The bill passed Monday by a 401-0 vote.

Source: CUNA News Now

CFPB Files Suit Against Participants in Robo­Call Debt Collection Operation

Last week, the CFPB filed a lawsuit against a robo­call debt collection operation. The CFPB alleges that Marcus Brown and Mohan Bagga led a group of individuals and entities that threatened, harassed, and deceived consumers in order to collect phantom debt. Phantom debt is debt consumers do not actually owe or debt that is not payable to those attempting to collect it. According to the complaint, Brown and Bagga and those working with them used many fictitious names as they threatened consumers with arrest, wage garnishment, and “financial restraining orders.” The CFPB’s claims against these defendants are based on the Consumer Financial Protection Act and the Fair Debt Collection Practices Act. The CFPB’s complaint alleges that consumers were tricked into believing that the collectors were legitimate because the collectors verified consumers’ personal information, such as date of birth, social security number, the names of family members, and employment information. According to the complaint, Brown and Bagga purchased consumers’ personal information from debt brokers and lead generators. They then used a telemarketing firm, Global Connect, to automatically broadcast robo­calls to millions of consumers. The calls alleged that the consumer had engaged in check fraud and threatened to contact the consumer’s employer. In response to the debt collectors’ threats and false statements, consumers provided credit or debit card payment information. The complaint alleges that once the debt collectors got consumers’ payment information; they would submit it to the payment processors, who enabled the collectors to access consumers’ bank accounts to withdraw money, despite the many indications of misconduct.

Source: CUNA News Now

NCUA Updates National Supervision Policy Manual regarding Approval of Secondary Capital

NCUA recently announced revisions to its National Supervision Policy Manual intended to make secondary capital processes easier for low­income credit unions as well as investors. Specifically, the changes were aimed at achieving two goals: expediting the approval of secondary capital requests by regional offices and making it possible for credit unions that have secondary capital to return portions of the loans that no longer count towards net worth. The revised procedures can be found in the updated section of the agency’s National Supervision Policy Manual

Source: CUNA News Now


Less than Two Weeks Left Until RBC2 Comment Deadline

With April 27 fast approaching until NCUA’s comment deadline for RBC2, the agency has already received and posted 350 comment letters to their website. While there have been several key changes made to this version of the Risk Based Capital proposal, it is still important for credit unions to comment, and encourage all members that previously commented to do so again. For the most up-to-date resources on this proposal, and to see CUNA’s guide on how to write an effective RBC2 comment letter, please visit CUNA’s Risk-Based Capital Action Center, and RBC Blog. CUNA members can also contact us directly with any questions or comments by emailing RBC@cuna.coop.

Source: CUNA

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.

Compliance eNEWSLETTER

April 17, 2015
Vol. 9, Issue 15

Created in partnership with the

Credit Union National Association

CUBE TV - Compliance Outlook for 2014 4th Quarter and 2015 1st Quarter

This presentation reviews the compliance issues your credit union has worked on in the fourth quarter of 2014, and the upcoming issues we will face during the first quarter of 2015.

Click here for the video

April, 2015 May, 2015
  • May 16th, 2015: IRS Form 990 Due
  • May 25th, 2015: Memorial Day - Federal Holiday
July, 2015 August, 2015 September, 2015
  • September 7th, 2015: Labor Day - Federal Holiday


CUNA offers hundreds of online training events that make it easy for you to learn right at your desk. Whether you are looking for a beginner course or want a comprehensive understanding on a specific topic, CUNA webinars, audio conferences and eSchools have what you need. Click here for updates on compliance, operations, lending topics and more!

CUNA Regulatory Compliance School (Spring Las Vegas) 4/12/2015

Cyber Crime - No Gun Needed, Detecting and Preventing a Corporate Account Takeover webinar (5/13/2015

CUNA Consumer Lending eSchool (2015) 6/1/2015

The Basics of Consumer Lending – Part 1 webinar 6/1/2015

Home Equity Lending webinar (2015) 6/4/2015

The Basics of Consumer Lending – Part 2 webinar 6/8/2015

Consumer Lending Compliance 101 webinar 6/11/2015

Top 100 Trends in New and Used Car Lending - Plus Unsecured Lending webinar 6/15/2015

Advanced Exceptions with International ACH Transactions (IAT) - OFAC Compliance webinar 6/17/2015

Financial Counseling - What to Look for and What to Know as a Lender webinar 6/18/2015

Use of Loan Guaranties Instead of Co-Signers webinar 6/25/2015

CUNA Residential Mortgage Lending eSchool 7/7/2015

Minimizing the Risk of Mortgage Fraud webinar 7/7/2015

Growing Your Purchase Loan Volume - Building Market Share webinar 7/9/2015

Seizing Market Share in a Purchase Market webinar 7/14/2015

Putting Common Sense in Underwriting - Will the Loan Be Repaid or Not webinar 7/16/2015

What is New in Mortgage Lending Compliance webinar 7/21/2015

CUNA Marketing Compliance eSchool 7/22/2015

Appraisal Madness - How to Know if the Value is Supported webinar 7/23/2015

Custom Construction Lending - An Introduction webinar 7/28/2015

Introduction to Financial Management Analysis and Problem Solving webinar 9/10/2015

Custom Construction Lending - Technical Stuff, Best Practices and Red Flags webinar 9/10/2015

Money Mission Demo - Online Financial Literacy Game webinar 09/14/2015

Balance Sheet Earnings webinar 9/17/2015

Introduction to Investments webinar 9/24/2015