Compliance Blog

Written by Elizabeth M. Young LaBerge, Regulatory Compliance Counsel

Happy Wednesday! NCUA has been issuing press releases and webinars left and right this summer. I wanted to take a moment and make sure everyone was up to date. Also, the CFPB has taken some enforcement actions and issued some new volumes of supervisory publications, which credit unions may want to be aware of.

NCUA Webinars and Resources

• On July 15, NCUA released a new video and a colorful brochure for members regarding remittance transfers. Both items are also available in Spanish.

• On August 10, NCUA will host a webinar entitled Marketing Effective Use of Social Media discussing how to create, target, message and execute social media marketing. Online registration is available here. As a reminder, the FFIEC has issued guidance regarding the use of social media in its Social Media: Consumer Compliance Risk Management Guidance.

• On August 18, NCUA will host a webinar focused on its Revised Interest Rate Risk Supervision Procedures, and its plans for adding an S to CAMEL. There will be a Q&A on supervisory expectations and NCUA's process for implementing procedures and training examiners. Online registration is available here. For credit unions who are interested, NCUA's current resources for interest rate risk can be found here.

• Finally, on July 6, NCUA released the latest installment of its Economic Update video series, discussing the current trends, the outlook on interest rates, and the implications of Brexit.

CFPB Supervisory Publications and Enforcement Actions

• The CFPB has released issue 11 of its Supervisory Highlights, a special edition focused on mortgage servicing. The issue discussed supervisory findings surrounding loss mitigation and servicing transfers. Regarding loss mitigation, the CFPB found issues in loss mitigation acknowledgement notices, offer letters, denial notices and related communications. Regarding servicing transfers, it highlighted issues with transfer policies and procedures, especially when a loan is in the loss mitigation process.

• The CFPB also released volume 12 of its Monthly Complaint Report. This volume focused on complaints surrounding consumer loans, including auto lending. In its geographic spotlight, the Report focused on Arkansas.

• On June 29, the CFPB announced the filing of an enforcement action against BancorpSouth Bank alleging discriminatory mortgage lending practices, including redlining, charging more to similarly qualified African-American customers and implementing an explicitly discriminatory loan denial policy. As a reminder, NCUA's Fair Lending Guide and the FFIEC Interagency Fair Lending Examination Procedures are available for credit unions seeking to comply with fair lending requirements.

• On July 14, Santander Bank entered into a Consent Order with the CFPB regarding violations in connection with its overdraft protection program. The Consent Order states that Santander Bank initiated a vigorous telemarketing campaign to enroll customers in its overdraft protection program, and misled customers regarding the nature of those sales calls and the opt-in process. The violations recited in the Consent Order included failing to obtain an affirmative opt-in and  misleading consumers about the program, including the fees involved, the consequences of not opting-in and the transactions covered by the service. Among other requirements, the Consent Order requires that Santander Bank pay a $10 million civil money penalty. Credit unions seeking to avoid Santander's fate can consult NCUA's Letter to Credit Unions 05-CU-03 and its enclosed Interagency Guidance on Overdraft Protection Programs.

One for the Road: FinCEN
 

• Yesterday FinCEN issued FIN-2016-G003, entitled Frequently Asked Questions Regarding Customer Due Diligence Requirements for Financial Institutions. The FAQs provide 26 Q&As designed to assist credit unions in understanding and implementing the new CDD requirements. Credit unions that are covered must comply by May 11, 2018.

NAFCU member credit unions with questions or looking for resources should reach out to the NAFCU Regulatory Compliance Team. We are here to help!