Compliance Blog

Written by Steve Van Beek

A Quick Note:  NAFCU's offices will be closed Friday, December 23rd and Monday, December 26th for the Christmas holiday.  We will be back blogging on Tuesday.  We hope you all have a wonderful holiday weekend!

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We've tracked the CFPB's republishing in Monday and Tuesday's blog posts.  The CFPB hasn't slowed down.  

• Published in the Federal Register on Wednesday, December 21:
  • Equal Credit Opportunity (Regulation B)
  • Fair Credit Reporting (Regulation V)
  • Interstate Land Sales Registration Program (Regulations J, K, and L)
  • Privacy of Consumer Financial Information (Regulation P)
  • Truth in Savings (Regulation DD)

• Published in the Federal Register on Thursday, December 22:
  • Truth in Lending (Regulation Z)

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On December 7th, we blogged on the possibility of the CFPB combining consumer regulations when it conducted its republishing.  Now that the CFPB has made progress on their republishing, we know additional information.  

NCUA will retain authority over Part 707 - implementing the Truth in Savings Act for credit unions.  Footnote 2 of the Proposed Rule contains this information:

"2. Dodd-Frank section 1029 generally excludes from this transfer of authority, subject to certain exceptions, any rulemaking authority over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both. Further, Dodd-Frank section 1100B did not grant the Bureau TISA rulemaking authority over credit unions or repeal the NCUA's TISA rulemaking authority over credit unions under 12 U.S.C. 4311."  (emphasis added)

The proposed regulation (12 CFR 1030) mirrors the current Regulation DD (12 CFR 230) and includes this language in Part 1030.1(c):

"(c) Coverage. This part applies to depository institutions except for credit unions. In addition, the advertising rules in § 1030.8 of this part apply to any person who advertises an account offered by a depository institution, including deposit brokers."

What this means is that NCUA will need to follow the CFPB's lead on Truth in Savings issues just as they did in the past following the Federal Reserve.  The U.S. Code section cited by the CFPB - 12 U.S.C. 4311 - still requires NCUA to adopt a "substantially similar" regulation within 90 days.  NCUA's regulation, which will still be located in 12 C.F.R. 707, will continue to reflect the unique nature of credit unions.  

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This year - my Christmas gift came early.  Two months ago, in fact.       

Michigan's victory over Ohio State wasn't too bad either.  I was able to enjoy The Game with my father-in-law (as he is from Ohio, he didn't enjoy it as much).  Luckily, we were able to get a photo before the game where we both were happy.  

Have a wonderful holiday weekend!