All Compliance Couriers

News & Information

All Couriers

Members can also receive (via email) electronic copies of Compliance Couriers and the Monthly Compliance Digest. If you wish to subscribe to the Compliance Courier and Monthly Compliance Digest email distribution list, please send an email with your name and credit union to: jbonk@theleague.coop.
  • PolicyAid quarterly updates announced

    NEWS:  PolicyAid has announced the quarterly additions & updates to its sample compliance policies. 

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 


    Oct 15, 2019
  • CFPB extends temporary HMDA coverage threshold for another two years

    NEWS:  The CFPB today amended its Home Mortgage Disclosure Act (HMDA) rules, making changes that the agency said would “provide relief to small institutions.” The amendments extend for another two years the temporary threshold for collecting and reporting data about open-end lines of credit.


    Oct 10, 2019
  • If the credit union is open on Columbus Day, is that a business day for right of rescission purposes?

    Q&A:  Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.      If the credit union closes a mortgage refinance loan on Friday October 11, and it is open on Columbus Day October 14, do we count Columbus Day as one of the 3 business days for right of rescission?



    Oct 9, 2019
  • Removing one joint account holder is problematic

    TIP:  Credit unions sometimes ask whether they can or should remove the name of one joint account holder from an account. Some credit unions allow this to be done, while others insist that the account be closed and re-opened without the joint owner. 


    Oct 7, 2019
  • What does "legally separated" mean?

    Q&A:  Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

     Q.      Can you shed some light on the "legally separated" issue? If we are doing a loan for someone and they indicate they are "legally separated" how is that handled?  Would we need the spousal information?  Help!


    Oct 4, 2019
  • September 2019 Compliance Digest

    What's in this Issue?

    • This Month's Couriers
    • Regulatory Action Calendar
    • Upcoming Compliance Events
    • ii Release Revisions

    Sep 30, 2019
  • Repossession notices must comply with state laws

    TIP:  If your credit union is a CUNA Mutual bondholder, you may have gotten their recent Risk Alert about a class action lawsuit in Massachusetts against American Honda Finance.
    Sep 30, 2019
  • NCUA updates audit rules, adds new payday alternative loan rules

    NEWS:  The NCUA Board met last week, voting to adopt several proposals that may impact Wisconsin credit unions. The rules will be effective 90 days after publication in the Federal Register, which should happen in the coming weeks.
    Sep 26, 2019
  • "90 days, no payments!" Is that legal?

    Q&A:  Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.        I was under the impression that the first payment on a consumer loan had to be due within the first 45 days. Everywhere I look, lenders are promoting “no payment for the first 90 days” on car loans and other credit. Is that legal?


    Sep 25, 2019
  • DOL raises threshold for federal overtime rules

    NEWS:  Employees who make less than $35,568 will soon be eligible for overtime pay under a final rule the U.S. Department of Labor (DOL) issued today. The change is slated to take effect Jan. 1, 2020, though experts say that a court challenge may be likely. The DOL estimates that the rule will make 1.3 million U.S. workers newly eligible for overtime pay.
    Sep 24, 2019
  • Wisconsin vehicle title fees more than doubling as of Oct. 1

    NEWS:  The Wisconsin Department of Transportation (DOT) has announced that it is more than doubling vehicle title fees – from $69.50 to $164.50 – as of Oct. 1, 2019. DOT staff has told The League that the increase will be based on a vehicle’s purchase date: The higher fee will have to be paid for any vehicle that is purchased onor after Oct. 1.
    Sep 18, 2019
  • File SARs and report suspected financial abuse of the elderly

    TIP:  If you attended The League's Fall Compliance Roundtable last week, you heard a speaker from AARP discuss common elder financial abuse schemes. I followed up with a summary of laws that allow you to report such abuse. For those who couldn't attend, here's a recap. (Be sure you don't miss out again by attending our Spring Roundtable in March 2020. Watch for details from our Education and Training team!)
    Sep 17, 2019
  • Is your board ready for the new fidelity bond rules, effective Oct. 22?

    ANALYSIS:  If you attended The League's Fall Compliance Roundtable, you heard me give an update on the NCUA’s new fidelity bond requirements. As of Oct. 22, 2019, your credit union's board of directors will need to be more closely involved in the purchase or renewal of fidelity bond coverage, and a board member (not a credit union employee) will have to sign for any bond purchase or renewal.

    For those who couldn't attend our Fall Roundtable, this Courier has details. Be sure you don't miss out again by attending our Spring Roundtable in March 2020. Watch for details from our Education and Training team!


    Sep 12, 2019
  • Send change-in-terms notices the right way for Reg. CC inflation adjustments

    TIP:  Recently, we sent you a Compliance Courier to let you know about Reg. CC amendments, adjusting certain funds availability amounts for inflation. The changes were required under the Dodd-Frank Act.
    Sep 11, 2019
  • CFPB's payday lending rule stayed by court order

    NEWS:  A federal district court in Texas has stayed the compliance date of the CFPB's payday lending rule, including the payment provisions which had been scheduled to take effect on August 19, 2019.
    Sep 9, 2019
  • CUNA Mutual: Lawsuit threats growing over overdraft practices & NSF fees

    NEWS:  CUNA Mutual Group has seen a recent spike in the number of credit unions getting demand letters that threaten litigation over overdraft practices and NSF fees.


    Aug 28, 2019
  • Federal appeals court ruling is a win for NCUA on FOM

    NEWS:  A federal appeals court in Washington D.C. issued an opinion earlier this week, upholding almost all of the NCUA's recently expanded field of membership (FOM) rules for federal credit unions (FCUs). The rules had been challenged by the American Bankers Association. 


    Aug 22, 2019
  • NCUA issues regulatory alert on serving hemp businesses

    NEWS:  The NCUA has issued interim guidance to help credit unions better understand what they should consider in providing financial services to lawfully operating hemp businesses. NCUA Regulatory Alert No. 19-RA-02 was issued to all federally insured credit unions yesterday. This appears to be the most extensive guidance on the hemp industry that any federal financial regulator has issued. 
    Aug 20, 2019
  • FASB proposal would delay CECL for CUs until 2023

    COMMENT CALL: The Financial Accounting Standards Board (FASB) is proposing to delay implementation of its “current expected credit loss” (CECL) standard, as it applies to credit unions, until January 2023. 


    Aug 19, 2019
  • CFPB's new TRID FAQs focus on Loan Estimates and "applications"

    NEWS:  Recently, the CFPB released five new “frequently asked questions” on the TILA-RESPA Integrated Disclosure (TRID) rules. The new material appears at the end of this set of FAQs, which the CFPB updates from time to time. The new Q&As all focus on the rules for providing Loan Estimates.


    Aug 13, 2019
  • Rates went down so notices go out

    ANALYSIS:  The recent drop in the daily prime rate from 5.50% to 5.25% was the first downward movement in the index in over 10 years. ARMs, HELOCs and other variable-rate loans tied to the prime rate may need rate change notices. Even when your indexed loans are adjusting down, many affected loans will require a rate change notice.  Unfortunately, in most cases the timing and content requirements for the notices are inconsistent with delivery in the monthly statements.

    Aug 12, 2019
  • Fed to introduce FedNow Service for near-instant payments in 2023-24

    NEWS:  The Federal Reserve has announced that it will build and operate its own system for nearly instant payments, called the FedNowSM Service. To be available in 2023 or 2024, the system will provide for interbank 24x7x365 real-time gross settlement (RTGS) service with integrated clearing functionality to support faster payments across the U.S.


    Aug 6, 2019
  • The Federal Trade Commission (FTC) has some great advice that credit unions may want to share with their members

    NEWS: The FTC points out that 147 million people are entitled to benefits under last week's settlement of the September 2017 Equifax data breach. Those whose data was compromised can choose either:


    Aug 2, 2019
  • CFPB updates 2020 dollar amounts for credit card penalties, HOEPA triggers and QM limits

    NEWS:  The Consumer Financial Protection Bureau (CFPB) has released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures go into effect Jan. 1, 2020. Please see the final rule for details.    


    Aug 1, 2019
  • CFPB seeks input on Qualified Mortgage definition & end of "GSE patch"

    COMMENT CALL: The CFPB has published an Advanced Notice of Proposed Rulemaking, asking for feedback on the Ability to Repay/Qualified Mortgage (ATR/QM) Rule. A temporary provision, which is set to expire in January 2021, now allows loans to be treated as “Qualified Mortgages” (QMs) if they are eligible for purchase or guarantee by Fannie Mae and Freddie Mac. With that provision going away, the CFPB asks, does it make sense to change the definition of a QM?

    Aug 1, 2019
  • Compensation & the board of directors

    Q&A:  Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.      Can our credit union pay any compensation to its board members?


    Jul 26, 2019
  • NCUA amends appraisal & fidelity bond rules; proposes "second chance" interpretive ruling

    NEWS:  The NCUA has finalized amendments to two of its rules. The first, which The League wrote in support of, will expand appraisal rule exemptions for non-residential real estate from $250,000 to $1 million. The second strengthens a board of directors’ oversight of a federally insured credit union's fidelity bond coverage. 


    Jul 22, 2019
  • New ii Release covers CU’s BSA requirements for money services businesses

    NEWS:  The League has published a new resource to help credit unions understand the federal Bank Secrecy Act / Anti-Money Laundering (BSA/AML) compliance requirements that apply if they offer services to a “money services business” (MSB). 

     


    Jul 19, 2019
  • 7th Circuit affirms dismissal of ADA website case by person ineligible for CU membership

    NEWS:  The U.S. Court of Appeals for the 7th Circuit has upheld the dismissal of an Americans with Disabilities Act (ADA) discrimination lawsuit in an Illinois credit union case of importance to credit unions here in Wisconsin. Since the plaintiff is not eligible for membership, the court held that he lacked the standing to sue, under Article III of the Constitution. As described in this December Compliance Courier, The League had filed a "friend of the court" (amicus curiae) brief, jointly with CUNA and the Illinois Credit Union League. Wisconsin is in the 7th Circuit, so the decision sets a binding precedent for federal judges to follow in future cases in Wisconsin.  


    Jul 17, 2019
  • Transfer by Affidavit form undergoing revisions

    Q&A:   Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.  Is it true that the Transfer by Affidavit procedure has been eliminated due to abuses?


    Jul 15, 2019
  • California Consumer Privacy Act may affect some Wisconsin CUs

    NEWS:  The California Consumer Privacy Act (CCPA), which takes effect Jan. 1, 2020, significantly expands the privacy rights of California residents. The CCPA applies even if a business has no physical presence in California but merely “does business in” that state. As a result, some Wisconsin-based credit unions that serve California residents may find themselves covered by the CCPA.

    The CCPA does not specifically define “doing business.” Credit unions can presume that it applies to any organization, whether geographically located in California or not, if the organization is “operated for the profit of financial benefit of its shareholders or other owners,” and if it collects “personal information” about California residents, and if it meets any one of these three tests:


    Jul 10, 2019
  • Federal, state laws address photocopying IDs

    Q&A:  Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.     Are there any state-specific statutes that prohibit the credit union from retaining images of members’ IDs or driver’s licenses?
    Jul 8, 2019
  • Reg. CC check availability thresholds changing July 1, 2020

    NEWS:  The CFPB and the Federal Reserve have finalized amendments to Reg. CC, adjusting certain funds availability amounts for inflation as of July 1, 2020. The changes were required under the Dodd-Frank Act.
    Jul 1, 2019
  • Help The League comment on CFPB's HMDA proposal

    COMMENT CALL:  The Consumer Financial Protection Bureau (CFPB) is asking for public comment on whether to change the data points that certain lenders must collect under Reg. C, the Home Mortgage Disclosure Act (HMDA) rules. It is also asking for comments on the requirement that lenders report certain business- or commercial-purpose transactions under Reg. C, to help the CFPB decide whether it should “exclude such transactions from HMDA's requirements.”
    Jun 28, 2019
  • "Sub-accounts" don’t need identical parties

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.     Can you provide some clarification on account titling when the credit union funds loans to an account? For example: A member has an individual account with savings and checking, then gets a joint loan with someone else. Does the account ownership need to be changed to joint?


    Jun 24, 2019
  • NCUA proposes delaying RBC rule to 2022

    NEWS:  The NCUA today voted to propose another delay to its risk-based capital (RBC) requirements for large credit unions, pushing back the effective date by two more years, to Jan. 1, 2022. 


    Jun 20, 2019
  • Be careful about recovering repo costs on consumer loans

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q.        When we repossess a vehicle, what repo costs can we add to the debt? For example, we might incur recovery fees, storage fees, advertising fees, or charges to fix or recondition the collateral.


    Jun 19, 2019
  • Keep marketing rules in mind when promoting Saver's Sweepstakes

    TIP:  The League’s Saver’s Sweepstakes® program continues to grow in popularity.  As of May, 32 credit unions participate in the program, 3,323 Saver’s Sweepstakes accounts have been opened, and members have saved a whopping total of $1,662,474!
    Jun 14, 2019
  • Credit unions get two partial regulatory reprieves

    NEWS:  Yesterday saw two pieces of somewhat welcome news from Washington for credit unions: Partial relief for legitimate credit union calls as part of the Federal Communications Commission's (FCC's) "robocall" ruling, and a delay to the effective date for the mandatory underwriting provisions of the Consumer Financial Protection Bureau's (CFPB's) Payday Lending Rule. While these developments are steps in the right direction, The League had urged both regulators to go further in protecting credit unions' interests.
    Jun 7, 2019
  • Beware of mortgage closing scams

    ALERT:  Scammers are trying a new tactic, the FBI reports, sending homebuyers bogus emails that appear to be from mortgage professionals, with phony instructions for wiring closing funds. Credit unions should be on the lookout for these scams and warn loan applicants and settlement agents. The CFPB warned of the scam earlier this week in a homebuyer alert: Mortgage Closing Scams: How to protect yourself and your closing funds.
    Jun 5, 2019
  • NCUA issues private flood insurance guidance; webinar June 18

    NEWS:  Back in February, The League alerted credit unions about changes to federal flood insurance regulations, requiring federally insured credit unions to accept private flood insurance policies under certain conditions, and allowing them to do so in other circumstances.


    Jun 5, 2019
  • Indirect sales and "credit sales" of repossessions raise compliance issues

    TIP:  Some credit unions are under the impression that they can’t finance the sale of repossessed or surrendered personal property, like vehicles. They certainly can finance those sales (even though some may worry that it’s “bad karma”), but there are a few extra compliance obligations.

    Financing the sale of personal property that’s in the credit union’s possession is a “credit sale,” which means a transaction where the same party is both the seller and the lender. Indirect lending also involves a credit sale, since the dealer sells the vehicle and finances the sale, even though the dealer paper is then assigned to the credit union. Special rules apply to all credit sales.

    This Courier summarizes the compliance concerns that arise, and the special form that’s needed, when a credit union wants to finance the sale of repossessed or surrendered personal property.


    May 29, 2019
  • Do you have to send borrowers the note stamped “paid” when a loan is paid off?

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q. When a consumer loan is paid off, is the credit union required to send a copy of the note – stamped “paid” – to the borrower?  We send a letter letting them know their loan is paid (and have instructions for releasing a lien on vehicles). Is that OK? How about mortgage loans? 


    May 28, 2019
  • League introduces free BSA & OFAC training webinars

    NEWS:  The League is pleased to offer member credit unions several free webinars on Bank Secrecy Act (BSA) and Office of Foreign Assets Control (OFAC) compliance.

    The webinars, prepared by our own Legal Affairs team, are all available here, or you’ll find a link to them from the main Compliance landing page on The League’s website.


    May 23, 2019
  • Due diligence is the key to serving hemp and CBD businesses

    ANALYSIS:  Credit unions can serve hemp and CBD businesses to the extent that their products are legal.

    Marijuana, including medical marijuana, is currently illegal under Wisconsin and federal law. What’s the difference between hemp and marijuana? To avoid being considered marijuana under Wisconsin law, hemp (and products derived from hemp) must meet two conditions: 

    1. THC levels must not exceed 0.3% on a dry weight basis; and 
    2. The hemp must have been grown or processed through a state or tribal industrial hemp pilot program. 

    Serving legal hemp and CBD businesses is unfamiliar territory, and it requires due diligence. Changes described below could be coming to make due diligence a bit easier.


    May 22, 2019
  • CFPB seeks input on Reg. E debit card overdraft opt-in rule

    NEWS:  The CFPB has announced a plan to periodically review its regulations that have a significant economic impact on a substantial number of small business entities. It’s starting with the Reg. E Overdraft Rule for debit cards.

    The CFPB has published a "Request for Information" about the 2009 Reg. E Overdraft Rule. It bars credit unions and other financial institutions from charging overdraft fees when they pay ATM and one-time debit card transactions that overdraw a consumer's account, unless the consumer has affirmatively consented (or "opted in").


    May 16, 2019
  • Additional Concerns over Overdraft/NSF Fees

    NEWS:  Several months ago, we informed you in this Compliance Courier about a flurry of class-action lawsuits against credit unions, alleging improperly assessed overdraft fees. Credit unions are again being targeted for charging certain overdraft and NSF fees. NSF fees are charged when there isn't enough money in an account to cover a transaction and the item is returned. Overdraft fees, on the other hand, are charged when a transaction is processed even though the account has insufficient funds.   

    May 2, 2019
  • PolicyAid announcement of quarterly updates

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    May 1, 2019
  • New UCC online system hits some snags

    NEWS:  Last week, Wisconsin Department of Financial Institutions (DFI) transitioned to a new Uniform Commercial Code (UCC) online system. Users have reported some concerns, including new fees, delays and difficulty accessing data. 


    Apr 30, 2019
  • State Supreme Court: No damages for failing to send right to cure notice

    NEWS:   The Wisconsin Supreme Court has sided with The League, issuing an opinion that a creditor's failure to send a notice of right to cure before suing a delinquent debtor does not entitle that debtor to claim damages from the creditor under the Wisconsin Consumer Act ("WCA").

    Apr 23, 2019
  • Naming "heirs" as POD beneficiaries raises compliance risks

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q. Rather than listing specific people as payable on death (POD) beneficiaries for his account, our member simply wants to note that the funds should be divided among his "heirs." Should we allow this?


    Apr 22, 2019
  • Don't accept "contingent" POD beneficiaries

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q. A member wants to name a payable on death (POD) beneficiary on an account. They also want to add that if the named beneficiary dies before the member, then the funds should go to a different person, instead. Can we allow this?


    Apr 18, 2019
  • NCUA updates CECL FAQs, plans webinar for Thursday

    NEWS: The League’s Compliance Couriers don’t generally stray into accounting issues. We’re just lawyers, after all, not CPAs. But we want to be sure credit unions are aware of two recent NCUA announcements about the coming Current Expected Credit Loss (CECL) accounting standard for estimating allowances for credit losses.
    Apr 9, 2019
  • Check out The League's on-demand Wisconsin compliance webinars

    NEWS:  Did you know that The League offers a whole series of on-demand compliance webinars that focus exclusively on Wisconsin legal issues?

    Our Education & Training department hosts a broad selection of on-demand compliance webinars. Many are recordings of recent presentations by national speakers. You can also access a slate of on-demand webinars recorded by The League's own Legal Affairs team, focusing on Wisconsin compliance issues that every credit union needs to understand:


    Apr 8, 2019
  • HMDA "Getting it Right" guide updated for 2019

    NEWS:  An updated 2019 edition of the "Guide to HMDA Reporting: Getting It Right!" is now available. 
    Apr 1, 2019
  • Free webinars now available: Saver's Sweepstakes Compliance Bites

    NEWS: The League's Legal Affairs team has recorded a series of 11 short compliance videos, which we call Saver's Sweepstakes® Compliance Bites, to help explain our Saver's Sweepstakes program and the compliance issues that can arise. The free videos – most less than 10 minutes long – are only available to credit unions that have signed up to participate in our Saver's Sweepstakes prize-linked savings program. You'll find them in the Saver's Sweepstakes Resource Center

    Mar 25, 2019
  • NCUA approves 3 changes to FCU loan rules

    NEWS:  Yesterday, the NCUA Board approved changes to its rules on loans and lines of credit by FCUs. The amendments are meant to make the rules “more friendly,” the Board said, by doing three things:

    Mar 15, 2019
  • In what order does a credit union have to apply loan payments?

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.

    Q. I am looking for information on the proper way to apply loan payments.  I believe there is an order that payments should be applied in regards to principal, interest, and late fees. 


    Mar 11, 2019
  • Pulling credit reports on non-applicant spouses

    Q&A: Here's a question that a Wisconsin credit union recently asked The League's Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (800) 242-0833 or email.
     
    Q. When a married person applies on their own for a loan, we know that we're supposed to collect information about the other spouse. Can we pull a credit report on that other spouse? Should we?
    Mar 7, 2019
  • Introducing ii Release No. 0185 – Credit Union Training Checklist

    NEWS:  Recently, a credit union asked us in Legal Affairs what kinds of training are required or recommended for employees and board members. We thought that was a great question, and so we went to work on a new ii Release to answer it. Today, the League published ii Release No. 0185 - Credit Union Training Checklist
    Mar 4, 2019
  • Elder financial abuse reporting quadruples; train CU staff to do their part

    NEWS:  U.S. financial institutions filed four times more Suspicious Activity Reports (SARs) about elder financial abuse in 2017 than they did in 2013, according to a CFPB report, which says that almost 80% of the filings involved monetary losses for the victim or the financial institution. Older adults ages 70 to 79 lost on average $43,300. And when the older adult knew the suspect, the average loss was even larger – about $50,000. 
    Mar 1, 2019
  • Use checklist to screen your lending products ahead of payday lending rule deadline

    ANALYSIS:  Credit unions can start to prepare now for the August 19, 2019 effective date of the Consumer Financial Protection Bureau's (CFPB's) payday lending rule. 

    Although most credit union lending products will not be covered by the rule, some may need to be modified to achieve that result. The alternative is to prepare for compliance for any covered loans, ahead of the deadline.

    This Compliance Courier and our new ii Release No. B080 - Payday and Vehicle Title Loans can help you identify any loan products that may be impacted. The ii Release includes a detailed seven-question checklist to help determine whether any of your loans are covered. We provide a condensed version of the checklist at the end of this Compliance Courier to give you an overview, but it is important to use the detailed version in the ii Release. See Exhibit A, Parts I – IV.
    Feb 28, 2019
  • Review HR background check forms in wake of federal appeals court decision

    TIP:  Does your credit union pull credit reports for employment purposes (such as hiring or promotion decisions)? If so, take a close look at your background check forms. They could be setting you up for a lawsuit. 

    Feb 19, 2019
  • Don’t fall for BSA email "spear phishing" attack

    ALERT:  BSA officers and compliance staff at credit unions and banks around the country have been targeted recently by "spear phishing" emails with links to malware, the federal Financial Crimes Enforcement Network (FinCEN) warns. According to their website:

    FinCEN is aware of a fraudulent email purporting to be from a financial institution regarding the 314(b) Information Sharing Program. The recipients of the email are typically other financial institutions. The body of the email contains the following language: "We've got suspicions transfer from your client, and put it on hold. According section 314(b) of the USA PATRIOT Act we have to report you about potential money laundering. Please review the attached document with details of this case." If you receive an email with this text purporting to be from another financial institution, please disregard it.

    Please alert your staff not to click on the attachment if they receive the email described above.

     


    Feb 11, 2019
  • CFPB proposes to delay part, amend part of its payday lending rule

    NEWS:  The CFPB has issued two proposals related to its 2017 rule governing Payday, Vehicle Title, and Certain High-Cost Installment Loans:

    • One proposal would remove mandatory underwriting requirements – including ability-to-repay provisions – from its 2017 payday lending rule. This proposal will be open for a 90-day comment period, starting once it’s published in the Federal Register.
    • The other proposal would delay the implementation date – not for the entire rule but only for the mandatory underwriting provisions. The delay would extend the effective date by 15 months, from Aug. 19, 2019 to Nov. 19, 2020. This proposal will be open for a 30-day comment period, starting once it’s published in the Federal Register. (A lawsuit was brought against the CFPB in federal court in Texas to prevent enforcement of the payday lending rule. The court granted a stay of the rule’s compliance date after the CFPB announced the proposals.)

    Feb 7, 2019
  • Credit union hit by counterfeit personal checks on multiple accounts

    ALERT:  A Wisconsin credit union has so far avoided losses after being presented with multiple counterfeit personal checks. Although the checks list US Bank as the drawee institution, they actually use the credit union's routing number. The fictitious member's address is in Wichita, Kansas.
    Feb 6, 2019
  • NCUA approves private flood insurance rule

    NEWS:  The NCUA, along with other federal financial institution regulators (the OCC, Federal Reserve Board, FDIC, and Farm Credit Administration) have approved a joint final rule that will allow federally insured credit unions to accept private flood insurance policies under certain conditions.


    Feb 4, 2019
  • Federal court dismisses League claims in Equifax litigation

    NEWS:  A federal court in Georgia has dismissed claims by The League and other trade associations against Equifax, stemming from the massive 2017 data breach. We may amend the complaint, however, and continue to pursue the litigation.


    Jan 31, 2019
  • Examiners say account verification should include closed accounts

    TIP:  The League's Legal Affairs team has gotten questions in recent months about account verifications and whether closed accounts – not just open accounts – should be included.


    Jan 30, 2019
  • New NCUA Western Regional Director talks with Wisconsin CUs

    NEWS:   The National Credit Union Administration begins 2019 with a new regional structure, part of an agency-wide reorganization that began two years ago. Effective Jan. 7, the NCUA has consolidated its five regional offices into just three: Eastern, Western and Southern. Wisconsin is now part of the NCUA's Western Region, which includes 22 states and Guam.  


    Jan 25, 2019
  • Saver’s Sweepstakes program expands to include Illinois

    TIP:  The League has expanded its Saver's Sweepstakes program. Starting Jan. 1, 2019, participating credit unions have been allowed to offer it to their members who reside in Illinois, as well as Wisconsin and Minnesota.


    Jan 22, 2019
  • Foreign checks and Reg. CC

    Q&A:  Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer.

    Q.        Are foreign checks subject to the Reg. CC funds availability rules?


    Jan 18, 2019
  • Helping members weather the government shutdown? Check League compliance resources

    TIP:  With the federal government shutdown now the longest in U.S. history, the NCUA, other federal banking regulators, and the Conference of State Bank Supervisors issued a joint statement last week, encouraging all financial institutions to work with affected consumers.
    Jan 15, 2019
  • CFPB assesses effectiveness of ATR/QM & Mortgage Servicing rules

    NEWS:  Yesterday, the CFPB published reports, as required by the Dodd-Frank Act, assessing the effectiveness of two significant mortgage lending rules:
    Jan 11, 2019
  • NCUA's Supervisory Priorities for 2019

    NEWS:  Yesterday, the NCUA issued Letter to Credit Unions No. 19-CU-01, to outline its primary areas of supervisory focus for 2019 and to help credit unions prepare for their next NCUA exam.
    Jan 9, 2019
  • PolicyAid quarterly updates announcement

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Jan 3, 2019
  • CFPB announces 2019 HMDA and "small creditor" exemption amounts

    NEWS:  The Consumer Financial Protection Bureau (CFPB) has released its annual updates to two regulatory exemption amounts that affect credit unions making mortgage loans.
    Jan 2, 2019
  • Updated ii Release No. 0130 helps manage tax reporting rules

    ANALYSIS: The League has posted updated ii Release No. 0130 - Annual Reporting Deadlines to its website, revised with details of 2018 reporting requirement for IRS and Wisconsin information returns, employer reporting rules, and other deadlines. Please be sure that the release is shared with others in the credit union who may need the information.
    Dec 28, 2018
  • OCU examiners review liquidity in state credit unions

    NEWS:  The Office of Credit Unions recently alerted state-chartered credit unions that examiners have expanded their analysis of credit unions with low levels of liquidity. General Letter CU-5-18 (available here) observes that many credit unions have stressed liquidity levels at this time. The September 20, 2018 loan-to-share ratio for Wisconsin credit unions is 97.17%. The examiners' expanded analysis will look at how a credit union measures, monitors, and manages liquidity and liquidity risk. 
    Dec 27, 2018
  • League files "friend of court" briefs in two appellate cases

    NEWS:  This week The League jointly filed "friend of the court" (amicus curiae) briefs in two cases on issues of importance for Wisconsin credit unions. 


    Dec 21, 2018
  • Escrow interest rate increases to 0.18% for 2019

    NEWS:  Escrow interest rate increases to 0.18% for 2019

    The Wisconsin Department of Financial Institutions has announced that the 2019 mandatory interest rate on certain required escrow accounts originated prior to April 18, 2018 will increase to 0.18% (up from 0.15% in 2018). 


    Dec 20, 2018
  • What laws require periodic statements?

    Q&A:  Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer.

    Q.  I'm looking for information on periodic statements. What are the applicable laws we need to look at about providing statements?

    A.  All sorts of periodic statement rules can apply, on both the account side and the lending side. Information on periodic statements can be found in several of The League's ii Releases, depending on the types of accounts or loans involved. Here is a quick summary: 


    Dec 11, 2018
  • What's the difference between certificates of deposit and share certificates?

    Q&A:  Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer.

    Q.  I'm trying to find anywhere in the Wisconsin Credit Union League or NCUA sites (and CUNA) to see if we can use the term 'Certificate of Deposit' or 'CD' in a written advertisement?  We are state chartered and federally insured.

    A.  In almost all cases, it would be inappropriate for a credit union (whether state-chartered or an FCU) to use "certificates of deposit" or "CDs" in its ads, as well as its forms and disclosures. The NCUA's "Official Staff Interpretations" to its Truth in Savings rules say: "The term 'certificate of deposit' or 'CD' may not be used to describe share certificates and other dividend-bearing term share accounts."


    Dec 6, 2018
  • Help The League and CUNA fight for creditors’ rights in Wisconsin Supreme Court

    NEWS:  The League and CUNA are working together to help fight for creditors’ rights in a case that’s pending before the Wisconsin Supreme Court, and we need some input from you.
    Dec 3, 2018
  • "Day of Mourning" not a federal holiday for rescission purposes

    Q&A:  Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer.

    Q. The White House has proclaimed Dec. 5 as a “National Day of Mourning” in honor of the recent death of the 41st President, George H.W. Bush. This means that federal agencies and stock markets will be closed. Do we need to treat Dec. 5 as a federal holiday when preparing our “Right to Cancel” disclosure? 

    A. The short answer is no. 


    Dec 3, 2018
  • OCU announces it is holding joint borrower letter “in abeyance”

    NEWS:  The Wisconsin Office of Credit Unions announced today that it will not enforce General Letter CU 4-18 for now, except in cases where a loan is made to a single non-member.
    Nov 30, 2018
  • OCU continues review of letter on non-member joint borrowers

    NEWS:  The Credit Union Review Board held its regularly scheduled quarterly meeting this morning to address, among other things, the status of General Letter CU 4-18. As you’ll recall, the Wisconsin Office of Credit Unions issued that letter in September, requiring all co-borrowers on credit union loans to be members. The League disagrees with that requirement, and we sent a memo to the OCU last week to spell out our legal analysis.
    Nov 27, 2018
  • State drops escrow interest rule for mortgages originated April 18, 2018 and after

    ANALYSIS:  A change in state law did away with Wisconsin's requirement to pay interest on required escrow accounts for new residential mortgage loans originated on or after April 18, 2018. The League has already updated ii Release No. B047 to reflect this change, and you may have read about it in a recent Transmittal Sheet. This Courier takes a closer look at the change to Wis. Stats. §138.052(5) and what it may mean for your credit union's first mortgage or equivalent lien residential mortgage loans. 
    Nov 21, 2018
  • League provides legal memo to OCU on non-member joint borrowers

    ANALYSIS:  The League sent a memo to the Wisconsin Office of Credit Unions (OCU) this week, explaining why we believe non-members may legally be joint borrowers on credit union loans. You can access a copy of that new memo here. It was sent in preparation for an upcoming Credit Union Review Board meeting,
    Nov 20, 2018
  • It’s official: CECL standards delayed to 2021

    NEWS:  Back in June of 2016, The League sent a Courier out to let credit unions know that the Financial Accounting Standards Board (FASB) had issued a new Accounting Standards Update (ASU) called the Current Expected Credit Loss (CECL) standard. Originally, it was to be effective for credit unions for annual periods beginning after Dec. 15, 2020.
    Nov 19, 2018
  • Repossession requires the right notices

    TIP:  CUNA held its annual Attorney's Conference recently, and as always, it included helpful updates on legal issues impacting credit unions nationwide. One session featured attorneys from CUNA Mutual Group, discussing trends in claims and litigation involving credit unions. They mentioned an area of concern that caught us by surprise: An “uptick” in claims alleging that credit unions sent out faulty notices of their intent to sell repossessed collateral.
    Nov 14, 2018
  • Check SCRA database before self-help repossession & update policies

    TIP:  Wisconsin law allows self-help repossession of motor vehicles, but there are important limits. A big one is that credit unions should always get a court order for repossession – and not even try the self-help route – if the borrower is (or recently has been) on active duty and took out the motor vehicle loan before entering the service.
    Nov 13, 2018
  • Compliance Couriers are getting an upgrade

    ALERT: For years, The League's Legal Affairs team has published Compliance Couriers to alert Wisconsin credit unions about significant compliance news. Now, we're expanding the scope of the Couriers in a few ways.
    Nov 12, 2018
  • Take steps to mitigate your overdraft risks

    We've all heard about the flurry of recent class-action lawsuits across the country, alleging that credit unions have improperly assessed overdraft fees. At least one Wisconsin credit union has been the target of such a lawsuit. In addition, the New York Times recently ran a story critical of the high fees – particularly for overdrafts – charged by a Maryland-based credit union to lower wage earning Marriott employees. 
    Nov 2, 2018
  • Credit Union Review Board discusses co-borrower issue; enforcement remains on hold for now

    The Credit Union Review Board met last week to discuss the Office of Credit Unions’ (OCU’s) General Letter CU 4-18. As you know, that Sept. 18 letter stated that the OCU reads state law as requiring all co-borrowers on loans by state-chartered credit unions to be credit union members. We covered CU 4-18 in this Compliance Courier.
    Oct 29, 2018
  • Regulators: Credit unions can collaborate on BSA/AML compliance

    The NCUA and other federal regulators, along with the U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) have issued a statement about certain credit unions and banks collaborating to share resources to better manage their Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance obligations.


    Oct 4, 2018
  • OCU will not immediately enforce co-borrower letter

    Good news from Madison!

    As you know, on Sept. 19, the Wisconsin Office of Credit Unions (OCU) issued General Letter CU 4-18. As we explained that day in a Compliance Courier, the letter stated that the OCU reads state law as requiring all co-borrowers on loans by state-chartered credit unions to be credit union members. The OCU wrote that its interpretation applied "effective immediately and going forward." 


    Oct 1, 2018
  • PolicyAid announces quarterly updates

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Sep 28, 2018
  • Free credit freezes debut tomorrow, Sept. 21

    Starting tomorrow, Sept. 21, the three major consumer credit bureaus will be required to offer free credit freezes to consumers and their dependents.
    Sep 20, 2018
  • OCU says that joint borrowers must be credit union members

    The Wisconsin Office of Credit Unions (OCU) says it reads state law as requiring all co-borrowers on loans by state-chartered credit unions to be credit union members. The interpretation is the topic of the OCU's General Letter CU 4-18, which was sent today to credit union presidents statewide. The letter is posted on the OCU's Credit Union Letters webpage.
    Sep 19, 2018
  • Federal Reserve finalizes Reg. CC liability rule

    Earlier this week, the Federal Reserve Board published a final rule that amends Reg. CC to address liability when banks or credit unions have a dispute about whether an electronic check or substitute check has been altered or whether the signature on the item was forged.
    Sep 14, 2018
  • FinCEN grants permanent exception from Beneficial Ownership Rule for certain renewals & rollovers

    Last Friday, the day a temporary exception was set to expire, the Financial Crimes Enforcement Network (FinCEN) granted a permanent exception from its Beneficial Ownership Rule for rollovers or renewals of certain financial products and services. 
     
    FinCEN's ruling, FIN-2018-R003, replaces a previous temporary exception, which was to expire on Sept. 8, 2018, as we reported in this Compliance Courier from August. 
    Sep 10, 2018
  • CFPB issues interpretive rule to help clarify HMDA partial exemptions

    Today, the Consumer Financial Protection Bureau (CFPB) issued a new interpretive and procedural rule to implement and clarify recent changes to the Home Mortgage Disclosure Act (HMDA).
    Aug 31, 2018
  • CFPB updates 2019 dollar amounts for credit card penalties, HOEPA triggers and QM limits

    The Consumer Financial Protection Bureau (CFPB) has released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures go into effect Jan. 1, 2019. Please see the final rule for complete details.
    Aug 29, 2018
  • FBI warns of ATM "cash-out," says small/medium institutions at higher risk

    The Federal Bureau of Investigation (FBI) is warning financial institutions that cybercriminals plan to carry out a highly choreographed, global fraud scheme known as an "ATM cash-out," which could result in millions of dollars being withdrawn from ATMs around the world.
    Aug 14, 2018
  • Reg. P amended to match GLBA exception for annual privacy notices

    The CFPB has issued final amendments to Reg. P, the federal privacy rules that apply to credit unions and other financial institutions. The amendments implement changes that Congress made to the Gramm-Leach-Bliley Act (GLBA) in 2015, providing an exception to the annual privacy notice requirement for credit unions and other financial institutions that meet certain requirements. This Reg. P change was proposed in 2016, and The League commented in favor of it.  
    Aug 13, 2018
  • FinCEN extends further relief regarding beneficial ownership rule for rollover/renewal products

    The Financial Crimes Enforcement Network (FinCEN) announced this week that it is extending the limited exception it had granted earlier from the obligations of the Beneficial Ownership Rule for rollover or renewal of certain financial products and services. A previous extension expired on August 8; the new extension is through September 8, 2018. This may affect member share certificates, non-member certificates of deposit, and loan products held at credit unions by covered legal entities. 
    Aug 10, 2018
  • League offers summary of Economic Growth Act's key provisions

    The Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA or the Act) of 2018 (S. 2155, P.L. 115-174) was signed into law on May 24, 2018. Designed to reduce regulatory burdens, it includes a long list of provisions that affect credit unions. This Courier summarizes significant sections that Wisconsin credit unions should be aware of.
    Jul 20, 2018
  • Federal regulators issue guidance on HMDA changes

    As you've heard, the federal Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), which was recently signed into law, provides partial exemptions for some insured credit unions from certain requirements under the Home Mortgage Disclosure Act  (HMDA) and Reg. C. Section 104 of the Act says that the partial exemptions are generally available: 
    Jul 13, 2018
  • Quarterly PolicyAid updates

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Jun 29, 2018
  • NCUA expands merger rule to FISCUs

    The NCUA board has amended its rule on mergers, extending the entire rule to cover federally insured, state-chartered credit unions as well as federal credit unions (FCUs). The final rule will apply to new merger applications submitted after Oct. 1, 2018. 
    Jun 25, 2018
  • NCUA's MBL rule amendment has limited impact in Wisconsin; many other S.2155 changes not effective yet

    Last week, the NCUA finalized regulations clarifying that mortgage loans secured by non-owner occupied 1- to 4-family homes are no longer counted as Member Business Loans for purposes of the MBL cap under the NCUA's regulations. The change was made in accordance with S.2155 – also known as the Economic Growth Act – the federal legislation recently signed into law that rolled back several provisions of the Dodd-Frank Act. 


    Jun 6, 2018
  • NCUA: Federal law preempts Wisconsin law, allowing credit unions to use "bank"

    The League has scored a win for Wisconsin credit unions, as the National Credit Union Administration (NCUA) issued a formal Legal Opinion Letter protecting the ability of Wisconsin credit unions to use the term "bank" as a verb in advertisements, websites, social media and other communications. 


    May 15, 2018
  • New ii Release covers The League's prize-linked savings program – Saver's Sweepstakes™

    The League's Legal Affairs Department today published a new ii Release to help participating credit unions understand Saver's Sweepstakes, The League's statewide prize-linked savings program.

    Our ii Release No. 0184 – "Saver's Sweepstakes Compliance FAQs" – features more than 100 frequently asked questions, covering a range of topics:


    May 7, 2018
  • Wisconsin resuming Medicaid data match program

    Credit unions have received letters from the Wisconsin Department of Health Services (DHS) and from its new vendor, Accuity Asset Verification Services (Accuity), regarding the resumption of Wisconsin’s Medicaid Assets Verification Data Matching Program (Medicaid data match). 


    May 3, 2018
  • Update: TRID "black hole" changes take effect June 1

    The League recently alerted you that the CFPB has finalized amendments to fix the so-called “black hole” timing problem in the TILA-RESPA mortgage disclosure rules. That amendment has now been officially published, and it will become effective on June 1, 2018. 

    May 3, 2018
  • CFPB fixes TILA-RESPA “black hole”

    This week, the CFPB published an amendment to its Truth in Lending / Real Estate Settlement Procedures Act Integrated Loan Disclosure Rule (a/k/a the TILA-RESPA Rule or TRID). The change fixes what some have dubbed the “black hole” in the current rule by removing a limit on a creditor’s ability to reset tolerances with a Closing Disclosure (CD) shortly before closing.

    May 2, 2018
  • Wisconsin updates Transfer by Affidavit law (again) and mortgage payoff law

    2017 Wisconsin Act 332 took effect on April 17, making a few changes to Wisconsin laws on the Transfer by Affidavit process and on mortgage payoff statements.

     


    Apr 23, 2018
  • NCUA adds flexibility to advertising rules

    Credit unions will get a bit more flexibility and regulatory relief in complying with the NCUA’s advertising requirements under amendments to Part 740 of the NCUA rules, recently approved by the NCUA Board. 

    The amendments will take effect 30 days after they are officially published in the Federal Register, which should happen in the next few weeks.


    Apr 20, 2018
  • PolicyAid quarterly updates

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Apr 6, 2018
  • OCU issues letter on loan purchases

    Wisconsin’s Office of Credit Unions has issued a new General Letter CU 2-18, alerting credit unions to issues that examiners have spotted involving several credit unions purchasing non-member loans (either individually or in a pool of loans). The letter stresses two points:
    Apr 5, 2018
  • CFPB amends Mortgage Servicing Rule on periodic statements & bankruptcy

    The CFPB recently amended its Mortgage Servicing Rule, simplifying the timing requirements for transitioning between unmodified periodic statements and modified statements for consumers in bankruptcy.  
    Mar 20, 2018
  • Is a revised customer notice required for the CDD rule on May 11?

    Some credit unions have been asking whether they need updated signage for the Customer Due Diligence rules, effective May 11, 2018. They wonder whether the standard language for the notice must be updated to reference gathering information on beneficial owners and controlling persons of legal entities.
    Mar 13, 2018
  • CFPB updates rural - underserved counties lists

    The CFPB has revised the lists of counties that it considers to be "rural" and to be "rural or underserved" for 2018. The full lists can be found here. There is one change for Wisconsin: In 2018, Menominee County appears on the list of "rural or underserved" counties, as it did in 2017; however, it has been removed from the list of "rural" counties for 2018.
    Mar 6, 2018
  • CFPB delays Prepaid Accounts Rule to April 1, 2019

    Yesterday, the Consumer Financial Protection Bureau (CFPB) published amendments to its Prepaid Accounts Rule, delaying its effective date to April 1, 2019. 

    Please see this Compliance Courier for information on the original rule, which was finalized in 2016. It was supposed to take effect on Oct. 1, 2017, but was delayed last year until April 1, 2018. Yesterday’s amendment delays it for another year.
    Jan 26, 2018
  • OCU issues supplemental call report instructions for business lending

    In response to a request for guidance from The League, The Wisconsin Office of Credit Unions (OCU) today issued General Letter CU 1-18 "5300 Call Report Instructions Supplement" regarding the business & commercial lending page of the 5300 call report (page 16).
    Jan 22, 2018
  • New rate spread calculator available for 2018 HMDA reporting, plus HOEPA & HPML calculations

    Three different regulations can require credit unions to compare the APR on a mortgage loan against the Average Prime Offer Rate (APOR), a national average of comparable prime mortgage rates:
    Jan 17, 2018
  • Wisconsin allows prize-linked savings; League working on statewide program

    As you've probably heard, Wisconsin recently passed a prize-linked savings (PLS) bill into law. The new law lets Wisconsin credit unions and other financial institutions offer PLS programs, where consumers earn entries to prize drawings by making deposits into qualified savings accounts.
    Jan 9, 2018
  • ii Release No. 0130 - Annual Reporting Deadlines is updated

    NOTE:

    Since the date of this Compliance Courier, the 2018 IRS Circular E has been published, and ii Release 0130  has been updated to reflect that fact.

    ii Release No. 0130 - Annual Reporting Deadlines, is extensively updated to help credit unions review IRS and other periodic reporting requirements. Much of the information focuses on IRS reporting for the 2017 tax year. Normally the ii Release includes updated employment reporting requirements for the new year, from IRS Circular E, Employer's Tax Guide (Publication 15). However, the 2018 version of Circular E is not yet available, because of the December 2017 tax code changes. We will update the Circular E information when the IRS posts the 2018 version of the document at this webpage. Currently, the link goes to the 2017 form. 


    Jan 5, 2018
  • PolicyAid announces its quarterly updates

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Jan 2, 2018
  • Mistakes you'd rather not make in a HELOC program

    Please make sure your HELOC program does not make these serious mistakes.
    Dec 27, 2017
  • CFPB announces 2018 HMDA and “small creditor” exemption amounts

    The Consumer Financial Protection Bureau (CFPB) has released its annual updates to two regulatory exemption amounts that affect credit unions making mortgage loans: the asset-size exemptions for collecting Home Mortgage Disclosure Act (HMDA) data and for lenders to be considered “small creditors” under certain provisions of 
    Reg. Z. 
    Dec 27, 2017
  • Escrow interest rate increases to 0.15% for 2018

    The Wisconsin Department of Financial Institutions has announced that the 2018 mandatory interest rate on required escrow accounts will increase to 0.15% (up from 0.14% in 2017).
    Dec 21, 2017
  • Military Lending Act guidance updated

    The Department of Defense (DoD) today published updated Military Lending Act (MLA) guidance, addressing some of the lingering compliance questions that have surrounded its MLA rules.
    Dec 14, 2017
  • Correction: Waiting period for Transfer by Affidavit form

    A Compliance Courier sent last Friday ("More people can use Transfer by Affidavit form under change to state law") included an outdated reference to a 10-day waiting period in its "background" material on Wisconsin's Transfer by Affidavit statute. (The Transfer by Affidavit form allows someone to claim a deceased person's property in Wisconsin without having to go through a probate court case, if the person who died left a relatively small estate.) 
    Dec 13, 2017
  • More people can use Transfer by Affidavit form under change to state law

    Governor Walker has signed 2017 Wisconsin Act 90. Effective Dec. 1, 2017, it allows Wisconsin's Transfer by Affidavit form to be signed by someone who is named in a will to act as a personal representative. This change expands the pool of people who could potentially sign and present those affidavits to claim funds from a deceased member's credit union accounts.
    Dec 8, 2017
  • DOL delays parts of Fiduciary Rule to 2019

    The U.S. Department of Labor (DOL) has extended the transition period for parts of its Fiduciary Rule to take effect until July 1, 2019. 

    The Fiduciary Rule went into effect on June 9, 2017, but the effective date for certain parts of the rule was extended – initially until Jan. 1, 2018, and now until July 1, 2019. During the transition period, compliance is required with some, but not all, of the rule's provisions. For now, investment fiduciaries only have to meet the Fiduciary Rule's Impartial Conduct Standards, which require them to:


    Dec 1, 2017
  • Time may not be on your side with low-payment HELOCs

    Credit unions offering HELOCs with low minimum monthly payment levels may find they have set payments too low when they designed their plans, resulting in impermissible risk of negative amortization or slow-amortization at some point during the life of a plan.
    Dec 1, 2017
  • HMDA ii Release updated for 2018 changes

    The League has rewritten ii Release No. B017 – "Home Mortgage Disclosure Act." The release summarizes the basic requirements of the Home Mortgage Disclosure Act (HMDA) and Consumer Financial Protection Bureau (CFPB) Regulation C. The compliance requirements for HMDA and Reg. C change significantly as of Jan. 1, 2018, and the release now addresses those requirements. (Credit unions with questions about HMDA requirements for 2017 or earlier may contact Legal Affairs for help.)
    Nov 27, 2017
  • President signs resolution stopping CFPB arbitration rule

    President Trump has signed a Congressional resolution that blocks the Consumer Financial Protection Bureau's (CFPB's) recently finalized arbitration rule. As The League explained in this Aug. 22 Compliance Courier, the rule would have regulated pre-dispute arbitration agreements in contracts for certain consumer financial products and services entered into on or after March 19, 2018.
    Nov 2, 2017
  • Comment before Nov. 16 on the proposed state business lending rules

    The League is asking all credit unions - even those that do not do much business lending – to consider commenting on the state’s proposal to overhaul its rules on commercial and member business loans (MBLs) for state-chartered credit unions. From CUs presidents to staff, we can all have an impact on this important rule.
    Oct 30, 2017
  • Pressure from lawsuits requires action on website accessibility under ADA

    Although federal regulations have never offered guidance on how to bring websites into compliance with the Americans with Disabilities Act (ADA), lawsuits are now applying considerable pressure on businesses to move forward. In recent months, at least nine credit union and many other businesses around the country have been sued on claims that their Internet sites present barriers to use by those with disabilities. 
    Oct 20, 2017
  • OCU updates Wisconsin Model Credit Union Bylaws

    The Wisconsin Office of Credit Unions (OCU) has updated its Model Bylaws for state-chartered credit unions, reflecting changes in the Wisconsin Statutes on credit unions and modernizing many provisions.

    The League urges all credit unions to adopt the 2017 Model Credit Union Bylaws, tailoring them as needed to match your credit union’s unique policies and procedures.
    Oct 10, 2017
  • CFPB issues final payday lending rule

    This week the CFPB finalized the Payday, Vehicle Title, and Certain High-Cost Installment Loans rule.   Click here for the CFPB's executive summary of the rule.  The rule will be codified at 12 CFR 1041 and  will generally take effect in August, 2019, 21 months after publication in the Federal Register.  It governs the underwriting of certain personal loans with short term or balloon-payment structures, as well as lenders' payment withdrawal practices for those loans and certain additional installment loan products. The rule also mandates processes and criteria for registration of information systems. 

    Credit unions will be pleased that the CFPB addressed many of the concerns and objections that CUNA, The League, and credit unions expressed to the rule as originally proposed. Careful review is needed but credit unions are likely to find that most, if not all, of their loan products are exempt - or can be tweaked to make them exempt. But the prospects look good for curtailing abusive payday lending with minimal impact on credit unions serving their members' needs. 


    Oct 6, 2017
  • Coming Soon: Improvements & Updates to PolicyAid

    Some changes are being made to PolicyAid, the dues-supported online policy library that The League makes available to all of its member credit unions. 

    PolicyWorks (the company that provides the PolicyAid service) alerted its users to watch for these improvements and updates in November:


    Oct 6, 2017
  • Federal court permanently blocks overtime rules

    A U.S. District Court in Texas has ruled against the Department of Labor's (DOL's) rules for overtime pay, permanently enjoining the implementation of these rules nationwide. The 2016 rules would have added a number of compliance burdens for credit unions and more than doubled – from $23,660 to $47,476 – the minimum annual salary required to qualify for the Fair Labor Standards Act's (FLSA's) "white collar" exemptions to federal overtime rules. 
    Sep 7, 2017
  • New HMDA changes include temporary increase in HELOC exemption from 100 to 500

    The Consumer Financial Protection Bureau (CFPB) has published changes to its Home Mortgage Disclosure Act (HMDA) rules (known as Reg. C). 

    HMDA requires certain institutions to collect, report, and disclose information about their mortgage lending activity, helping federal authorities spot potentially discriminatory lending patterns. 

    Aug 24, 2017
  • Arbitration agreements rule prohibits waiver of class action rights

    Note: This regulation is no longer effective. See The League’s Nov. 2, 2017 Compliance Courier for details.

    The Consumer Financial Protection Bureau (CFPB) has issued a final rule to regulate pre-dispute arbitration agreements in contracts for certain consumer financial products and services. The Arbitration Agreements Rule only applies to pre-dispute arbitration agreements for covered products or services entered into on or after March 19, 2018. 

    As of that date, most covered arbitration agreements must include the following statement:

    "We agree that neither we nor anyone else will rely on this agreement to stop you from being part of a class action case in court. You may file a class action in court or you may be a member of a class action filed by someone else."

    Variations on the above language are required in some situations.


    Aug 22, 2017
  • CFPB finalizes long list of TRID updates & proposes more

    The CFPB recently finalized updates to its TILA-RESPA Integrated Disclosure (TRID) rules, making quite a few technical clarifications and corrections. Click here for the full text. Click here for the CFPB's executive summary of the changes. 
     
    The amendments will take effect 60 days after they are officially published in the Federal Register, but compliance will be optional until Oct. 1, 2018. 
     
    The changes to the TRID rules largely formalize guidance that the CFPB previously provided. Among other changes, the CFPB highlighted these provisions: 


    Jul 27, 2017
  • Medicaid data match program to be temporarily interrupted as of July 31, 2017; other data match requirements not affected

    Credit unions are receiving letters this week from the Wisconsin Department of Health Services (DHS), regarding an interruption in its Medicaid Assets Verification Data Matching Program (Medicaid data match). 

    The DHS letter explains that it is transitioning to a new vendor that will handle the Medicaid data match:


    Jul 20, 2017
  • USCIS issues revised I-9 Employment Eligibility Verification form

    The United States Citizenship and Immigration Services ("USCIS") released a revised version of Form I-9, Employment Eligibility Verification, on July 17 (with instructions on how to download the form). 


    Jul 19, 2017
  • PolicyAid has announced the quarterly additions & updates to its sample compliance policies

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 100 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 
    Jul 3, 2017
  • Division of Banking: Non-banks like CUs can't use the word "bank" in any form (except "on-line banking" or "mobile banking")

    The League has long cautioned credit unions that a Wisconsin Statute bars non-banks from 1) using the term "bank" in office signs and 2) using forms or written/printed materials that indicate the credit union's business is that of a bank.

    The Wisconsin Department of Financial Institutions Division of Banking has now released "Banking Letter 50: Use of the word 'bank' under s. 221.0402, Stats." That interpretive letter sheds new light on the Division of Banking's strict interpretation of the statute and the language that it says non-bank businesses (such as credit unions) may and may not use.


    Jun 15, 2017
  • Fed updates Reg. CC check collection & return rules, proposes other amendments

    The Federal Reserve has announced amendments to certain Reg. CC rules on check collection and returns, effective July 1, 2018. The amendments will not affect other parts of Reg. CC on funds availability schedules and disclosures.

    The Fed explained that the changes were needed to keep pace with electronic check return systems.


    Jun 1, 2017
  • FinCEN changes to CTR in August, 2017

    In August, the Currency Transaction Report (CTR) available on the Bank Secrecy Act (BSA) e-filing system will be updated as announced by FinCEN. These changes were posted in this Federal Register notice in February, 2016. The changes do not add new regulatory requirements or changes to the requirements related to currency transaction reporting, but are more technical changes to help in reporting. New or updated data fields will be added and batch filers will be required to submit the updated CTR data in an XML based file, rather than the current ASCII based fixed-length delimited file.  
    May 31, 2017
  • Prepaid Rule delayed to April 1, 2018

    The CFPB has announced the release of a new final rule that delays the effective date of its consumer protections for prepaid accounts (known as the "Prepaid Rule") by six months, from Oct. 1, 2017 to April 1, 2018. 

    The CFPB also decided to revisit at least two substantive issues in the Prepaid Rule through a separate notice and rulemaking process. They expect to release that proposal in the coming weeks.


    Apr 21, 2017
  • Fiduciary rule delayed to June 9

    The U.S. Department of Labor (DOL) has announced a 60-day extension of the applicability dates of the "fiduciary rule" and related exemptions. Today's announcement follows a presidential memorandum that directed the DOL to examine the fiduciary rule to ensure that it does not adversely affect the ability of Americans to gain access to retirement information and financial advice.

    The rule defines who is considered a fiduciary investment adviser, describes the kinds of communications that constitute investment advice, and makes exemptions to permit investment advice fiduciaries to continue to receive compensation under certain circumstances.


    Apr 5, 2017
  • Are your ATMs and website ADA compliant?

    Under the federal Americans with Disabilities Act (ADA), all "places of accommodation" must be accessible to those with disabilities. This doesn't just apply to physical spaces, such as a credit union's lobby; electronic services have to comply with the ADA, too. 

    In recent years, many financial institutions – including credit unions – around the country have been sued for alleged ADA violations. In particular, plaintiffs claim that websites and ATMs do not provide equal access for disabled users. 

    Credit unions should take steps to assess their ADA compliance, working closely with their vendors and IT support to ensure that ATMs, websites and other electronic services allow access for all users.


    Mar 21, 2017
  • Redact confidential information – including account numbers – from court filings

    Wisconsin credit unions should take steps to ensure that court-filed documents do not contain certain confidential information, including account numbers, Social Security Numbers, and driver's license numbers. Including such information – even on copies of documents attached as exhibits to court filings – could violate both state and federal laws.
    Mar 21, 2017
  • Forms Update: League introduces new Declaration of Loss form for lost, stolen, or destroyed official checks

    The League now offers a Claim and Declaration of Loss for Lost, Stolen, or Destroyed Credit Union Cashier's Check or Teller's Check form for use under Wisconsin law.

    The form can be used with proper procedures to protect the credit union from liability on its own cashier's or teller's check while accommodating a remitter or payee who claims that they had possession of the check when it was lost, stolen, or destroyed. The procedure requires the credit union to honor the lost, stolen, or destroyed check if presented before the claim becomes enforceable 90 days after the check was issued.

    Form WCUL #83000 is now available for download and purchase online at Miscellaneous Forms & Supplies. The license to use the form is for a calendar year. Sample images can be found on The League's website here.


    Mar 10, 2017
  • New I-9 Forms Must Now Be Used

    U.S. Citizenship and Immigration Services (USCIS) has published a revised version of Form I-9, Employment Eligibility Verification. As of Jan. 22, 2017, employers must use only the new version, dated 11/14/2016.
    Jan 30, 2017
  • PolicyAid announces quarterly update

    PolicyAid has announced the quarterly additions & updates to its sample compliance policies.

    All League members enjoy free access to PolicyAid as part of your dues-supported services (a $799 annual value.) PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 80 sample policies that you can download and adapt to fit your operations. The compliance experts at PolicyWorks amend the policies to keep current with changing regulations, Letters to Credit Unions, AIRES questionnaires, and best practices. 


    Jan 6, 2017
  • Your 1099-C burden just got lighter

    Just in time for the 2016 information return filing season, the IRS has repealed one of the most confusing triggers for filing Form 1099-C Cancellation of Debt.
    Jan 4, 2017
  • CFPB announces 2017 HMDA and "small creditor" exemption amounts

    The Consumer Financial Protection Bureau (CFPB) has released its annual updates to two regulatory exemption amounts that affect credit unions doing mortgage lending. 

    HMDA exemption threshold remains at $44 million 

    The CFPB has published its annual notice of the asset-size exemption threshold for depository institutions under Reg. C, which implements the Home Mortgage Disclosure Act (HMDA). The asset-size exemption for depository institutions will remain unchanged at $44 million, effective Jan. 1, 2017. 

    This means that depository institutions (including credit unions) with assets of $44 million or less as of December 31, 2016, are exempt from collecting data in 2017. An institution's exemption from collecting data in 2017 does not affect its responsibility to report the data it may have been required to collect in 2016. 

    HMDA and the CFPB's Reg. C require most mortgage lenders located in metropolitan areas to collect, report, and disclose data about applications for, and originations and purchases of, certain mortgage loans. 


    Dec 27, 2016
  • Releases updated to address new Customer Due Diligence rules

    The League has updated a number of its ii Releases to address the Customer Due Diligence (CDD) rules finalized this year by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

    FinCEN's Bank Secrecy Act / Anti-Money Laundering (BSA/AML) regulations require credit unions and other covered institutions (including banks) to have written, risk-based procedures for conducting CDD as part of their BSA/AML compliance programs. Compliance is mandatory as of May 11, 2018. (Prior to 2018, FinCEN did not explicitly require credit unions or other covered financial institutions to engage in CDD, though regulators and examiners expected it and said it was "implicitly required" by BSA suspicious activity reporting obligations.)
    Dec 22, 2016
  • Take care to implement HELOC and ARM rate changes accurately

    A popular variable rate mortgage rate index, The Wall Street Journal prime rate, inched up from 3.50% to 3.75% on December 15, 2016. A virtually identical index used by other lenders, the bank prime loan rate reported in the Federal Reserve Board's H.15 Selected Interest Rates, had the same change on the same date.

    For both prime rate indexes, this is the first time rates budged in nearly a year  and only the second time in nearly eight years. Other popular mortgage indexes have adjusted more often. Lenders may be a bit out of practice with sending out variable rate adjustment notices. They may be unprepared for the complications – especially under Wisconsin law.

    The effects of the rate index changes on your adjustable rate loan programs may be very different from the effects on other lenders. The rate changes, if any, required for your existing loan products will depend on the variable rate clause in your loan agreement and the specific terms provided. The timing and content of your rate change notices, if any, will depend on both the loan agreement and applicable law.


    Dec 21, 2016
  • Escrow interest rate to remain at 0.14% for 2017

    The Wisconsin Department of Financial Institutions has announced that the 2017 mandatory interest rate on required escrow accounts will remain at 0.14% (unchanged from 2016).
    Dec 8, 2016
  • Temporary injunction blocks Dec. 1 overtime rules

    A federal judge in Texas has blocked implementation of the Department of Labor's (DOL) new federal overtime rules, which were scheduled to take effect next week, on Dec. 1. The DOL's overtime rules, finalized last May, raised the threshold for overtime pay eligibility to more than twice the current rate, from $23,660 to $47,476. 
    Nov 23, 2016
  • CFPB updates rural/underserved counties lists

    The CFPB has revised the lists of counties that it considers to be "rural" and to be "rural or underserved" for 2017. The full lists can be found here. There is one change for Wisconsin:  Menominee County has again been added to the "rural or underserved" counties list, but not to the "rural" counties list. 

    The lists impact various mortgage lending regulations.


    Nov 17, 2016
  • CFPB Consent Order on Navy Federal CU's Collections Practices Raises UDAAP issues

    The Consumer Financial Protection Bureau (CFPB) recently announced a  Consent Order against Navy Federal Credit Union, which must pay $28.5 million for "unfair, deceptive or abusive" acts or practices (UDAAP). The Consent Order cited Navy Federal for a variety of debt collection practices, including improperly restricting members' electronic account access.
    Nov 10, 2016
  • NCUA provides Interest Rate Risk Supervision guidance

    The NCUA recently announced that, effective January 1, 2017, it will institute changes to the agency's interest rate risk review procedures and adopt a standardized measurement of interest rate risk to scope and rate interest rate risk assessments more efficiently and effectively.
    Oct 27, 2016
  • Forms Update: WCUL forms aid MLA compliance

    The League is releasing updated versions of various WCUL forms to help credit unions comply with the newly effective regulations implementing the Military Lending Act ("MLA"). Each appropriate form will be emailed in the next few business days at no charge to credit unions that have a current (2016) subscription to the corresponding non-MLA WCUL loan form.

    MLA compliance is required for loans to military service members and their dependents closed on or after October 3, 2016. See ii Release No. B067 - Lending to Servicemembers for details. 

    The League had previously released MLA versions of six WCUL forms. Those are still compliant, but five of the six are now being replaced with improved forms, based on recent Department of Defense guidance. The major improvements over the 6/16 WCUL versions of these forms include the addition of a Notice of Credit Union's Statutory Lien and language giving a limited ability to take a specific pledge of shares. 

    An additional MLA loan form is offered for use for some land loans to covered borrowers. Also, our standard account forms for all members are revised to include an exception, to the extent required by MLA, to the setoff language.   

    Contents​

    • Forms updated
    • Military Lending Act overview
    • Disclosures 
    • Limitations
    • Descriptions of changes to specific forms 
      • Lending Forms
      • Account Forms
    • What about HELOC and business loan forms?
    • Use of WCUL fillable .pdf forms
    • Important reminders

    Oct 7, 2016
  • CFPB issues new prepaid card rule, effective Oct. 1, 2017

    The CFPB has issued its final prepaid card rule under Reg. E (the Electronic Fund Transfer Act rules) and Reg. Z (the Truth in Lending Act rules). They will generally apply to prepaid accounts starting Oct. 1, 2017. 
    Oct 6, 2016
  • PolicyAid announces quarterly updates

    The quarterly additions & updates to PolicyAid sample compliance policies have been announced.
    Oct 6, 2016
  • Military Lending Act resources include forms, MAPR calculators, exam procedures

    A variety of resources are available to help Wisconsin credit unions comply with the new Military Lending Act rules taking effect Monday, Oct. 3.  

    The League's MLA forms

    The League is nearing completion of further updates to MLA versions of certain WCUL loan documents. Subscribers received MLA versions of the League forms in July, as described in this Compliance Courier: Forms Update: Use League's MLA forms for Servicemembers and their dependents starting October 3rd. Those forms bear a 6/16 revision date and may be used for covered borrowers starting October 3, 2016. 

    By early next week you will receive a Compliance Courier with descriptions and links to drafts of even newer forms. Delivery of the forms to existing subscribers will follow soon thereafter. The newer loan forms will include a statutory lien on member shares to provide some relief for the removal of typical setoff language. More details will be provided in the Compliance Courier. 


    Sep 30, 2016
  • Department of Defense releases guidance on the Military Lending Act - better late than never!

    The U.S. Department of Defense issued important guidance just last week regarding the updated Military Lending Act ("MLA") regulation which will generally take effect on October 3, 2016. The guidance is in the form of a series of 19 questions and answers. The questions are provided later in this Compliance Courier, each linked to the appropriate answer.
    Aug 30, 2016
  • CFPB Amends Mortgage Servicing Rule, Expanding Foreclosure Protections

    The Consumer Financial Protection Bureau (CFPB) has finalized changes to its mortgage servicing rule. The updated rule requires servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, clarifies borrower protections when the servicing of a loan is transferred, and provides important loan information to borrowers in bankruptcy. The changes also help ensure that surviving family members and others who inherit or receive property generally have the same protections under the CFPB's mortgage servicing rules as the original borrower. 
    Aug 4, 2016
  • Forms Update: Use League's MLA forms for Servicemembers and their dependents starting October 3rd

    The League is now releasing Military Lending Act ("MLA") versions of six WCUL loan documents. Each appropriate form will be emailed in the next few business days at no charge to credit unions that have a current (2016) subscription to the corresponding existing WCUL loan form. 

    The MLA forms are designed for loans to military service members and their dependents with loans closed on or after October 3, 2016, when updated regulations take effect.


    Jul 15, 2016
  • The League adds Regulatory Advocacy area to website

    To help reduce the regulatory burden on Wisconsin credit unions, The League regularly submits comment letters to federal agencies on key regulatory changes that matter most to League members. 
    Jul 15, 2016
  • PolicyAid adds MLA policy, updates 5 other policies

    The quarterly additions & updates to PolicyAid sample compliance policies have been announced.
    Jul 12, 2016
  • CFPB updates 2017 dollar amounts for credit card penalties, HOEPA triggers and QM limits

    The Consumer Financial Protection Bureau (CFPB) recently released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures go into effect Jan. 1, 2017 (except as explained below). Please see the final rule for complete details.   
    Jun 22, 2016
  • Final CECL standards issued, including changes League sought

    The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) that changes financial reporting by credit unions and other organizations. Click here to read the full text. 

    The new standard – called the current expected credit loss (CECL) standard – uses an "expected loss" measurement for the recognition of credit losses. It replaces the various existing impairment models in U.S. generally accepted accounting principles, which typically use an "incurred loss" approach.  The change is designed to require timelier recording of credit losses on loans and other financial instruments. 
    Jun 17, 2016
  • NCUA publishes helpful "small creditor" resources

    As The League recently reported, The Consumer Financial Protection Bureau's (CFPB's) rules now make it significantly easier for credit unions to be "small creditors." The change took effect March 31. 

    On Wednesday, the NCUA issued a regulatory alert – which includes a helpful chart and a summary – to summarize the changes to those regulations. As explained in the Regulatory Alert, the NCUA's "chart and summary explain the changes, and the summary discusses steps to take if your credit union relies on provisions applicable to small creditors or creditors operating in a rural or underserved area."


    May 26, 2016
  • CUs must comply with new Customer Due Diligence rules by May 11, 2018

    The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has issued new final Customer Due Diligence (CDD) rules, to stop criminals and others from using U.S. companies to access financial systems anonymously in order to conceal money laundering, tax evasion, and other illicit activities. 

    The rules introduce a requirement to identify the beneficial owners of organizations that open credit union accounts. They also codify existing guidance on CDD – meaning CDD will be a regulatory requirement, not just a best practice. 

    Credit unions and other "covered financial institutions" will have to comply by May 11, 2018. 


    May 13, 2016
  • Memo: Act 304 modernizes Ch. 186 for state credit unions (4/19/2016)

    On March 30, 2016 Governor Walker signed into law legislation that streamlines, clarifies and makes more transparent the laws and regulations affecting 150 state-chartered credit unions.

    Wisconsin Act 304 updates portions of the state statute relating to Wisconsin's state-chartered credit unions, Chapter 186, and related provisions of the administrative code. It is the result of collaborative efforts by a study group of credit union presidents, The League's Government Affairs Committee, The League, and other stakeholders including the Office of Credit Unions (OCU).

    The Act took effect April 1, 2016. Various ii Releases are being updated at this time to incorporate the changes to the law. Act 304 makes the following...


    Apr 22, 2016
  • CFPB updates "small creditor" guidance

    As The League recently reported, The Consumer Financial Protection Bureau's (CFPB's) rules now make it significantly easier for credit unions to be "small creditors." The change took effect March 31.

    Among the tests for "small creditor" status, a credit union now only has to show that it originated at least one consumer loan secured by a first lien on a dwelling located in a rural or underserved area in the prior calendar year. Previously, credit unions had to show that they originated at least 50% of their first-lien, dwelling-secured, consumer loans in rural or underserved areas in the prior calendar year.

    The CFPB has now updated all of its guidance tools to reflect the change. Credit unions can use CFPB flowcharts and other resources to quickly determine whether they meet all of the current requirements to be considered "small creditors."
    Apr 14, 2016
  • DOL releases conflict of interest "fiduciary" rules for retirement investment advisors

    The U.S. Department of Labor (DOL) has released its final "fiduciary rule," addressing conflicts of interest in retirement advice. The rule will require those who provide retirement investment advice to abide by a "fiduciary" standard – putting their clients' best interest before their own profits.
    Apr 6, 2016
  • Form Update: Notice of Special Flood Hazards (WCUL #82010)

    The League has updated the Notice of Special Flood Hazards form sold by the W.C.U.L. Services Corp. for use in certain real estate and mobile home-secured loans and credit sale transactions. A final proof version of the form may be viewed here:

    Notice of Special Flood Hazards - WCUL #82010 (rev. 3/16)  (8½ x 11 inch, one 2-sided sheet).

    A description of the changes to the form is provided later in this Compliance Courier, along with a link to a copy with the changes highlighted. All state and federal credit unions should obtain and use the revised form at their earliest convenience as the text of the NCUA’s model form has changed.


    Mar 30, 2016
  • CFPB makes a major change to "rural or underserved" definition for "small creditors"

    The Consumer Financial Protection Bureau (CFPB) has issued an interim final rule that will significantly simplify what it takes for a credit union to be a "small creditor." 

    Among the tests for "small creditor" status, a credit union will only have to show that it originated at least one covered mortgage loan on a property located in a rural or underserved area in the prior calendar year. Previously, credit unions had to show that they originated at least 50% of their first-lien, dwelling secured loans in rural or underserved areas in the prior calendar year. 

    The new interim rule takes effect March 31. The CFPB will accept public comments on it before issuing a final rule. The League expects to submit comments favoring this change. 

    For details, please refer to the CFPB's Executive Summary of the interim rule.  You can read the full text of the new interim rule online here. The League will continue to analyze the change and revise its ii Releases accordingly. 
    Mar 23, 2016
  • Military Lending Act ii Release rewritten to explain broad new rules

    The League has completely revised ii Release No. B067 – "Lending to Servicemembers" – to explain amended Department of Defense (DoD) rules under the Military Lending Act (MLA), which take effect this fall.

    The DoD's amendments will significantly expand the scope of the rules and impose new limits on lending to those in military service and their families. For the first time, the rules will apply to most consumer lending, closed-end or open-end (with some exceptions). For that reason, credit unions should become familiar with the rules and work closely with their data processors,  loan origination system vendors, and forms suppliers to ensure compliance. The new rules will apply to consumer credit transactions or accounts that are consummated (i.e., closed) or established on or after Oct. 3, 2016; however, this date is extended to Oct. 3, 2017, for credit card accounts.
    Feb 25, 2016
  • NCUA overhauls MBL rules; impact limited in Wisconsin

    The NCUA has finalized amendments that largely overhaul its member business lending (MBL) rules, eliminating nearly everything from the rules that the Federal Credit Union Act does not require. 
    Feb 24, 2016
  • Form Update: Adverse Action Notice (WCUL #82029)

    The League has updated the Adverse Action Notice form sold by the W.C.U.L. Services Corp. for use in credit-related transactions. A final proof version of the form may be viewed here: 

    Adverse Action Notice - WCUL #82029 (rev. 2/16)  (8½ x 14 inch, one sheet, single-sided).   

    A description of the changes to the form is provided later in this Compliance Courier, along with a link to a copy with the changes highlighted.


    Feb 22, 2016
  • Wisconsin CUs can now use PolicyAid

    Starting today, The League has arranged for all of our member credit unions to access PolicyAid as part of your dues-supported services. (Annual subscriptions usually cost $799, but League member credit unions get access free.)

    PolicyAid (a service of PolicyWorks, LLC) offers a comprehensive online compliance policy library, giving credit unions access to more than 80 sample policies, including a BSA policy, (in Word format) that you can download and adapt to fit your operations. The policies are updated quarterly to reflect new or amended regulations.


    Feb 1, 2016
  • Annual privacy notice exception now in effect

    The NCUA has provided clarification about the new federal exception for sending annual privacy notices, which The League informed you about in this Dec. 7 Compliance Courier.
    Jan 28, 2016
  • ii Releases updated for year-end rush

    The following ii Releases can help credit unions deal with compliance issues in some tasks that come due after the end of the year. 


    Jan 22, 2016
  • Feb. 1 is deadline to ask for Military Lending Act database access

    Credit unions that want to use the Defense Manpower Data Center (DMDC) for identifying borrowers covered by the Military Lending Act (MLA) must notify the DMDC by Feb. 1. 
    Jan 19, 2016
  • HELOC and ARM rate change notices may be more complex than you thought

    A popular mortgage rate index, The Wall Street Journal prime rate, inched up from 3.25% to 3.5% on December 17, 2015. A virtually identical index used by other lenders, the bank prime loan rate reported in the Federal Reserve Board's H.15 Selected Interest Rates, had the same rate change on the same date. 
      
    For both prime rate indexes, this is the first time rates budged in seven years. Other popular mortgage indexes have adjusted more often. Lenders may be a bit out of practice with sending out rate adjustment notices. They may be unprepared for the complications – especially under Wisconsin law.
    Jan 8, 2016
  • NCUA clarifies share insurance coverage for IOLTA & similar escrow accounts

    The NCUA recently finalized amendments to its regulations (effective Jan. 27), clarifying how it insures accounts in which attorneys and other professionals hold funds for clients. (State law requires attorneys, real estate agents, and others to have special accounts, in which they pool their clients' funds and hold them until needed.)  

    The League covers these types of accounts in ii Release No. 0176, which is being updated to reflect the clarified rules. 
    Jan 7, 2016
  • WCUL releases updated account, REAP share draft, and employment application forms

    The League has released six newly-updated versions of WCUL account-related forms, two R.E.A.P. share draft forms, as well as the credit union employment application. 

    The affected WCUL forms are listed below, with hyperlinks to proof images: 


    Jan 7, 2016
  • CUs must use updated bankruptcy forms; mortgage proof of claim substantially revised

    Effective Dec. 1, the U.S. Bankruptcy Courts have replaced most official bankruptcy forms with substantially revised, reformatted, and renumbered versions. 

    The new forms are to be used in all cases, even cases filed before Dec. 1. Some courts established a 30-day grace period for compliance, but such grace periods are now ending. As a result, credit unions should be sure that they are using the current forms. They are urged to work with experienced bankruptcy counsel to help ensure that all necessary documentation is completed and filed properly. 


    Dec 31, 2015
  • Small Creditor changes taking effect Jan. 1

    Several months ago, The League alerted credit unions that the CFPB had finalized rules making a number of significant changes to the definition of "small creditor," effective Jan. 1. 
    Dec 31, 2015
  • Escrow interest rate set at 0.14% for 2016

    The Wisconsin Department of Financial Institutions has announced that the 2016 mandatory interest rate on required escrow accounts is 0.14% (down from 0.15% in 2015).

    Dec 28, 2015
  • Highway act gives CUs regulatory relief

    As you may have heard, several key credit union regulatory relief provisions were signed into law last Friday by President Barack Obama. The provisions were passed as part of the Fixing America's Surface Transportation (FAST) Act, a highway funding package. 
    Dec 7, 2015
  • Top 10 (or 11) Mistakes to Avoid in Your HELOC Program

    Maybe you missed our HELOC Compliance seminar in Appleton on November 4. But please make sure your HELOC program does not make these serious mistakes: 
    Nov 9, 2015
  • NCUA finalizes RBC rule

    The NCUA has finalized its risk-based capital (RBC) rule, which is to take effect Jan. 1, 2019.
     
    The new rule replaces the current risk-based net worth requirement with a risk-based capital ratio for federally insured, natural-person credit unions. It applies to "complex" credit unions, which are defined as those with over $100 million in assets. The NCUA estimates that 1,489 federally insured credit unions (24% of total) will be subject to the RBC requirements, and only 16 (or 1% of this group) will experience a change in their capital category.


    Oct 16, 2015
  • CFPB finalizes changes to HMDA reporting rules

    The Consumer Financial Protection Bureau (CFPB) has issued a final rule amending Reg. C – the federal Home Mortgage Disclosure Act (HMDA) regulation. The new rule significantly expands the amount of information that covered credit unions must collect and report, but it adds exceptions for lenders that originate few mortgage loans.


    Oct 15, 2015
  • CUNA Mutual offers timely guidance on ATM skimming devices

    According to the Wall Street Journal, card data is being stolen from U.S. ATMs at the highest rate in two decades. The media report many instances of ATM skimming devices being found at banks and credit unions around southern Wisconsin in recent months. The Wisconsin Better Business Bureau has issued a consumer alert on the threat.


    Oct 8, 2015
  • Regulators stress they expect "good faith efforts" on TILA-RESPA

    CFPB Director Richard Cordray and other federal regulators have again stressed that during initial examinations, federal financial institution regulators will focus on lenders’ "good faith" efforts to comply with the TILA-RESPA Integrated Mortgage Disclosure rule.


    Oct 2, 2015
  • Fed Finalizes Same-Day ACH Rules

    The Federal Reserve Board has approved mandatory same-day automated clearinghouse (ACH) processing rules, aligning the same day service to NACHA's recently amended ACH operating rules. Same day transactions will begin to phase in starting September 23, 2016. 
    Sep 28, 2015
  • CFPB updates dollar amounts for credit card penalties, HOEPA triggers & QM limits

    The Consumer Financial Protection Bureau (CFPB) recently released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures all go into effect Jan. 1, 2016. Please see the final rule for complete details.


    Sep 21, 2015
  • CFPB Finalizes "Small Creditor" Changes for January 1, 2016

    Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule that should help more credit unions meet the standards to be considered "small creditors," giving them somewhat greater flexibility to make certain mortgages – including balloon and demand loans.

    The changes are effective Jan. 1, 2016.


    Sep 21, 2015
  • FBI: Foreign scammers retaining attorneys as unwitting intermediaries in check fraud scheme

    The FBI office in Milwaukee contacted The League yesterday and asked that we share the following report about a fraud scheme targeting attorneys and financial institutions. We gladly oblige. Please review the report carefully and share it with your security officer, check department, and other appropriate staff.
    Aug 7, 2015
  • Military lending rules will expand significantly in 2016

    The Department of Defense (DoD) has finalized amendments to its Military Lending Act (MLA) rules, significantly expanding the scope of the rules and imposing new limits on lending to those in military service and their families.

    The new rules becomes effective on Oct. 1, 2015, with compliance required by Oct. 3, 2016. However, compliance with the rules’ credit card provisions will be delayed until October 3, 2017.


    Jul 24, 2015
  • Integrated mortgage disclosure rule delayed to Oct. 3

    The Consumer Financial Protection Bureau (CFPB) has issued a final rule moving the effective date of the TILA/RESPA integrated mortgage disclosure rule to October 3, 2015. The rule was to have gone into effect on Aug. 1.

    In our comment letter on the proposal, The League asked the CFPB to clarify that the postponement applies to the entire TILA-RESPA integrated mortgage disclosure rule, including the revised servicing transfer notice (Reg. Z §1026.39(d)(5)) and the new escrow cancellation notice (Reg. Z §1026.20(e)). The CFPB has made it clear that it does:
    Jul 22, 2015
  • FFIEC offers Cybersecurity Assessment Tool

    In light of the increasing volume and sophistication of cyber threats, the Federal Financial Institutions Examination Council (FFIEC) – an interagency group that includes the National Credit Union Administration (NCUA) – has released a Cybersecurity Assessment Tool to help credit unions and other financial institutions identify risks and assess their cybersecurity.
    Jul 1, 2015
  • Comments sought on proposed Oct. 3 integrated mortgage disclosure date

    The League recently alerted  Wisconsin credit unions that the CFPB (Consumer Financial Protection Bureau) planned to issue a proposal extending by two months the effective date for the TILA/RESPA Integrated Mortgage Disclosure Rule. The CFPB has now published its proposed rule. If adopted, it would extend the effective date from Aug. 1 to Oct. 3, 2015.
    Jun 25, 2015
  • NCUA OKs amendments to flood insurance rules (corrected 6/23/15)

    The NCUA (National Credit Union Administration) and other federal regulators have approved changes to their flood insurance rules.

    Parts of the new rules take effect on Oct. 1 and others on Jan. 1, 2016. Certain credit unions are exempt from new rules that will require escrow for flood insurance premiums and fees.
    Jun 23, 2015
  • CFPB proposes two-month delay on integrated mortgage disclosures

    The Consumer Financial Protection Bureau (CFPB) has announced that it is proposing to extend the effective date for the new TILA-RESPA integrated mortgage disclosure rule – from Aug. 1 to Oct. 1.
    Jun 18, 2015
  • Agencies set voluntary standards for diversity policies

    The NCUA and other federal regulators have issued a joint policy statement setting standards for assessing the diversity policies and practices of the institutions they regulate, including credit unions. 
    Jun 15, 2015
  • CFPB issues instructions on adding logos to "Home Loan Toolkit" booklet

    In April, The League alerted Wisconsin credit unions that the CFPB had updated the booklet that must be provided to consumers shopping for a home loan. The updated publication is titled: "Your Home Loan Toolkit: A Step-by-Step Guide." It will replace the booklet now in use, titled "Shopping for Your Home Loan: Settlement Cost Booklet" when the TILA-RESPA Integrated Disclosures go into effect on August 1.
    Jun 3, 2015
  • NACHA approves same-day ACH rule

    NACHA – The Electronic Payments Association has approved a final “same day ACH” (automated clearinghouse) rule. The new rule will give ACH originators that desire same-day processing the option to send same-day ACH transactions to accounts at any receiving financial institution. The new system will be implemented in three phases, beginning in September 2016.


    May 19, 2015
  • FTC launches ID theft site for consumers

    The Federal Trade Commission has announced the launch of a new website, IdentityTheft.gov  for victims to report and recover from identity theft.
    May 18, 2015
  • CFPB plans webinar on "integrated mortgage disclosure" implementation

    On May 26, the Consumer Financial Protection Bureau (CFPB) will host the latest in a series of "Outlook Live" webinars on the TILA-RESPA Integrated Disclosures rule.

    This fifth and final webinar of the series will address questions about rule interpretation and implementation challenges that have been raised by creditors, mortgage brokers, settlement agents, software developers, and others.  In particular, the session will cover industry questions relating to operations and technology challenges, particularly new questions that have arisen as industry is further into implementation.

    The teleconference is scheduled for Tuesday, May 26, from 1 p.m. to 2 p.m. Central.
    Click here to register.
    Apr 30, 2015
  • Office of Credit Unions gives guidance on Other Real Estate Owned (OREO)

    In its General Letter CU 1-15, the Office of Credit Unions is providing guidance to credit unions in handling situations involving Other Real Estate Owned (OREO). Wisconsin state-chartered credit unions are permitted to own foreclosed and OREO property based on their statutory power to make loans to their members. It is important that credit unions understand the risks associated with OREO and review this letter and other resources listed in the letter for guidance. Credit unions are strongly encouraged to consider whether investing additional material resources into or holding an OREO is in the best interest of the credit union.
    Apr 6, 2015
  • CFPB Updates "Special Information Booklet" to be Used With Integrated Mortgage Disclosures August 1

    The CFPB has updated the booklet that must be provided to consumers shopping for a home loan. The updated publication is titled: "Your Home Loan Toolkit: A Step-by-Step Guide." It will replace the booklet now in use, titled "Shopping for Your Home Loan: Settlement Cost Booklet." 

    Apr 2, 2015
  • NCUA's 2015 Examination Priorities

    National Credit Union Association (NCUA) will be focusing on areas of higher risk in the credit union and compliance with new regulations in 2015. In NCUA’s Letter to Credit Unions No. 15-CU-01, they specified several areas of focus to help credit unions prepare for their 2015 examinations.  In the Letter, NCUA includes links to additional guidance and online resources on these topics.
    Mar 24, 2015
  • March 2015 ii Transmittal Sheet

    Review the regulatory action calendar each month so you can see approaching deadlines, or catch some that you may have missed. Members can also receive (via email) electronic copies of the ii Transmittal Sheets and Compliance Couriers, please email Judy Phillips  with your name, CU and email address.


    Feb 1, 2015
  • NCUA updates two aspects of appraisal rules

    The National Credit Union Administration (NCUA) recently updated its appraisal rules. Effective today, Jan. 20, 2015, the amendments made two noteworthy changes:

    First, the NCUA rules now say that a federally insured credit union (including Wisconsin state-chartered credit unions) may refinance or modify a real estate-related loan held by that credit union without having to obtain another appraisal, if either:

    1. There is no advancement of new monies (other than funds necessary to cover reasonable closing costs); or
    2. There has been no obvious and material change in market conditions or physical aspects of the property that threatens the adequacy of the credit union’s real estate collateral protection after the transaction

    Second, the NCUA has dropped its requirement for federal credit unions (FCUs) to make available copies of appraisals used in connection with applications for first-lien residential real estate loan applications. (The rule was unnecessary, since Reg. B now requires the appraisals to be made available on those loans.) The NCUA rule now only applies to FCUs that receive applications for subordinate-lien loans to be secured by a dwelling.


    Jan 20, 2015
  • Free webinar Jan. 20 on TILA-RESPA integrated disclosures

    CUNA Mutual Group is offering a free webinar that will help all credit unions remain compliant with their mortgage lending after Aug. 1, when the new TILA-RESPA integrated mortgage disclosure rules take effect. The webinar is offered at multiple times throughout the day on Jan. 20, is free for all credit unions, and concludes with a live Q&A session. 
    Jan 15, 2015
  • State to eliminate barrier to CU IOLTA accounts

    Recently, The League alerted Wisconsin Credit unions about a change in federal law that now provides share insurance coverage for certain kinds of trust accounts – such as Interest on Lawyer Trust Accounts (IOLTAs), in which attorneys pool their clients’ funds. The accounts now have share insurance coverage, regardless whether the attorney’s clients (who actually own the funds) are credit union members.

    Jan 6, 2015
  • CFPB announces two annual exemption amounts

    The Consumer Financial Protection Bureau (CFPB) has released its annual updates to two regulatory exemption amounts that affect credit unions doing mortgage lending.
    Dec 29, 2014
  • New law clears way for IOLTA accounts at credit unions

    Last week, President Obama signed the "Credit Union Share Insurance Parity Act," into law, providing federal share insurance escrow accounts such as Interest on Lawyer Trust Accounts (IOLTAs) "and other similar accounts."

    The new law, which takes effect immediately, makes it simpler for credit unions to hold special trust accounts in which attorneys pool their clients’ funds. The act also appears to provide similar insurance protections for real estate agents and collection agencies that hold clients’ funds in trust accounts.
    Dec 22, 2014
  • Escrow interest rate unchanged for 2015

    The Wisconsin Department of Financial Institutions has announced  that the 2015 mandatory interest rate on required escrow accounts is 0.15% (unchanged from 2014).
    Dec 18, 2014
  • Regulators update BSA/AML Examination Manual

    The federal agencies that oversee financial institutions announced today that they have revised their interagency Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual – one of the best resources for credit unions on BSA compliance.
    Dec 2, 2014
  • The Wisconsin Trust Code establishes important rules

    The Wisconsin Trust Code – a set of statutes that govern how trusts operate – went into effect this year. Previously, most of the law regarding trusts was based on courts’ opinions. The new Trust Code helps to clarify many issues about how trusts work and how third parties (like credit unions) can be protected with dealing with trusts. The law is based on the Uniform Trust Code, which has been adopted by many other states.
     
    This article summarizes the basic Wisconsin Trust Code provisions that are important to credit unions.
    Nov 26, 2014
  • FRB archives 4 TILA-RESPA integrated disclosure webinars

    As mortgage lending credit unions prepare for the TILA-RESPA integrated disclosure rule taking effect next August 1, please be alert for programs and resources offered by your form vendors and other service providers. The League offers 76 pages of guidance in ii Release No. B079. Now the Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board have archived their in-depth series of webinars . . . .
    Nov 26, 2014
  • POD, joint accounts, other assets now subject to Estate Recovery Program

    Changes to Wisconsin state laws (which were part of the 2013-15 state budget) have broadened the types of assets the state can pursue when seeking repayment for certain types of benefits a deceased person received.
     
    The Wisconsin Department of Health Services (DHS) published this fact sheet to help explain the types of assets and benefit services that are now part of its Estate Recovery Program (as of Aug. 1, 2014).  This DHS publication summarizes the changes, as well.

    Nov 6, 2014
  • New rule allows for "cure" of QM points and fees overcharge

    As of Nov. 3, 2014 credit unions that intend to make a "qualified mortgage" (QM) but inadvertently exceed the points and fees caps in the QM rule, can "cure" the mistake by refunding the excess, allowing the loan to keep its QM status. The CFPB’s recent final rule, establishing the points-and-fees cure, is online here. The League is updating its ii Release No. B074 – "Reg. Z: Ability to Repay / Qualified Mortgage Rule" – to reflect the new rule.
    Nov 5, 2014
  • CFPB issues 2015 list of “rural and underserved” counties

    The Consumer Financial Protection Bureau (CFPB) has published its 2015 list of “rural and underserved” counties.

    Several federal mortgage rules have provisions related to mortgage loans made by creditors that lend predominantly on properties located in these counties. The CFPB annually posts a list of “rural underserved” counties, which creditors may rely on as a safe harbor.


    Nov 3, 2014
  • Privacy rule lets credit unions post annual notices online

    The Consumer Financial Protection Bureau (CFPB) recently issued a final rule that amends Reg. P (the privacy rule), allowing credit unions that meet certain requirements to post their annual privacy notices online instead of mailing them. The rule was effective on Oct. 28, 2014 (the date it was published in the Federal Register.)

    The new online delivery method is only available if your credit union meets certain eligibility requirements, which are described in detail below.

    For information about the privacy rule, see The League’s ii Release No. 0152. It is being updated to add information about the changes to Reg. P.

    The text of the new final rule is available here.
    Nov 3, 2014
  • Final deadline approaching . . .


    Oct 29, 2014
  • Department of Revenue now handles annual unclaimed property reporting

    Wisconsin law requires credit unions and other organizations ("holders") to review their financial records each year to determine whether they hold any funds, securities or other tangible property that has been unclaimed for certain periods of time. Holders must file an annual report by Nov. 1 and deliver the property to the state.

    On July 2, 2013, the administration of the Unclaimed Property Program was transferred from the Office of the State Treasurer to the Department of Revenue (DOR). This is the new contact information for the unclaimed property program:

    Wisconsin Unclaimed Property
    Department of Revenue
    P.O. Box 8982
    Madison, WI 53708
    Phone: (608) 264-4594
    Fax: (608) 261 6799
    Email: DORUnclaimedProperty@revenue.wi.gov
    Oct 16, 2014
  • DOR: Notice to Financial Institutions Regarding IRA Funds (via email Oct 13, 2014)

    Important information

    The Wisconsin Department of Revenue (DOR) has revised policy to include Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees (SIMPLE) IRA plans in levy orders.  Previously, only funds held in Traditional and Roth IRA accounts were subject to levy.
    Oct 13, 2014
  • New ii Release covers integrated mortgage disclosures

    The League is publishing a new ii Release No. B079 – TILA-RESPA Integrated Mortgage Disclosure Rule  – to give Wisconsin credit unions guidance on the new Loan Estimate and Closing Disclosure forms they will have to start using next August. The release is adapted from the CFPB’s “TILA-RESPA Integrated Disclosures Rule Small Entity Compliance Guide,” but it also addresses Wisconsin law and cross-references various League resources. The release includes exhibits with the CFPB’s instructions for completing the new disclosure forms, along with a calendar that illustrates the disclosure timing requirements.
    Oct 10, 2014
  • CU Magazine describes "How FATCA Will Affect Your W-8BEN Forms."

    A recent issue of CUNA’s Credit Union Magazine provides updated guidance on the Foreign Account Tax Compliance Act (FATCA) compliance issues for credit unions. Be sure to review How FATCA Will Affect Your W-8BEN Forms. Links to the article and other FATCA resources are provided on The League’s new Topics A-Z page addressing FATCA resources. 
    Oct 2, 2014
  • CUNA Strategic Services - Newtek Small Business Lending

    Provide SBA loans through a referral relationship with Newtek Small Business Finance, a non- bank SBA lender. Any credit union can benefit – from one that has no business lending ability or experience to the most sophisticated of business lenders. This program is available to your credit union free of charge and on a loan-by-loan basis. Your credit union earns a referral fee for each referred loan that Newtek funds.
    Sep 26, 2014
  • FRB: Overview of E-Banking Compliance Considerations (Consumer Compliance Outlook; Fourth Quarter 2013)

    Overview of E-Banking Compliance Considerations - By Evangelia Stergiou, Associate Examiner, Federal Reserve Bank of Boston.

    This article provides a high-level overview of some e-banking compliance considerations for Regulation X — Real Estate Settlement Procedures Act (RESPA), Regulation Z — Truth in Lending Act (TILA), Regulation B — Equal Credit Opportunity Act (ECOA), Regulation E — Electronic Fund Transfer Act, and Regulation DD — Truth in Savings Act (TISA). Financial institutions must ensure e-banking products and services comply with these laws and regulations
    Sep 17, 2014
  • The League will not offer integrated TILA-RESPA disclosure forms

    The League will not be developing integrated TILA-RESPA forms for real estate loans where the application is received on or after August 1, 2015.

    The League will continue to fill the niche for Wisconsin compliance forms, including real estate notes, mortgages, and other forms. However there are no overriding state level compliance concerns when using a federally compliant TILA-RESPA form from a national vendor.
    Sep 10, 2014
  • CFPB updates dollar amounts for credit card penalties, HOEPA triggers and QM limits

    The Consumer Financial Protection Bureau (CFPB) recently released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures all go into effect Jan. 1, 2015. Please see the final rule for complete details.
    Aug 25, 2014
  • Remittance transfer exception extended until 2020

    The Consumer Financial Protection Bureau (CFPB) has finalized amendments to its international remittance transfers rule, extending until July 21, 2020, an exemption that allows federally insured institutions (including credit unions) to estimate third party fees and exchange rates when providing remittance transfers to account holders. The exception only applies when they cannot determine the exact amounts for reasons beyond their control.
    Aug 25, 2014
  • Your prompt attention is required: Deadline Aug. 15 to request additional Form 990 extension


    Aug 8, 2014
  • Compliance TIP: Electronic delivery of IRS information return statements to members

    Although a credit union may have navigated the CFPB rules for electronic delivery of account statements to members, it may not have the proper consents and procedures in place to permit electronic delivery of 1098 and 1099 information returns to those same members. Every credit union needs to report member information to the IRS each year on 1099-INT and often other information returns (1098, 1099-MISC, 1099-C, etc.). They must also provide members that IRS information using the official IRS forms or substitute statements that meet stringent requirements. But can the IRS statements be furnished to members electronically? The answer is a qualified yes. The IRS says that if you are required to furnish a written IRS statement (Copy B or an acceptable substitute) to a recipient, then you may furnish the statement electronically instead of on paper if you meet the requirements for consent, format, posting and notification. . . .
    Aug 6, 2014
  • Register now for August 26 CFPB webinar on new mortgage disclosures.

    Second in a series of discussions on the TILA-RESPA Integrated Disclosures rule. The new rule consolidates existing mortgage disclosures required under TILA and RESPA into two integrated forms designed to make it easier for consumers to understand and locate key information, and also integrates the substantive and procedural requirements for providing these disclosures to consumers. The Consumer Financial Protection Bureau (CFPB) plans to host these webinars periodically throughout implementation, regularly soliciting feedback and additional questions in the interim. The first session was presented by the CFPB on June 17th, and provided an overview of the final rule and the new disclosures. You can access a recording of that webinar at https://www.webcaster4.com/Webcast/Page/48/4689. The August 26th session will focus on addressing specific questions related to rule interpretation and implementation challenges that have been raised.
    Aug 5, 2014
  • DWD agrees to revise data match contract; CUs must understand choice before signing

    At the urging of The League and other interested stakeholders, the Wisconsin Department of Workforce Development (DWD) has agreed to change the terms of its new Unemployment Insurance Financial Record Match Program service agreement. 
    Aug 4, 2014
  • Wisconsin’s state-chartered credit unions gain incidental powers similar to FCUs

    The Office of Credit Unions has finalized an administrative rule granting Wisconsin state-chartered credit unions new powers that are deemed to be “incidental to the business of a credit union.” Wis. Admin. Code Ch. DFI-CU 75 took effect on July 1, 2014.
    Jul 14, 2014
  • Examiners will assess cybersecurity risks in new pilot program

    The Federal Financial Institutions Examination Council (FFIEC) recently announced that federal regulators, including the NCUA, will begin a cybersecurity pilot program this summer, in which examiners will assess the cybersecurity vulnerabilities and risk mitigation efforts at 500 community financial institutions. About half of the selected institutions will be credit unions, and it is likely that some credit unions in Wisconsin will be involved.

    The vulnerability and risk mitigation assessments will be done during normal examinations, incorporated into the information technology reviews that are already done. Regulators have said that the assessments will not result in any new examination ratings.
    Jul 8, 2014
  • Regulators issue joint guidance on HELOC "end-of-draw" expectations

    Credit unions that offer home equity lines of credit (HELOCs) should follow new joint guidance from the NCUA and other financial institution regulators about handling HELOCs when they near the ends of their draw periods. As HELOCs transition from their draw periods to full repayment, some borrowers may find it difficult to make higher payments or to refinance because of changes in their financial circumstances or declines in property values.

    The "Interagency Guidance on HELOCs Nearing Their End-of-Draw Periods"  describes core operating principles that should govern management’s oversight of HELOCs nearing the ends of their draw periods. It also describes a risk-management approach that regulators say will promote an understanding of potential exposures and consistent, effective responses to HELOC borrowers who may be unable to meet contractual obligations. In addition, the guidance addresses financial reporting for HELOCs.


    Jul 2, 2014
  • Credit unions advised to wait before signing new data match agreement


    Jun 19, 2014
  • "Small creditors" asked to comment on mortgage rules

    The League is asking “small creditors” to tell us what they think about three aspects of the recent Dodd-Frank mortgage lending rules. We’d like to share your views in a letter to the Consumer Financial Protection Bureau (CFPB).

    The CFPB is seeking comments from small creditors (and from lenders who can’t qualify as small creditors because they have originated too many first-lien mortgages) on three issues:

    • The challenges small creditors have faced in moving from balloon loans to adjustable rate mortgage loans because of the rule changes;

    • Data on the number of types of loans small creditors originated to hold in portfolio before the rules took effect on Jan. 10, 2014 vs. after; and

    • Comments on whether it is appropriate to limit the definition of “small creditors” to those that originated 500 or fewer first-lien loans in the previous year.
    Jun 9, 2014
  • Changes to credit union regulations go into effect June 1

    On April 30, The League alerted you about amendments to several Wisconsin Office of Credit Union (OCU) regulations and state statutes, replacing or eliminating out-of-date, contradictory or simply unnecessary parts of state credit union laws. The Act’s amendments to Wisconsin Administrative Code DFI-CU (the state credit union regulations) are now being published in the Wisconsin Administrative Register and will take effect June 1. The Act’s amendments to Chapter 186 of the Wisconsin Statutes (which governs credit unions) already went into effect – on April 18. 

    The changes affect:

    • Participation loans, parity with FCUs;
    • Incidental powers, parity with FCUs;
    • Member business loan reserves;
    • Record retention & destruction;
    • Investments in depository financial institutions;
    • "Term share accounts";
    • Credit Union Service Organizations (CUSOs);

    May 23, 2014
  • Prompt attention needed. . . .


    May 15, 2014
  • CUs benefit from changes to state statutes and regulations

    Amendments to several Wisconsin Office of Credit Union (OCU) regulations and state statutes will reduce compliance burdens by giving state-chartered credit unions clearer regulations and more flexibility. The changes replaced or eliminated out-of-date, contradictory or simply unnecessary parts of various regulations and statutes. 

    The changes affect:
    • Participation loans, parity with FCUs;
    • Incidental powers, parity with FCUs;
    • Member business loan reserves;
    • Record retention & destruction;
    • Investments in depository financial institutions;
    • "Term share accounts";
    • Credit Union Service Organizations (CUSOs);
    • Real estate lending; and
    • Minor changes.

    Apr 30, 2014
  • WCUL releases updated loan forms: 81101, 82014 and 82018

    The League has released updated versions of three WCUL lending forms to facilitate compliance with state and federal regulations: 
    • Consumer Note and Federal Truth in Lending Disclosures (WCUL #82014), for use with fixed-rate Wisconsin Consumer Act loans not secured by real estate or a dwelling.
    • Variable Interest Rate Addendum (WCUL #82018),* for use with loans with variable interest rates, when the note or other loan agreement does not include the variable rate clause desired by the credit union.
    • Consumer Note and Federal Truth in Lending Disclosures (Credit Sale) (WCUL #81101),* for use only when financing sale of CU’s personal property, other than dwelling, subject to the Wisconsin Consumer Act.
    * Please note that WCUL #82018 and WCUL #81101 will be available in laser-printed format only, not pre-printed paper stock.
    Apr 15, 2014
  • Debit card agreements may need updating

    Wisconsin credit unions should take time to review their debit card agreements, to see what they say about cardholder liability for unauthorized electronic fund transfers (EFTs).

    On April 1, Wisconsin’s regulations were amended allowing Wisconsin credit unions and other financial institutions to impose greater liability on consumers for unauthorized EFTs, such as the use of a stolen debit card.
    Apr 15, 2014
  • NCUA updates share insurance booklet

    The NCUA released its updated "Your Insured Funds" booklet  (rev. 06/2015) this spring, giving consumers and credit unions information on share insurance coverage in a new, easy-to-read format. The booklet provides an in-depth look at NCUA's share insurance and includes many examples to help explain its protections. Credit unions must have the booklet available for members on request at all branches or offices, or else a copy of NCUA Rules and Regulations, Part 745 Appendix A.
    Apr 1, 2014
  • Federal CUSO rules will apply to Wisconsin credit unions as of June 30

    The NCUA recently expanded the scope of its rules on credit union service organizations (CUSOs) to cover all federally insured, state-chartered credit unions (FISCUs). (All Wisconsin state-chartered credit unions are FISCUs.)

    Compliance will require credit unions with loans or investments in CUSOs to make changes in the agreements they currently have with their CUSOs. Going forward, new agreements must comply with the NCUA rules.

    The amended rules – which take effect June 30, 2014 – will require greater transparency from CUSOs. They address accounting, financial statements, and audits. They include limits on the ability of "less than adequately capitalized" FISCUs to recapitalize their CUSOs. Also, CUSOs will have to provide annual information to the NCUA and state supervisory authorities. CUSOs will begin submitting reports after Dec. 31, 2015, through a CUSO registration system the NCUA is creating.


    Mar 31, 2014
  • State to loosen rules on consumer liability for unauthorized transfers April 1

    Wisconsin credit unions and other financial institutions may be able to impose more liability on consumers for unauthorized electronic fund transfers (EFTs), such as the use of a stolen debit card, under recently amended state rules.
    Mar 28, 2014
  • Don’t let these compliance deadlines slip by

    We want to remind credit unions about three upcoming compliance deadlines
    Mar 10, 2014
  • Mortgage booklets available for pre-order

    Last month, The League alerted credit unions that the Consumer Financial Protection Bureau had updated three disclosure booklets credit unions must provide to consumers in connection with certain home loan applications.
    Mar 10, 2014
  • CFPB announced mortgage lending brochures updated

    The Consumer Financial Protection Bureau (CFPB) announced that it has updated three disclosure booklets credit unions must provide to consumers in connection with certain home loan applications.
    Feb 4, 2014
  • Compliance Tip: Complying with both state & federal ARM notice rules

    Some credit unions have expressed confusion over the requirements for sending adjustment notices on adjustable rate mortgages (ARMs). Specifically, they wonder whether they must send multiple notices when a rate adjusts, to comply with both the new Reg. Z rules and existing Wisconsin law. The League’s ii Release No. B002  covers variable rate adjustment notices.
    Jan 23, 2014
  • New state law changes rules for payoff statements & mortgage satisfactions

    Effective Dec. 14, 2013, newly enacted 2013 Wisconsin Act 66 has replaced the state law on mortgage satisfactions. The act adds section 708.15 to the Wisconsin Statutes, making several changes that affect Wisconsin credit unions.
    Jan 20, 2014
  • Use ii Release No. 0061 to plan, run your annual meeting

    ii Release No. 0061 - Annual Meetings  offers many resources to help you plan and run your annual meeting, including a sample script.
    Jan 17, 2014
  • HMDA exemption increased to 43 million

    The Consumer Financial Protection Bureau (CFPB) has published its annual notice of the asset-size exemption threshold for depository institutions under Reg. C, which implements the Home Mortgage Disclosure Act (HMDA). The asset-size exemption for depository institutions is being increased to $43 million (up from $42 million), effective Dec. 31, 2013.
    Jan 9, 2014
  • New exemptions ease appraisal burdens for higher-priced mortgage loans

    The CFPB, NCUA, and other federal regulators have adopted new rules that exempt certain types of "higher-priced mortgage loans" (HPMLs) from new appraisal requirements taking effect Jan. 18, 2014.
    Jan 3, 2014
  • CFPB amends & clarifies mortgage servicing rules

    The Consumer Financial Protection Bureau (CFPB) recently issued a press release, bulletin, and interim final rule amending and clarifying parts of the mortgage servicing regulations that went into effect Jan. 10, 2014.
    Dec 31, 2013
  • New release covers denial of services

    The League is publishing new ii Release No. 0183 – "Denial of Services." It describes compliance issues involved in denying services to members who cause losses or other problems. The release addresses four main topics :

    1. General compliance issues that a denial of services policy raises.
    2. The issues involved with denying specific types of services, such as accounts or new loans.
    3. The process for expelling members from the credit union altogether.
    4. Special issues that arise when the credit union wants to deny services to or expel a member who is in (or has gone through) bankruptcy.

    Dec 27, 2013
  • NCUA liquidity rules taking effect soon

    Section 741.12 of the NCUA Regulations requires all federally insured credit unions (FICUs) to have access to emergency liquidity funds.
    Dec 20, 2013
  • Federal regulators issue new social media compliance guide

    The Federal Financial Institutions Examination Council (FFIEC) has released new guidance to help credit unions and other financial institutions manage risks related to social media.

    "Social Media: Consumer Compliance Risk Management Guidance"  does not impose new requirements. Instead, it is intended to help credit unions understand the potential consumer compliance and legal risks, as well as related risks such as reputation and operational risks, associated with the use of social media. It also addresses the regulators’ expectations for managing those risks. Credit unions should find the guide useful in conducting risk assessments and crafting and evaluating policies and procedures for social media.


    Dec 16, 2013
  • Updated WCUL loan forms released for use

    The League has updated nine WCUL forms (Rev. 11/13) to facilitate compliance with mortgage reform regulations that take effect in January 2014.

    Applications

    • Credit Union Loan Application for Wisconsin Residents #82083
    • Mini-Loan Application #82053
    • Credit Union Loan Application (Non-Resident) #81042

    Notes

    • Consumer Note #82073
    • Mortgage Note (Non-Consumer) #82042

    Collateral

    • Consumer Chattel Security Agreement #82005
    • Consumer Mortgage #82020
    • Mortgage (Non-Consumer) #82043

    Truth in Lending

    • Federal Truth In Lending Disclosures (Personal) (1 p.) #82057 

    Discontinued Form

    • Consumer Note and Federal TIL Disclosures with Variable Rate #82069

    Dec 13, 2013
  • DFI sets 2014 rate for required escrow accounts at 0.15%

    The Wisconsin Department of Financial Institutions has announced that the 2014 mandatory interest rate on required escrow accounts is 0.15% (down from 0.20% in 2013).
    Dec 6, 2013
  • Online tool will generate lists of homeownership counselors

    The Consumer Financial Protection Bureau (CFPB) recently announced the launch  of an online tool to help lenders generate lists of homeownership counselors of mortgage loan applicants, as required under rules that take effect in January.
    Dec 6, 2013
  • FRB presents Dec. 4 webinar: Small Creditor Qualified Mortgages


    Nov 25, 2013
  • CFPB issues new TILA/RESPA disclosures, effective Aug. 1, 2015

    The Consumer Financial Protection Bureau (CFPB) has issued its new (and long-awaited) "Know Before You Owe" mortgage forms and rule. The new forms will replace the early Truth in Lending statement and the Good Faith Estimate (which are given early in the application process) and the Settlement Statement and final Truth in Lending disclosure forms (which are given at closing).

    The rule is effective Aug. 1, 2015. Credit unions will have to provide the new disclosures for loans applications they receive on or after that date.

    The rule will apply to most closed-end consumer credit transactions secured by real property. This includes first mortgages and closed-end home equity loans. It will not apply to HELOCs, reverse mortgages, mortgages secured by mobile homes and loans secured by a dwelling but not attached real property.


    Nov 21, 2013
  • New ii Release explains rules for giving applicants copies of appraisals

    Under state and federal regulations, credit unions must give mortgage loan applicants copies of appraisals or valuations (and in some cases, notify them that they have the right to obtain copies). The League is publishing new ii Release No.B077  to explain those requirements.

    The release was prompted primarily by Equal Credit Opportunity Act / Reg. B amendments that take effect for first-lien, dwelling secured loans as of Jan. 18, 2014, but it covers other state and Federal rules, too. The new release includes a chart to help clarify when and how the various regulations apply.
    Nov 19, 2013
  • Important developments hamper CUs making demand loans

    Two recent developments will affect Wisconsin credit unions’ ability to offer demand loans: 

    • It appears that demand loans, like balloon loans, generally cannot be "qualified mortgages" under new rules taking effect in January – unless the credit union is a "small creditor." 
    • The Administrator of the Wisconsin Consumer Act (WCA) now views demand clauses as violating the WCA, and it will not continue to approve The League’s consumer loan form if it includes a demand clause.

    Nov 14, 2013
  • League Revises Loan Application Forms

    The League is revising its three loan application forms. The changes address several compliance issues, they clarify when and how the forms are to be used, and they meet new mortgage lending rules effective in January 2014.

    The forms are awaiting approval from the Wisconsin Department of Financial Institutions, Bureau of Consumer Affairs (DFI), before they can be used. In the meantime, "proof" copies of all three forms are available online for credit unions to review:

    • Credit Union Loan Application for Wisconsin Residents (WCUL #82083) (Rev. 11/13).
    • Credit Union Loan Application (Non-Resident) (WCUL #81042) (Rev. 11/13).
    • Mini-Loan Application (WCUL #82053) (Rev. 11/13).

    Revisions to the forms are highlighted in yellow. Find details here.
    Nov 11, 2013
  • MLO registrations must be renewed with NMLSR by year-end

    Each Mortgage Loan Originator and his or her credit union must renew their federal National Mortgage Licensing System & Registry (NMLSR) registration each year between November 1 and December 31. To renew, the MLO must confirm that the information in the Registry  is still accurate and complete, and must update any information, if necessary.
    Nov 1, 2013
  • HPML ii Release updated for January appraisal rules

    The League is updating its ii Release No. B068  on "higher-priced mortgage loans" (HPMLs) under Reg. Z §1026.35. (Some refer to these as "Section 35" loans.) The updates reflect two new appraisal requirements, which will apply to applications for HPMLs received on or after Jan. 18, 2014 (even if the loan will close after that date). 
    Oct 24, 2013
  • Practical tools can help CUs implement critical new mortgage rules

    Many credit unions are struggling to understand the rush of new mortgage lending rules that take effect in January 2014 (and a few that took effect in June 2013). To help explain the requirements, The League has been publishing Compliance Couriers, creating new ii Releases, and updating existing releases over the past year.
    Oct 18, 2013
  • League publishes new ii Release on financing credit insurance

    The League is publishing new ii Release No. B076, which summarizes the federal regulations against the financing of credit insurance on mortgage loans.

    Reg. Z prohibits credit unions from financing any premiums or fees for credit insurance in connection with most home mortgage loans for which the credit union receives an application on or after Jan. 10, 2014. (The rules do not affect credit insurance in force before that date.) The rules do not apply if credit insurance premiums are calculated and paid in full on a monthly basis.


    Oct 10, 2013
  • League publishes new ii Release on mortgage servicing rules

    The League publishes new ii Release No. B075  to explain various Truth in Lending regulations (Reg. Z) and Real Estate Settlement Procedures Act (RESPA) regulations (Reg. X) that affect how credit unions (and others) must service mortgage loans.
    Oct 9, 2013
  • Last call to register for update on new regulations


    Oct 7, 2013
  • Rules updated on mortgage servicing, loan originators, and "points-and-fees" tests

    The Consumer Financial Protection Bureau (CFPB) recently issued amendments to its mortgage lending rules that take effect in January 2014. Among the changes:

    • Four mortgage servicing rules have been updated; 
    • The rules better explain how to calculate the points-and-fees thresholds under the ability-to-repay / qualified mortgage rule and the high-cost mortgage rules; and
    • The new amendments modify the rules on loan originators. 

    Sep 23, 2013
  • Two Reg. Z amendments ease mortgage compliance for "small creditors"

    The Consumer Financial Protection Bureau (CFPB) recently amended its mortgage lending rules to ease compliance somewhat for lenders that meet the definition of "small creditor" under Reg. Z. The two changes are:
    • Amendments to rules that went into effect in June 2013 will make it easier for "small creditors" to avoid establishing escrow accounts for first-lien higher-priced mortgage loans.  
    • For two years (until Jan. 10, 2016), all "small creditors," regardless whether they lend predominantly in "rural" or "underserved" areas, can continue originating balloon "high-cost" mortgages – if the loans meet the requirements for "qualified mortgages" under Reg. Z. That rules goes into effect for applications received on or after Jan. 10, 2014. (Similar amendments to the qualified mortgage rules were made last month.) 

    Sep 23, 2013
  • Final rules restrict financing of credit insurance premiums


    The CFPB has amended Truth in Lending rules that will prohibit the financing of credit insurance premiums for mortgage loans. The final rules were included in a set of mortgage regulation amendments recently published by the Consumer Financial Protection Bureau (CFPB). The full text of amendments is online here. Additional resources to help credit unions comply with all of the 2013-14 mortgage rules changes can be found on theCFPB's Regulatory Implementation page.



    Sep 23, 2013
  • Qualified mortgage / ability to repay rule amended; two-year transition loosens restrictions on balloon loans for "small creditors"

    The Consumer Financial Protection Bureau has issued two sets of amendments to its ability-to-repay and qualified mortgage rule.

    Several of the amendments are designed to simplify compliance for small lenders. This change should interest Wisconsin credit unions in particular: During a two-year transition period, lenders that meet the definition of a "small creditor" will be able to offer balloon mortgage loans as "qualified mortgages" even if they do not lend predominantly in rural or underserved areas, so long as they hold the loans in portfolio. In the meantime, the CFPB says it will work with small creditors to transition to other types of products, such as adjustable-rate mortgages.

    The League will soon update its ii Release No. B074  to reflect the changes.

    You can read the full text of the CFPB’s June amendments here  and its July amendments here.


    Aug 29, 2013
  • Reminder: FCC "robocall" rules effective Oct. 16

    In February 2012, The League alerted Wisconsin credit unions to new rules from the Federal Communications Commission (FCC) that limit the ability of credit unions (and others) to make autodialed or prerecorded telemarketing calls (also known as "robocalls") to wireless numbers or residential phone lines.

    The rules take effect Oct. 16, 2013. All sellers and telemarketers will need a consumer's consent for certain autodialed or prerecorded calls. The rules differ depending on whether the call is for telemarketing or information purposes and whether it is to a wireless number or to a residential landline.

    For details, see The League’s ii Release No. 0162, which describes the various state and federal laws that may apply to telemarketing . . .


    Aug 26, 2013
  • Changes for high-cost mortgages under HOEPA effective Jan. 10, 2014

    The League is updating several releases to reflect amendments to the Truth in Lending rules (federal Regulation Z) on high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA). Covered loans are sometimes referred to as HOEPA loans or "Section 32 loans," because restrictions on these loans are found in Reg. Z §1026.32.
    Aug 23, 2013
  • Credit card ability-to-pay rules revised; Compliance required Nov. 4; impact limited under Wisconsin Marital Property Act

    The Consumer Financial Protection Bureau (CFPB) has amended Reg. Z (the Truth in Lending regulation) regarding the ability-to-pay standards for consumers to get credit cards or for credit limits on those cards to be increased. In part, the changes should make it easier for spouses or domestic partners who do not work outside the home to qualify for credit cards in their own names.
    Jul 25, 2013
  • CFPB clarifies mortgage servicing & qualified mortgage rules

    The Consumer Financial Protection Bureau (CFPB) has amended and clarified ability-to-repay and mortgage servicing rules, which take effect Jan. 10, 2014.
    Jul 11, 2013
  • NCUA loan participation rules cover state-chartered credit unions as of July 25 (Revised 7/3/13)

    On June 20, the National Credit Union Administration (NCUA) revised its loan participation rules, expanding their scope to cover all federally insured credit unions. As such, the NCUA rules will apply to all Wisconsin credit unions – whether state or federally chartered – that buy participations in loans originated by other credit unions and eligible organizations.
    Jul 3, 2013
  • CFPB issues 2014 list of "rural and underserved" counties

    This spring, the CFPB published a list of rural and underserved counties for purposes of applying the regulations that went into effect in 2013. This week, the CFPB published its 2014 list of rural and underserved counties. Menominee County and Shawano County were included in the 2013 list, but they do not appear in the 2014 list.
    Jul 3, 2013
  • NCUA loan participation rules delayed to Sept. 23

    Earlier today, The League notified Wisconsin credit unions about the new NCUA participation loan rules. Soon after we issued that Compliance Courier, the NCUA announced that it is extending the effective date of the new rules from July 25, 2013, to September 23, 2013.
    Jul 3, 2013
  • UCC changes on Monday, July 1, mean new forms are needed

    As of Monday, July 1, Wisconsin (along with most other states) is amending the laws that govern how credit unions perfect their liens on personal property as collateral. Credit unions should use new "UCC1 Financing Statement" forms and update the way they name debtors on the forms.
    Jun 28, 2013
  • Federal Garnishment Rules Updated

    Federal regulators have finalized changes to an "interim" rule that credit unions must follow when they receive a garnishment order against a member who receives certain types of federal benefit payments by direct deposit. The League summarizes the rule (and Wisconsin law on garnishments) in ii Release No. 0179 – "Non-Earnings Garnishment." The release is being updated to reflect the clarifications made in the final rule, which is effective June 28.
    Jun 20, 2013
  • Homeownership counseling rules will apply Jan. 10

    Under Consumer Financial Protection Bureau amendments to Reg. Z (the Truth in Lending regulations) and to Reg. X (regulations under the Real Estate Settlement Procedures Act or RESPA), two new homeownership counseling requirements will take effect Jan. 10, 2014. The first will require credit unions to provide lists of homeownership counseling organizations for most home loans – open- or closed-end, purchase-money or equity loans, regardless of lien position – within three business days of receiving an application. The second will require the credit union to confirm that a first-time borrower has received homeownership counseling – not just give the borrower a list of counseling organizations – before making a closed-end, dwelling-secured loan if it "may result in negative amortization." Several ii releases are being updated to cover these rules.
    Jun 19, 2013
  • Compliance TIP: Overstating the APR can violate Truth in Lending

    Lenders must always be sure to properly disclose the annual percentage rate accurately in Truth In Lending disclosures. Finance charges raise the APR higher than the contract interest rate and must be accurately stated in closed-end loan disclosures and any advertisement that states the rate. Properly disclosing the APR is one of the most sensitive issues in the compliance world.
    Jun 17, 2013
  • FinCEN answers CTR & SAR "frequently asked questions"

    The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has published two sets of frequently asked questions that should help credit unions complete Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). The SAR questions are available here, and the CTR questions are here. As of April 1, 2013, the new FinCEN CTR and FinCEN SAR reports may only be submitted electronically.
    May 30, 2013
  • CFPB amends ability-to-repay rule; sets 2014 effective date for credit insurance rule

    Today, the Consumer Financial Protection Bureau (CFPB) finalized two sets of changes to its recent mortgage lending rules.
    May 29, 2013
  • Reminder: Mortgage rule changes effective June 1

    All the recent and pending mortgage rule changes can be confusing. The League wants to remind Wisconsin credit unions of the changes going into effect June 1, 2013.
    May 17, 2013
  • Reg. E Rule on international remittance transfers Effective Oct. 28

    Last October, The League sent this Compliance Courier article with information about new Reg. E rules on international remittance transfers. Those rules were set to take effect Feb. 7, 2013, but the CFPB delayed the effective date and proposed revisions.

    The CFPB has finalized its revisions, and the final rule will take effect on Oct. 28, 2013.

    The international remittance transfers rule covers credit unions, banks and money transmitters that provide remittance transfers (i.e., international money transfers) to consumers. However, it does not apply to institutions that consistently provide 100 or fewer remittance transfers each year. Small dollar transfers of $15 or less are also excluded from the rule’s coverage.
    May 8, 2013
  • CFPB proposes to delay June 1 single-premium credit insurance rule

    Citing "uncertainty" and a "substantial compliance burden," the Consumer Financial Protection Bureau (the Bureau) has proposed to delay the effective date of its "single premium credit insurance" rule while it seeks additional comments about how the rule should be applied. It is not yet known how long the delay might last; the Bureau will also seek comments on when the rule should be made effective.
    May 8, 2013
  • Fannie Mae & Freddie Mac to buy only "qualified mortgages"

    The Federal Housing Finance Agency (FHFA) has announced that it is directing Fannie Mae and Freddie Mac to buy only mortgage loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the "ability to repay" requirements.
    May 7, 2013
  • New ii Release No. B074 summarizes Jan. 10, 2014, ability-to-repay and qualified mortgage rule

    The League is publishing a new ii Release, No. B074, which describes a Truth in Lending regulation that requires lenders to consider a borrower’s ability to repay when originating closed-end consumer credit transactions secured by a dwelling. It also describes certain presumptions of compliance for loans that are considered "qualified mortgages."
    May 6, 2013
  • New Form I-9 Required as of May 7, 2013…

    The Department of Homeland Security (DHS) has issued a new version of the Form I-9, Employment Eligibility Verification, which employers MUST use beginning on May 7, 2013. The new document is longer than the one it is replacing—nine pages altogether, six of those containing instructions. DHS also has issued an updated I-9 Handbook for Employers, which provides additional information about completing the I-9 Form and I-9 compliance.
    Apr 23, 2013
  • New rules, guidance on lending discrimination

    Recently, federal regulators have issued guidance and amended existing rules on several aspects of discrimination in lending. Even if discrimination is not intentional, lending programs that have discriminatory results may violate federal law. Wisconsin credit unions should review their mortgage lending, indirect lending, and other credit programs to limit the risks.

    This article summarizes four updates to federal lending discrimination laws.
    Apr 18, 2013
  • Loan Originator Changes in 2014

    Several of The League's ii Releases are being updated to address changes to Truth in Lending's Regulation Z. The Consumer Financial Protection Bureau (CFPB) recently amended Reg. Z §1026.36, as required by the federal Dodd-Frank Act. Effective Jan. 10, 2014, these changes will apply to "loan originators" who handle closed-end loans secured by a consumer's dwelling.
    Apr 10, 2013
  • 14-day period statement rule effective Oct. 1

    Changes to Truth in Lending's Reg. Z, effective Oct. 1, 2011, will require that for all open-end consumer credit (including HELOCs), periodic statements must be sent at least 14 days before the minimum periodic payment must be received in order to avoid being treated as late. Different 21-day timing rules already apply to credit cards and open-end credit with a grace period. In particular, this amendment is likely to affect credit unions that have quarterly statement billing cycles (with payments due monthly) for open-end consumer credit. The League advises credit unions to work with their data processors to ensure compliance with 1026.5(b)(2)(ii)(B).
    Apr 3, 2013
  • New CTR, SAR, DOEP forms now required

    As of today, be sure your credit union is only using the new, online-only versions of FinCEN’s Suspicious Activity Report (SAR), Currency Transaction Report (CTR) and Designation of Exempt Person (DOEP) forms.
    Apr 1, 2013
  • MJS: Home equity lines of credit are starting to make a comeback (March 23, 2013)

    By Paul Gores of the Journal Sentinel
    Mar 23, 2013
  • Reg. E amendment ends ATM signage rule

    In January, The League alerted you that Congress had amended the Electronic Funds Transfer Act (EFTA), eliminating the need to post a sign in a prominent and conspicuous location on or at every ATM owned or operated by the credit union stating that a fee will (or may) apply. However, we warned credit unions:

    … although the requirement has been eliminated from the EFTA, the Consumer Financial Protection Bureau (CFPB) still must make a technical amendment to Reg. E (which implements the EFTA) to remove the signage requirement from the regulation. It may be smart to wait until Reg. E is updated before removing any ATM signs.

    Mar 22, 2013
  • Compliance TIP: Postdated checks still require your attention


    Mar 21, 2013
  • Important update for credit unions that accept public deposits

    This is an important message for any credit union that accepts "public deposits" from any unit or agency of state or local government.
    Mar 14, 2013
  • CFPB issues preliminary list of rural and underserved counties

    As explained in ii Release No. B068, when a credit union makes a first-lien "higher-priced mortgage loan" (HPML) it must escrow for taxes, homeowners insurance and other insurance the credit union requires. This escrow rule has several exceptions, and a new exception takes effect June 1: Small credit unions in certain "rural" or "underserved" areas will not be required to establish escrows for first-lien HPMLs.
    Mar 14, 2013
  • Compliance TIP: Trust Account Documentation


    Mar 14, 2013
  • Compliance TIP: Changes on Trust Accounts


    Mar 14, 2013
  • Prohibition on single-premium payment protection and arbitration clauses effective June 1

    The Consumer Financial Protection Bureau (CFPB) has issued quite a few new mortgage lending rules recently, as required by the Dodd-Frank Act. Most of the regulations aren’t effective until next year, but a few go into effect June 1, 2013, including these two:
    • A credit union cannot finance, directly or indirectly, any premiums or fees for credit insurance in connection with a consumer loan secured by a dwelling. 
    • Also, residential mortgage documents cannot require arbitration for disputes.

    Mar 1, 2013
  • Q & A: Is "low credit score" permitted as a principal reason for denial?

    Q: Our loan denial (adverse action) notice does not list "low credit score" as a "Principal Reason(s) for Credit Denial, Termination, or Action Taken Concerning Credit." Can we write that in on the line labeled "Other, specify"?
    Feb 26, 2013
  • Wisconsin has raised small claims court limit


    Feb 13, 2013
  • DMV offering new type of driver license & ID card


    Jan 23, 2013
  • Effective date delayed for international remittance transfer rules

    The delay is official. The CFPB has announced, "We are temporarily delaying the effective date of our remittance rule. Thus, the rule will not take effect on February 7. A new effective date will be announced later this year."
    Jan 23, 2013
  • CFPB releases more mortgage regulations - on appraisals, loan originator compensation & single-premium credit insurance

    Everyone is eager for even more mortgage lending rules from the Consumer Financial Protection Bureau (CFPB), right? The federal regulators have been working overtime lately to issue rules required by the Dodd-Frank Act. Two new sets of rules have now been issued … in addition to the other six final rules that have come out in the last two weeks.
    Jan 22, 2013
  • CFPB finalizes mortgage servicing regulations; many credit unions exempt

    The Consumer Financial Protection Bureau (CFPB) is releasing final regulations today, designed to give consumers better tools and information when dealing with mortgage servicers. The rules will take effect on January 10, 2014.
    Jan 17, 2013
  • New HPML appraisal rules issued

    The federal agencies that regulate financial institutions are releasing new joint final rules that will require interior appraisals and appraisal notices for certain "higher-priced mortgage loans" (HPMLs), effective Jan. 18, 2014. An additional appraisal will be required, at no cost to the borrower, if the house is being "flipped."
    Jan 17, 2013
  • Three new mortgage loan rules issued

    The Consumer Financial Protection Bureau (CFPB or the Bureau) has issued three new mortgage lending rules:
    • Ability-to-repay and "qualified mortgage" rules;
    • Escrow rules; and
    • High-cost mortgage loan rules under the Homeownership and Equity Protection Act (HOEPA) and homeownership counseling rules.

    Jan 11, 2013
  • ATM signage no longer required by federal statute

    In late December, President Obama signed a bill into law, eliminating an ATM signage requirement under the Electronic Funds Transfer Act (EFTA). When credit unions charge a fee to a consumer using a non-credit union ATM network card or debit card, the EFTA used to require the credit union to post a sign in a prominent and conspicuous location on or at every ATM owned or operated by the credit union stating that a fee will (or may) apply. The new law eliminates that requirement.
    Jan 8, 2013
  • New Year means new compliance changes

    Now that the holidays are over, the Legal Affairs staff thought it would be a good idea to remind Wisconsin credit unions of all the compliance changes that took effect as of Jan. 1, and to look ahead to what's on the horizon for compliance in 2013. Be sure your staff is on top of these changes, so your credit union can stay in compliance.
    Jan 2, 2013
  • HMDA exemption increased to 42 million

    The Consumer Financial Protection Bureau (CFPB) has published its annual notice of the asset-size exemption threshold for depository institutions under Reg. C, which implements the Home Mortgage Disclosure Act (HMDA). The asset-size exemption for depository institutions is being increased to $42 million (up from $41 million), effective Dec. 31, 2012.
    Dec 31, 2012
  • FDIC outlines mobile payment risks, compliance issue

    The Federal Deposit Insurance Corporation has stepped forward with much needed guidance on the various risks and compliance issues associated with mobile payments. "Mobile Payments: An Evolving Landscape" is a 9-page article in the FDIC's Supervisory Insight (Winter 2012). See pp. 3-12 at
    www.fdic.gov/regulations/examinations/supervisory/insights/siwin12/SIwinter12.pdf.

    The FDIC cautions that mobile technology vendors may not be knowledgeable about the regulatory environment in which financial institutions operate. A credit union's oversight of the third party relationship is critically important.


    Dec 26, 2012
  • NCUA issues guidance on unlimited share insurance & corporate share

    With just a few days to go before coverage expires, the National Credit Union Administration has now published Letter to Credit Unions No. 12-CU-14, with guidance.

    The NCUA letter encourages credit unions to:

    • Evaluate whether your credit union holds member accounts with the temporary unlimited insurance coverage.
    • Communicate to your membership the potential changes in insurance coverage occurring on January 1, 2013.
    • Ensure your account disclosures properly disclose the level of insurance coverage.
    • Make your membership aware of NCUA’s Share Insurance Tool Kit on our website (http://www.ncua.gov/DataApps/Pages/SI-Tools.aspx). The Tool Kit is designed to estimate the insurance coverage on member accounts.

    Dec 19, 2012
  • Unlimited share insurance set to expire

    The NCUA Report for December 2012 (p. 7) reminds credit unions that unlimited share insurance for noninterest bearing transaction accounts ends December 31, 2012, and it encourages credit unions to notify members of this change. The NCUA says that it will post additional information on its website.
    Dec 6, 2012
  • DFI sets 2013 rate for required escrow accounts at 0.20%

    The Wisconsin Department of Financial Institutions has set the 2013 mandatory interest rate on required escrow accounts at 0.20% (down from 0.26% in 2012).
    Nov 29, 2012
  • Remittance transfer rules deadline extended, changes proposed

    The CFPB says it plans to propose these three changes:

    • Errors resulting from incorrect account numbers provided by senders of remittance transfers. Where the provider can demonstrate that the consumer provided the incorrect information, the provider would be required to try to recover the funds but would not be liable for the funds if those efforts are unsuccessful.
    • Disclosure of certain foreign taxes and third-party fees. Credit unions that provide remittances could use information from published bank fee schedules to disclose the foreign taxes and fees assessed by the financial institution receiving transfers.
    • Disclosure of regional and local taxes assessed in foreign countries. The obligation for providers to disclose foreign taxes imposed on remittance transfers would be limited to taxes imposed at the national level, not taxes that may be imposed by foreign, sub-national jurisdictions.

    Nov 28, 2012
  • CFPB delays mortgage disclosure deadline


    Nov 19, 2012
  • DMV updates title to lien holder information

    The DMV recently released the following updated information regarding these programs.

    • Option for lenders to enter alternate Delivery Information upon release. The new title will be printed and sent from DMV directly to the one-time name and address provided during release. For complete business rules, please see: http://liens.dot.wi.gov
    • Inquiry and customer receipts in 3rd party systems will now display complete Title to Lien Holder information. This includes Delivery Information, if title is paper or electronic, and receipts showing most current Wisconsin title number. Expect information on 3rd party system features from DMV or your provider.
    • Release liens directly through the service provider. Two Electronic Service Providers (ESPs) are actively participating in DMV’s electronic title delivery program. Lenders using either ESP will be able to release liens directly through the service provider. Lenders also have the ability to use an optional one-time name and address delivery through ESP lien release.

    Nov 19, 2012
  • Wisconsin DOR Updates Process to Levy on Accounts

    The Wisconsin Department of Revenue (DOR) is improving its process for levying on accounts at credit unions and other financial institutions.

    The DOR has redesigned its Notice of Levy form, which is sent to a financial institution to seize money in an account of someone with a tax delinquency. The new notice uses plain language and a simpler layout to make it easier to understand and more efficient for the DOR to process. The form includes instructions and a Levy Response form, along with a Notice of Levy Payment Voucher.


    Nov 19, 2012
  • CFPB webinar on International Remittance Transfer Rule

    The federal Consumer Financial Protection Bureau will hold a 90 minute live webinar on this remittance rule next Tuesday, Oct. 16, at 1:30 p.m. (CST). They will be giving an overview of the remittance transfer rules and answer questions. No password or registration is needed.
    Oct 12, 2012
  • International remittance transfer rules effective Feb. 7, 2013


    Oct 2, 2012
  • September 30 deadline draws near for IRR policy and program

    NCUA’s new requirement for a written Interest Rate Risk Management policy and program takes effect on September 30, 2012. The League describes the rule in new ii Release 0181 available here. The rule applies to about half of the federally-insured credit unions (FICUs) in the country, including any credit union with:
    • Assets of more than $50 million;
    • Assets of $10 million or more but not greater than $50 million, but only if the total of first mortgage loans it holds combined with total investments with maturities greater than five years, as reported on the most recent call report, is equal to or greater than 100% of its net worth.

    Sep 14, 2012
  • FinCEN to host webinars on new CTR, SAR & DOEP forms

    In April, The League alerted you that by March 31, 2013, credit unions will be required to file new versions of the Suspicious Activity Report (SAR) and Currency Transaction Report (CTR) forms required by the Bank Secrecy Act. These reports replace the forms credit unions now use – FinCEN Form 104 (CTR) and TD F 90-22.47 (SAR), which are now called “legacy reports.”
    Sep 13, 2012
  • Due diligence required on open-end lending plans with closed-end features


    Sep 13, 2012
  • NCUA webinar to review TDR, workout, nonaccruals rule


    Sep 10, 2012
  • CUs asked to take survey on international remittances

    On Aug. 7, 2012, the CFPB released a final rule amending Regulation E related to remittance transfers. Credit unions that are affected by this rule must comply with it by Feb. 7, 2013.
    Sep 5, 2012
  • NCUA reminder: Low-income CUs exempt from MBL cap

    The National Credit Union Administration (NCUA) is sending letters to nearly 1,000 credit unions nationwide that qualify for (but haven’t gotten) designations as low-income credit unions. One benefit of that designation is an exemption from the member business lending (MBL) aggregate loan limits under federal and Wisconsin law.
    Aug 7, 2012
  • NCUA issues new MFOEL guidance; CUs should review and make needed changes


    Jul 24, 2012
  • DOT: Recent statute changes affect vehicle titling in Wisconsin


    Jul 17, 2012
  • Are overdraft practices putting your credit union at risk?

    We’ve all heard about rising consumer dissatisfaction with banks’ high overdraft fees. Responding to consumer complaints, both courts and regulators are scrutinizing overdraft practices. The League cautions Wisconsin credit unions to look closely at overdraft fees, disclosures, marketing, and overdraft practices – to avoid member complaints, the risk of legal claims, and examiner scrutiny.
    Jul 11, 2012
  • IRS expands reporting for dividends/interest paid to non-citizens


    Jul 5, 2012
  • Starting soon: Medicaid Asset Verification Data Match Program

    Credit union will soon need to participate in a new data match program, to help the state determine whether people are eligible for Medicaid.
    Jun 29, 2012
  • DMV delays electronic title, title to lienholder procedures but electronic lien processing to proceed


    Jun 29, 2012
  • NCUA final rule addresses loan workouts, nonaccrual policy, and regulatory reporting of TDR loans

    NCUA has finalized a requirement for federally insured credit unions to maintain written policies that address the management of loan workout arrangements and nonaccrual standards for loans, consistent with industry practice or FFIEC requirements. The final rule includes guidelines that will assist credit unions in complying with the rule, including the regulatory reporting of troubled debt restructured loans in Call Reports.


    Jun 28, 2012
  • Congress approves another 60-day flood insurance extension

    Congress has voted to approve another short-term extension of the National Flood Insurance Program (NFIP) for 60 days, until July 31. President Obama is expected to sign the legislation into law before the current NFIP authorization expires at 12:01 a.m. tomorrow.
    Jun 4, 2012
  • Q & A: Where can I get an audit checklist for our Mortgage Loan Origination registration program?


    May 31, 2012
  • DOT announces July 1 changes to vehicle title, lien procedures

    The Wisconsin Department of Transportation has posted the following description of upcoming changes to the procedures for motor vehicle titles, liens and releases.
    May 7, 2012
  • NLRB Poster Second Postponement


    May 2, 2012
  • Bylaw amendment declares commitment against conversion

    Credit unions can declare their commitment to remaining not-for-profit, member-owned financial cooperatives, simply by updating their bylaws. The Wisconsin Office of Credit Unions has pre-approved the following language to be added to the state’s Model Credit Union Bylaws:

    Credit Union Charter Status. It is the intention of the Board of Directors of this credit union that the credit union shall continue as a not-for-profit financial cooperative in perpetuity.


    May 1, 2012
  • NCUA requires written Interest Rate Risk Management policies by Sept. 30

    The NCUA has imposed a new requirement for written Interest Rate Risk Management policies and programs to be in place by September 30, 2012. The rule applies to about half of the federally-insured credit unions (FICUs) in the country, including any credit union with:

    • Assets of more than $50 million;
    • Assets of $10 million or more but not greater than $50 million, but only if the total of first mortgage loans it holds combined with total investments with maturities greater than five years, as reported on the most recent call report, is equal to or greater than 100% of its net worth.

    Apr 30, 2012
  • Use CFPB’s updated model disclosure forms by Jan. 1

    By Jan. 1, 2013, credit unions will need to start using several disclosure forms that have been updated by the Consumer Financial Protection Bureau (CFPB).
    Apr 30, 2012
  • NCUA clarifies loan originator compensation rules

    The NCUA has issued a Regulatory Alert to clarify the federal limits on mortgage loan originator compensation and how those limits affect contributions to profit sharing and pension plans:

    • Credit unions may now make contributions to Qualified Plans for loan originators out of a pool of profits derived from loans originated by employees.
    • By January 21, 2013, the Consumer Financial Protection Bureau (CFPB) anticipates releasing more pointed guidance as to how the Compensation Rules apply to profit sharing arrangements not considered Qualified Plans. If your credit union has a discretionary non-qualified pension plan tied to profit targets, you should amend the plan to exclude income from closed-end mortgage loan originations, pending additional guidance from CFPB. If your credit union has a pension plan that establishes the employer’s contribution amount based on a loan originator’s income, that plan is particularly at risk.

    Apr 26, 2012
  • How’s Your Overdraft Protection Program?

    Regulatory scrutiny, lawsuits both on the rise; respond to CUNA survey by Friday, April 27

    The federal Consumer Financial Protection Bureau (CFPB) says it is considering new disclosures and rules for overdraft protection programs, to protect consumers from potentially unfair or abusive practices. The CFPB has not proposed rules yet, but it likely will soon. The new regulatory scrutiny is in response to consumers’ lawsuits against several banks.

    To help prepare for any new proposed regulations, credit unions are asked to complete CUNA’s confidential online survey about overdraft protection programs. CUNA will aggregate the results to share with the CFPB in upcoming rulemaking.
    Apr 24, 2012
  • CFPB gives “heads-up” on approaching mortgage rulemaking

    CFPB Outlines Borrower-Friendly Approach to Mortgage Servicing 


    Apr 9, 2012
  • Bank Secrecy Act: New forms, e-filing, other changes coming soon

    Quite a few changes are in the works for Bank Secrecy Act (BSA) compliance. BSA reports, like Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) will have to be filed electronically, and new versions of those report forms are now available. In addition, the Financial Crimes Enforcement Network (FinCEN) has issued several advisories about BSA compliance and future rulemaking.
    Apr 5, 2012
  • FinCEN issues advisory on tax refund fraud, ID Theft

    The Financial Crimes Enforcement Network (FinCEN) is issuing this Advisory to assist financial institutions with identifying tax refund fraud and reporting the activity through the filing of Suspicious Activity Reports (SARs).

    Identity theft can be a precursor to tax refund fraud because individual income tax returns filed in the United States are tracked and processed by Taxpayer Identification Numbers (TIN) and the individual taxpayer names associated with these numbers. Fraudulent actors obtain TINs through various methods of identity theft, including phishing schemes and the establishment of fraudulent tax preparation businesses.1 In response to this problem, the IRS has developed a comprehensive strategy that is focused on preventing, detecting, and resolving instances of tax-related identity theft crimes.2 This Advisory is in furtherance of the comprehensive strategy.


    Apr 4, 2012
  • CTRs, SARs & other BSA forms must be e-filed as of July 1, 2012; Deadline is March 26 for CU to seek exemption

    Under new FinCEN requirements, all financial institutions, including credit unions, must electronically file (e-file) BSA reports – such as Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) – by July 1, 2012.

    Credit unions can apply for temporary hardship exemptions from the electronic filing requirement, but only in limited circumstances.

    Several resources can help credit unions understand the e-filing requirement:

    • FinCEN has posted a recorded instructional presentation (“Introduction to the BSA E-Filing System”) to help filers with the new requirements.
    • Click here for the press release “FinCEN reports going paperless.”
    • For more information about the benefits of using BSA E-Filing, please review theE-Filing Section on FinCEN's Web site.
    • FinCEN has issued a brochure that highlights the benefits of E-Filing.
    • For technology-related questions specific to E-Filing, please call the BSA E-Filing Help desk at 1-866-346-9478, Option 1.

    Feb 24, 2012
  • Federal robocall rules finalized

    The Federal Communications Commission (FCC) has issued news rules on autodialed or prerecorded telemarketing calls (also known as “robocalls”) that are made to wireless numbers or residential phone lines. Credit unions are subject to the new rules, and The League is updating is ii Release No. 0162, “Telemarketing by Wisconsin Credit Unions,”to reflect them.
    Feb 22, 2012
  • 2011 HMDA exemption increased to 41 million


    Feb 16, 2012
  • Consider compliance, HR and other issues when it comes to social media

    Credit unions ask more and more often about social media sites like Facebook, LinkedIn or Twitter. They can offer new ways to market the credit union and communicate with members, but there are potential risks and benefits to weigh before jumping into social media.

    Social media can be used in different ways, so credit unions need to consider various legal issues, including:

    • Human resources issues, such as concerns about use of credit union equipment or employee statements about the credit union. These can involve human resources policies and employment laws.
    • Advertising and compliance issues, when the credit union uses social media to promote the credit union and its services.
    • Privacy concerns, if members use social media to communicate with the credit union.

    Feb 12, 2012
  • All debit card issuers affected by network exclusivity and routing requirements April 1


    Feb 7, 2012
  • Wis. Dept. of Revenue provides guidance on Remote Deposit Capture services

    The Wisconsin Department of Revenue has published guidance on the state’s Sales and Use Tax treatment of remote deposit capture services.

    This guidance was published on pp. 12-13 of the January 2012 issue of the Wisconsin Tax Bulletin www.revenue.wi.gov/ise/wtb/174art.pdf.  


    Feb 2, 2012
  • OFAC introduces online search tool

    The Office of Foreign Assets Control (OFAC) has released a new online search tool called"SDN Search" that credit unions can use to search the OFAC list of “Specially Designated Nationals.” The results are viewable on-screen, are printable, and can be saved as a spreadsheet. SDN Search is available at: http://sdnsearch.ofac.treas.gov/
    Jan 26, 2012
  • Year-end reporting, annual meeting releases help keep you on track

    The League’s ii Releases No. 0130 Year-End Reporting and No. 0061 Annual Meetings are two tools The League has offered for years to help credit unions keep their houses in order.
    Jan 25, 2012
  • Consumer rulemaking authority shifts to CFPB, enforcement does not

    Rulemaking authority for a number of consumer regulations affecting credit unions has been shifted from the NCUA, the Federal Reserve Board, HUD, Federal Trade Commission and other federal regulators to the Consumer Financial Protection Bureau ("CFPB"), effective January 1, 2012. The Dodd-Frank Act created the CFPB and mandated the transfer.

    Rulemaking has shifted to the CFPB for these regulations, but enforcement authority has not - unless a credit union is over $10 billion in assets. Currently, there are only three credit unions in the country over the threshold.


    Jan 18, 2012
  • NLRB Posting Requirement Put Off Until April


    Jan 5, 2012
  • DFI sets 2012 rate for required escrow accounts at 0.26%

    The Wisconsin Department of Financial Institutions has set the 2012 mandatory interest rate on required escrow accounts at 0.26% (down from 0.37% in 2011).
    Dec 28, 2011
  • Interest on money judgments now tied to prime rate

    Civil money judgments entered in Wisconsin state courts used to accrue interest at 12% annually. Under a law recently signed by Gov. Walker and effective December 2 of this year, judgment interest is now tied to the prime rate. Find the details here.
    Dec 23, 2011
  • ATM lawsuit risk remains a serious threat

    CUNA Mutual Group is again warning credit unions nationwide about the threat of lawsuits over inadequate ATM disclosures.
    Dec 22, 2011
  • Change to rules on lawyer’s trust accounts takes effect January 1, 2011

    The Wisconsin Supreme Court has amended its rules governing the state’s lawyers, restricting their ability to hold their clients’ funds in trust accounts at credit unions after Jan. 1, 2011. The state rules also affect rates pay on attorney trust accounts, and they impose annual certification requirements for institutions that hold such accounts.
     
    The funds an attorney holds in a trust account do not belong to the attorney but to his/her clients. If the clients are not credit union members, the National Credit Union Share Insurance Fund (NCUSIF) will not insure the funds, and the new rules say that the lawyer cannot keep the account at the credit union.
    Dec 9, 2011
  • DECEMBER 26 AND JANUARY 2 ARE BUSINESS DAYS FOR RESCISSION PURPOSES


    Dec 1, 2011
  • Follow vendors' advice, or MFOEL programs may violate Reg. Z


    Nov 29, 2011
  • Concealed carry sample policies & sign now online

    Wisconsin's new concealed weapons law took effect Nov. 1, 2011. The League has made three concealed carry sample policies available for credit unions:
     
    • One for credit unions that will post to ban third parties (members, vendors, etc.) from carrying weapons;
    • Another that informs employees that they are not permitted to carry weapons while conducting credit union business; and
    • A third that permits employees to carry weapons while conducting credit union business.

    Nov 3, 2011
  • MLO registration renewal starts Nov. 1

    During 2011, the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) required many credit unions and employees who meet the definition of a residential mortgage loan originator (MLO) to register with the Nationwide Mortgage Licensing System (NMLS). See The League's ii Release No. B070 for details.
    Oct 18, 2011
  • NLRB postpones effective date requiring new employment poster


    Oct 10, 2011
  • Do you have BSA responsibilities to wind up before year-end?

    The League can help! We offer independent testing, training opportunities, sample policies, risk assessment templates, and other resources to help you carry out your BSA and OFAC responsibilities.

    Credit unions are expected to obtain independent testing of their Bank Secrecy Act and OFAC compliance programs every 12 to 18 months. Contact John C. Engel at The League for a proposal for the League to do a quality review at a very competitive price. There are still openings for reviews before year-end and in the new year.


    Oct 7, 2011
  • To Post or Not To Post: What’s a Credit Union To Do?


    Determining whether to post will obviously require thoughtful consideration for each credit union. The purpose of this memo is to provide some guidance and insights for management and boards to use as they decide what to do.



    Sep 13, 2011
  • Credit unions subject to loan originator compensation and anti-steering rules


    Aug 30, 2011
  • FTC rule prohibits misrepresentations in mortgage marketing; sets new recordkeeping requirements

    A new FTC rule taking effect Friday, August 19, 2011 prohibits misrepresentations in any commercial communications relating to any mortgage credit product. The rule applies to communications relating to loans secured by real property or a dwelling, so it includes mobile home lenders.
     
    Various other state and federal rules already prohibit misrepresentations in advertisements, so what’s unusual about this one? 

    • It provides a non-exclusive list of 19 aspects of a loan for which misrepresentations are prohibited;
    • It imposes 24-month recordkeeping requirements; and
    • The FTC or the new Consumer Financial Protection Bureau can seek civil penalties under the Federal Trade Commission Act against those who violate the rule. In addition, states can enforce the rules by bringing civil actions in Federal district court.

    Aug 17, 2011
  • Are you at risk for ATM fee disclosure lawsuits?

    The League urges that credit unions that have not begun documenting regular inspections of the surcharge disclosures on their ATMs do so now.
    Aug 11, 2011
  • DOJ releases concealed carry Q&A


    Of particular interest to credit unions, the material on restrictions by employers starts on p. 31 of this Q&A, followed by questions and answers about restrictions by businesses and property owners. The 56-page document also covers licensing requirements, the rules for law enforcement officers, out-of-state licenses, etc.





    Aug 1, 2011
  • Do you have any compliance challenges you’d like to discuss with other credit unions?


    Jul 28, 2011
  • CUs with electronic services must follow new guidance on Internet banking authentication by January 2012

    Federal regulators (including the NCUA) have jointly issued new guidance on “Authentication in Internet Banking,” supplementing and reinforcing similar guidance they issued in 2005.  NCUA Letter to Credit Unions 11-CU-09 explains that compliance with the new guidance is expected by year-end:
     
    Federally insured credit unions will be expected to adapt appropriate strategies from the supplement to strengthen and enhance controls by January 2012.  Beginning in 2012, at credit unions offering electronic services, NCUA examiners will evaluate these controls under the enhanced expectations outlined in the supplement.
     
    The League’s ii Release No. 0171 summarizes the 2005 guidance. It is being updated to add material from this new 2011 supplement.
    Jul 25, 2011
  • SAFE Act deadline July 29


    Jul 21, 2011
  • To Post or Not to Post-That is the Question: Wisconsin's new conceal carry law


    Jul 20, 2011
  • Reg. Z’s 50,000 dollar threshold has little effect on use of League forms

    As of July 21, the dollar limit exemption for Reg. Z rises from $25,000 to $50,000. The exemption does not apply to loans secured by real estate or a dwelling.
    Jul 20, 2011
  • Credit unions face decisions on concealed weapons law


    On Friday, July 8, Wisconsin Governor Scott Walker signed the concealed weapons bill into law. It allows individuals with licenses to carry concealed handguns, electric weapons (such as Tasers), knives other than switchblades, and billy clubs. The law will take effect on November 1, 2011.

    Credit unions and other businesses will have the option to post signs prohibiting guns in their buildings and on their grounds. They may also prohibit employees from carrying weapons at work. However, the law only grants immunity from liability if restrictions on weapons are not imposed.



    Jul 11, 2011
  • Changes Finalized for Risk-Based Pricing Notices; July 21 is Compliance Deadline


    Jul 8, 2011
  • UPDATED: League prepares adverse action forms for credit score disclosure, eff. July 21, 2011


    Jul 7, 2011
  • CUNA publishes analysis of interchange fee rules


    Jul 6, 2011
  • The League describes recent WCUL form revisions.


    Jul 1, 2011
  • Technical changes to CTR, SAR & CMIR; Use new forms by September


    Jun 20, 2011
  • Fed adjusts Reg. Z threshold for 2012 to 51,800

    In a March Compliance Courier article, we alerted Wisconsin credit unions that as of July 21, 2011, the Truth in Lending Act (and Reg. Z) will apply to consumer credit transactions up to $50,000, compared with $25,000 currently. The same change is being made to the Consumer Leasing Act (Reg. M).
    Jun 15, 2011
  • CUNA suggests alternatives for credit counseling toll-free number


    Jun 6, 2011
  • Unlimited NCUA Insurance Coverage for Noninterest-bearing Transaction Accounts; Notices required as of June 24, 2011


    May 31, 2011
  • NCUA advertising rules amended; compliance required as of Jan. 1, 2012; 15-second TV & radio ads covered

    The National Credit Union Administration (NCUA) has amended the rules on when credit unions must use its "official advertising statement." Compliance with the amended rules is required after Jan. 1, 2012. Credit unions should review their ads now, though, because even existing ad campaigns will be expected to comply as of Jan. 1.
    May 24, 2011
  • NCUA to address ALLL issues in May 26 webinar

    The National Credit Union Administration will host a webinar Thursday, May 26, 2011 entitled “Current Allowance for Loan and Lease Losses Exam Issues and Practical Ways to Factor Q&E Adjustments into the Methodology.”
    May 17, 2011
  • CARD Act rules “clarified,” effective Oct. 1

    The Federal Reserve Board has amended its Truth in Lending regulations (Reg. Z) to clarify the Reg. Z changes that went into effect under the Credit CARD Act. Compliance with these changes is required as of October 1, 2011.
     
    Perhaps most significantly, the amended rules expand the definition of “credit card,” and they broaden the requirement to review rate increases where a credit union switches its cards from fixed to variable rate (or vice versa). These and numerous other changes mean that credit unions should review their application and solicitation disclosures, card agreements, periodic statements, change-in-terms procedures, ads, etc. for compliance.
     
    The League’s Guide to the Feb. 22 Reg. Z Changes summarized the Reg. Z CARD Act changes that went into effect in February 2010. Other resources, including links to a set of frequently asked questions from CUNA, are available on The League’s Compliance page, under Topics A to Z > Credit Cards.
    May 10, 2011
  • Post-dated rescission form extends right to cancel to three years


    May 3, 2011
  • Does your credit union have the policies it needs?

    Recently, a few credit unions have asked the Compliance staff for a list of needed policies. Unfortunately, there is no definitive list. State and federal regulations only require a few specific policies, but each credit union is likely to need other policies, depending on the services it offers.
    Apr 25, 2011
  • Consumer group claims TIS violations; urges “bank at a credit union”

    Is your staff trained to give Truth in Savings account and fee disclosures to consumers upon request? A consumer advocacy group says the rules are being violated all too often at banks and credit unions.
    Apr 20, 2011
  • New Reg. Z Valuation Independence rules for open- and closed-end credit effective April 1, 2011; Interagency Appraisal and Evaluation Guidelines revised; & ii Release B008 rewritten

    The Federal Truth in Lending regulation (Reg. Z) has been amended to implement yet another provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). New section § 226.42 establishes requirements for valuation independence for open- and closed-end consumer credit transactions secured by consumers’ principal dwellings. (Substantially similar requirements, which had been in place for closed-end credit only under section § 226.36(b), were removed at the same time.)
    Apr 6, 2011
  • Reg. Z threshold increasing to 50,000 July 21; Wisconsin Consumer Act still at 25,000; League forms to be revised


    Mar 29, 2011
  • Next day availability increasing to 200 on July 21; credit unions must update disclosures & notify members.


    Mar 25, 2011
  • SAFE Act registration step-by-step.


    Mar 22, 2011
  • Noninterest-bearing transaction accounts have unlimited NCUA insurance coverage through December 31, 2012

    The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the NCUA to fully insure noninterest-bearing transaction accounts as of July 21, 2010, through December 31, 2012. This requirement was self-implementing and is already in place. This means that transaction accounts – typically, checking accounts – that do not earn interest (or dividends) are fully insured regardless of the amount on deposit.
    Mar 9, 2011
  • Escrow Rules Change for Higher-Priced "Jumbo" Loan April 1; Other Escrow Changes Proposed

    As of April 1, new Truth in Lending rules will set a higher threshold at which escrow accounts will be required for first-lien, higher-priced mortgages that qualify as “jumbo” loans.
    Mar 4, 2011
  • Federal garnishment rules effective May 1

    Federal regulators have issued new “interim final rules” on the garnishment of federal benefits.
     
    Starting May 1, 2011, credit unions must follow specific procedures when they get a garnishment order or summons against an account holder who has received certain types of federal benefit payments by direct deposit. Credit unions must determine the sum of such deposits during a two-month “lookback” period and be sure that the account holder has access to that amount or to the current balance of the account, whichever is less.
    Mar 1, 2011
  • CU Case Strengthens Rights of Foreclosing Lenders that Hold 1st and 2nd Mortgages

    In a case involving Wisconsin’s Harbor Credit Union, a Wisconsin appeals court has ruled that when a foreclosing lender waives the right to a deficiency judgment on one mortgage (thereby shortening the redemption period from 12 months to six months), it does not lose that right to a shortened redemption period if it later asks for a money judgment on a second defaulted mortgage it holds against the same property.
    Feb 28, 2011
  • SAFE Act Registration Site Opens


    Jan 31, 2011
  • CMG reports significant spike in ATM fee disclosure lawsuits


    Jan 19, 2011
  • Prepare now for SAFE Act registration; workshop announced


    Jan 13, 2011
  • TIL requires new closed-end forms eff. Jan. 30, 2011

    This Compliance Courier has important news for all credit unions that grant real estate loans, or loans secured by any dwelling (including mobile homes treated as personal property). WCUL Forms #82019 and #82041 will be replaced by three new forms: (Find details here.) 

    • #82045 – Federal TIL Disclosures (Fixed Rate). This form may be used for certain fixed-rate closed-end loans secured by real estate or a dwelling, regardless of whether subject to the WCA.
    • #82046 – Federal TIL Disclosures (Variable Rate). This form may be used for certain variable rate closed-end loans secured by real estate or a dwelling, regardless of whether subject to the WCA.
    • #82057 – Federal TIL Disclosures (Personal). This form may be used for certain closed-end loans subject to Truth in Lending if not secured by real estate or a dwelling, regardless of whether subject to the WCA. 

    Jan 11, 2011
  • OCC websites offers updated APR, APY verification software

    Software that examiners may use to verify the accuracy of Annual Percentage Rates (APRs) for closed-end loans subject to Truth in Lending and Annual Percentage Yields (APYs) for accounts subject to Truth in Savings.
    Jan 3, 2011
  • NCUA posts SAFE Act mortgage loan originator registration update


    Dec 27, 2010
  • DFI sets 2011 rate for required escrow accounts at 0.37%


    Dec 17, 2010
  • Risk-Based pricing notice exam procedures released

    The Federal Reserve has released its “Interagency Examination Procedures for the Regulation on Risk-Based Pricing Notices.” 
    Dec 9, 2010
  • Use only updated NCUA official signs by March 2

    The NCUA has updated its regulations on displaying the official NCUA sign, as well. In the past, the sign referred to the old share insurance limit of $100,000, and credit unions were allowed to alter the sign to reflect the increase. The new sign makes it clear that members’ savings are insured “to at least $250,000.”
    Dec 9, 2010
  • NCUA, other federal regulators, issue new appraisal guidelines

    The federal financial regulators, including the National Credit Union Administration (NCUA), have issued new supervisory guidance today on sound practices for real estate appraisals and evaluations. The Interagency Appraisal and Evaluation Guidelines, which replace 1994 guidelines, explain the minimum regulatory standards for appraisals.
    Dec 6, 2010
  • NCUA calls for monitoring of concentration risk

    Credit union officials and management have a fiduciary responsibility to identify, measure, monitor, and control concentration risk. The ultimate responsibility for setting the level of concentration risk assumed by the credit union rests with the board of directors. Senior management is responsible for maintaining concentration risk within the parameters set by the board of directors.

    The board of directors must establish a policy which addresses its philosophy on concentration risk, limits commensurate with net worth levels, and the rationale as to how the limits fit into the overall strategic plan of the credit union. The parameters set by the board should be specific to each portfolio and should include limits on loan types, share types, third party relationship exposure, etc. The risk limits should correlate to the overall growth objectives, financial targets, and net worth plan.
    Nov 29, 2010
  • CUs exempt from new state law on payday and vehicle title loans

    A Wisconsin law taking effect Jan 1, 2011, regulates payday loans and motor vehicle title loans, but it has exceptions for credit unions and other financial institutions. Originally, the law also had exceptions for those entities’ affiliates; however, the governor vetoed that provision. As a result, the law will apply to companies affiliated with credit unions, such as credit union service organizations (CUSOs).
     
    The term “payday loan” means a transaction where a lender holds a check or an authorization for an electronic funds transfer in exchange for a loan. Under the new law, payday lenders can try to negotiate that check or initiate that electronic funds transfer only once. This may be welcome news for some credit unions, where payday lenders presented members’ checks repeatedly.
    Nov 29, 2010
  • ATM accessibility rules changing

    New rules under the Americans with Disabilities Act (the “ADA”) may require credit unions to upgrade their ATMs.
    Nov 16, 2010
  • Keep phone numbers handy for BSA and OFAC hotlines

    Credit unions are aware that they can call federal regulators with their questions relating to Bank Secrecy Act (BSA) and Office of Foreign Assets Control (OFAC) reporting and forms. However, it can become difficult to keep track of which hotline to call in a given situation. Here are the current hotlines that are available: 
    • Call the Financial Institutions Hotline at (866) 556-3974 immediately to report suspicious transactions that may relate to terrorist activity.
    • Call the FinCEN Regulatory Help Line at (800) 949-2732 for questions regarding:
      • Currency transacting reporting, or exemptions,
      • Suspicious Activity Reporting, and
      • Assistance with 314(a) or 314(b) information sharing programs (access, changing passwords, etc.).
    • Call the IRS Enterprise Computing Center Hotline at (866) 270-0733 with your questions about:
      • How to complete BSA forms including the CTR, SAR, and the Designation of Exempt Person,
      • How to amend a filed BSA form,
      • Verification of a BSA form filed, and
      • Backfiling determinations.
    • Call the Office of Foreign Assets Control at (800) 540-6322 if you have questions regarding an OFAC hit or match.
    • Call the BSA e-Filing Help Desk at (866) 346-9478 if you have questions about how to file a BSA form electronically,
    • Contact the NCUA to update or change your point of contact for 314(a) information sharing program.

    Nov 4, 2010
  • FINCEN study examines rise in identity theft SARs

    There is no doubt that identity theft is on the rise. Credit unions need to be aware of the importance of filing suspicious activity reports in connection with identity theft.
     
    FINCEN issued a new study, Identity Theft Trends, Patterns, and Typologies Reported in Suspicious Activity Reports, yesterday to coincide with National Protect Your Identity Week, October 17-23. The study describes SARS filed by financial institutions in connection with identity theft. The study reveals just how important SARs can be to deterring illicit activity, such as identity theft.
    Oct 20, 2010
  • Several WCUL application, loan forms revised


    Oct 19, 2010
  • CSBS seeks comments on mortgage loan originator fees


    Oct 18, 2010
  • Credit card penalty fee disclosure deadline is Dec. 1

    By Dec. 1, credit unions need to update their credit card disclosures to reflect recent Reg. Z final rules that limit penalty charges, like late payment and over-the-limit fees. Credit unions should work with their card processors to be sure their disclosures are up-to-date.
    Sep 28, 2010
  • Risk-Based pricing notices needed Jan. 1, 2011

    Effective January 1, 2011, a credit union that uses risk-based pricing must give consumers a notice when, based on the consumer’s credit report, it offers credit on terms that are materially less favorable than it offers to a substantial proportion of other consumers. The rules include three methods credit unions can use to determine which consumers should get the notice. The notice does not include the consumer’s score, but it gives the consumer a right to get a copy of his/her consumer report.
    Sep 20, 2010
  • The new reality: DORs and LUAs

    In these economically challenging times, credit unions all over the country—including Wisconsin—are finding themselves on the receiving end of Documents of Resolution or Letters of Understanding.  Even executives and directors of credit unions with healthy capital cushions and solid ROAs are getting them.  With the continuing slow economic climate and with financial failures increasing, state and federal examiners are acting more quickly and putting more in writing than they have in the past—in an attempt to minimize additional losses to the NCUSIF and reduce the need for additional premiums.  And they are expecting credit unions to pay attention to what is in the documents and react quickly to the problems cited.
     
    Because of this new regulatory reality and because their ramifications to a credit union can be so substantial, it’s essential to understand just what DORs and LUAs are, how they are different, and how to respond to them.
    Sep 17, 2010
  • Bank regulator warns of security risk posed by information stored on photocopiers, fax machines and printers

    Credit unions need to be aware of the potential risk to data security by photocopiers, fax machines and printers. Often times, these devices have a hard drive or flash memory that captures and stores digital images of documents that are copied, transmitted or printed on the device. Sensitive credit union and member information in loan documents, credit reports, and other business documents could be at risk.
    Sep 16, 2010
  • NCUA scrutinizes indirect lending

    The NCUA is continuing to emphasize diligence on indirect lending programs, issuing a Letter to Credit Unions on the topic, No. 10-CU-15 
     http://www.ncua.gov/Resources/Documents/LCU2010-15.pdf.
     
    In a speech last November, NCUA chairman Debbie Matz stated, "Credit unions need to be doing their own due diligence, pulling credit reports and practicing sound underwriting. If it’s done properly, indirect lending is a fine way to grow business. But in too many cases where it was not done properly, indirect lending has steered credit unions into insolvency."
     
    The new letter is addressed to all federally-insured credit unions and outlines risk management practices that are appropriate and necessary to soundly manage an indirect lending program.
    Aug 31, 2010
  • Fed announces Reg. Z mortgage rule changes and proposals


    Aug 20, 2010
  • Fed clarifies, expands on delayed effective date for gift card disclosures


    Aug 13, 2010
  • “No Smoking” Signs Now Available

    The Wisconsin Department of Commerce has passed an emergency rule to tell us what the required “no smoking” signs in Wisconsin should look like.
     
    Since July 5, 2010, smoking has been prohibited in public places and workplaces statewide, including credit unions, which can no longer designate indoor smoking areas. The person in charge of a place where smoking is prohibited must make reasonable efforts to prohibit smoking by doing certain things, including posting “no smoking” signs “and providing other appropriate notification and information concerning the prohibition.” Previous law only required signs for areas that were designated for smoking.
     
    Wis. Admin. Code Comm. 62.0400 (5) now tells us what those signs must say: “No smoking signs shall include the international 'No Smoking' symbol, consisting of a pictorial burning cigarette enclosed in a red circle with a red bar across the cigarette.”
     
    To download a sample sign, click here.
    Jul 27, 2010
  • HUD posts RESPA Roundup


    Jul 22, 2010
  • Wisconsin Power of Attorney Law changing Sept. 1, 2010.

    Wisconsin has adopted a new law – effective Sept. 1, 2010 – to govern powers of attorney (POAs). Called the Uniform Power of Attorney for Finances and Property Act, it is similar to the laws in several other states and will be in Chapter 244 of the Wisconsin Statutes. The new law is online at: www.legis.state.wi.us/2009/data/acts/09Act319.pdf
     
    The new law makes some significant changes in the way POAs work in Wisconsin and the way credit unions will need to handle them. The League is working to update its ii Release No. 0168, which includes checklists of steps credit unions should take when first presented with a POA and whenever an agent asks to make a transaction.
     
    In the meantime, this article summarizes the September changes to Wisconsin’s POA laws.
    Jul 19, 2010
  • Fortunately, and unfortunately: HUD's new settlement costs booklet


    Jul 15, 2010
  • League adds “Accuracy & Integrity” section to model FACT Act policy

    The League is updating its “Model FACT Act Compliance Policy” to add a section on complying with federal rules about the accuracy and integrity of credit report information. The rules are mandated by the Fair and Accurate Credit Transactions (FACT) Act.
    Jul 7, 2010
  • Final Kwik-Cash form available

    The League's Consumer Kwik-Cash Loan Agreement form (#82033) is revised in its final form. A final copy of the form is available for your review and for training purposes. Click here to access the form, which shows a revision date of 6/10. A description of the changes to the form is provided below. Blue text is used to highlight descriptions that have been revised since the May 25, 2010 Compliance Courier.
    Jun 25, 2010
  • DOT offers vehicle titling & lien release pointers


    Jun 15, 2010
  • Fed adopts final round of CARD Act rules for credit cards


    Jun 15, 2010
  • July 5 "No Smoking" Law Will Affect Credit Unions; Fines Possible if "Person in Charge" Does Not Stop Smokers


    Jun 14, 2010
  • Fed clarifies Reg. E opt-in rules


    Jun 10, 2010
  • Timing requirements for statements


    Jun 9, 2010
  • Reg. E rules on prepaid cards effective Aug. 22

    Amendments to the Federal Reserve Board’s Reg E limit the fees and expiration dates for general-use prepaid cards (reloadable or not) that a credit union sells (or issues as replacements) on or after August 22, 2010. The rules also apply to gift cards and gift certificates.
     
    Credit unions that sell prepaid cards should work with their vendors on compliance with these new rules, including requirements for disclosures on the cards themselves. Take care not to issue older cards without the needed disclosures on or after Aug. 22. Your vendor may have information on destroying or returning old stock.
    Jun 4, 2010
  • Stiff penalties imposed for lax BSA programs

    Today FinCEN released the latest in an ongoing stream of civil monetary penalties against financial institutions with deficiencies in their BSA programs. This time the offender is a community bank; credit unions have been penalized in the past.  In this case the bank consented to a $1 million civil penalty. News accounts indicate the bank also forfeited $5 million to the federal government. The penalties demonstrate the importance authorities place on financial institution BSA and anti-money laundering programs in the fight against crime.

    NCUA regulations require all federally insured credit unions to maintain a written, risk-based, Bank Secrecy Act / Anti-Money Laundering (BSA/AML) compliance program. Before preparing a written program, each credit union must conduct a risk assessment to identify the risks it faces. Based on the risk assessment, the credit union’s board of directors must then adopt an appropriate BSA/AML program. The program must provide for four basic things: 

    1. A system of internal controls to assure ongoing compliance;
    2. Training for appropriate personnel;
    3. Designation of a BSA compliance officer; and
    4. Independent testing of BSA Compliance.

    Jun 3, 2010
  • Red Flags enforcement delayed until Dec. 31

    The Federal Trade Commission (FTC) is suspending enforcement of the identity theft “red flags” rules again – this time until Dec. 31, 2010. The FTC’s rules apply only to state-chartered credit unions. (Nearly all Wisconsin credit unions are state-chartered.) Federal credit unions were required to comply with the NCUA's red flag rules on Nov. 1, 2008.
    Jun 1, 2010
  • NCUA finalizes Mortgage Loan Originator registration rule

    The NCUA and federal banking regulators (the Agencies) have finalized the mortgage loan originator registration rule. A credit union employee who is a mortgage loan originator must complete an initial registration with the Registry within 180 days from the date that the NCUA provides public notice that the Registry is accepting registrations.
    Jun 1, 2010
  • Clarification: All counties to charge 30 flat fee for recording, mortgage satisfactions

    In a May 18 Compliance Courier, we alerted Wisconsin credit unions that under a change to Wisconsin law, starting June 25, Register of Deeds offices will charge a “flat fee” to record deeds, mortgages or other typical real estate instruments, no matter how many pages they have. Formerly, the fee was calculated per page.

    The new law requires a standard flat fee of $25 per document, but it also imposes a $5 recording fee per document to cover the costs of “redacting” (i.e., deleting) Social Security Numbers from documents that are posted online.


    May 20, 2010
  • June 1 Internet Gambling Rules Won't Be Delayed

    The UIGEA bars gambling businesses from knowingly accepting payments in connection with unlawful Internet gambling (including payments via credit or debit cards, automated clearinghouse, wires and checks). UIGEA is implemented by the Federal Reserve’s Regulation GG. It requires U.S. financial institutions (including credit unions) that participate in certain payment systems to have written policies and procedures that are reasonably designed to identify and block or otherwise prevent and prohibit “restricted transactions.” The regulation was supposed to go into effect Dec. 1, 2009, but the Federal Reserve and the U.S. Treasury Department extended the compliance date by six months.
     
    For details on UIGEA, including a model compliance policy, see The League’s ii Release No. 0177.
    May 4, 2010
  • July 1 Reg. Z changes coming for open-end lending


    May 4, 2010
  • More breaking employment law news


    May 3, 2010
  • Regulators Update Bank Secrecy Act/Anti-Money Laundering Examination Manual

    The Federal Financial Institutions Examination Council (FFIEC) has released a revised Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual, which was last updated in 2007.

    Apr 29, 2010
  • Group health insurance continuation subsidy extended again...


    Apr 20, 2010
  • Four new Employment Alerts


    Apr 20, 2010
  • Regulators post Online Form Builder for model privacy notices

    The NCUA and other federal regulators released an Online Form Builder today that financial institutions can download and use to develop and print customized versions of a model consumer privacy notice.
    Apr 15, 2010
  • Rock, Brown counties added as "High-Intensity Drug Trafficking Areas"


    Apr 9, 2010
  • Regulators answer questions on Reg. E opt-in rules

    The Federal Reserve’s “Consumer Compliance Outlook” (online here) includes a set of questions and answers about the Reg. E “opt-in” requirement for charging overdraft fees.
    Apr 6, 2010
  • Next wave of Reg. Z changes, effective July 1, deals w/ format & content of disclosures


    Apr 1, 2010
  • FTC guides address social media advertisements, bloggers, celebrity endorsements

    The Federal Trade Commission announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.
     
    The notice of the revisions incorporates several changes to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. "Word-of-mouth" marketing is also addressed. The Guides were last updated in 1980.
    Mar 25, 2010
  • Online privacy forms not available yet, but instructions are

    Credit unions have been asking about preparing privacy disclosures using the new model forms issued recently by the federal regulators (including the NCUA). 
    Mar 17, 2010
  • HUD's Mar. 18 webcast, RESPA: Implementation Consistency, available in its video library

    HUD to clarify RESPA in Thursday webcast
     
    Credit unions engaged in mortgage lending may want to view this upcoming webcast, either live on Thursday or through HUD's archive on a later date:
    Mar 17, 2010
  • Federal registration requirements for mortgage loan originators (S.A.F.E. Act), based on NCUA’s proposed rule


    Mar 12, 2010
  • Reg. E overdraft “Opt-In” notices needed by July 1

    The League has updated its ii Release No. 0120 to include details on the Reg. E “opt-in” requirement for charging an overdraft fee.

    Before a credit union can charge any fee for paying an overdraft caused by an ATM transaction or a one-time debit card overdraft, it must do four things: 

    • Give the consumer a notice that describes the credit union’s overdraft service;
    • Give the consumer a reasonable opportunity to consent (that is, to “opt-in”) to the service for ATM and one-time debit card transactions;
    • Obtain the consumer’s consent; and
    • Confirm the consumer’s consent.

    Mar 5, 2010
  • Wisconsin DOR program similar to child support data match


    Feb 10, 2010
  • League offers “Guide to Feb. 22 Reg. Z Changes”

    The League has put together a guide to help Wisconsin credit unions comply with the avalanche of new rules. You can access “The League’s Guide to the Feb. 22 Reg. Z Changes” online here.
    Feb 8, 2010
  • Dealing with CARD Act restriction on rate floors

    The League notified credit unions of a final rule amending Regulation Z (Truth in Lending) to implement the federal “Credit Card Accountability, Responsibility and Disclosure Act in a January 13, 2009 Compliance Courier. CUNA offers a valuable update, below. It deals with one of the important issues in the rule – rate floors on variable rate credit cards programs - based on Federal Reserve Board staff guidance.
    Jan 29, 2010
  • Private education loan rules, effective Feb. 14, apply if any part of loan is for postsecondary educational expenses

    The League is issuing a new ii Release No. B069 to explain federal laws that require credit unions to give special disclosures on “private education loans” or PELs – closed-end loans that are made, even in part, for postsecondary educational expenses. Special requirements, including a three-day right to cancel, also apply.
    Jan 22, 2010
  • NCUA issues new privacy disclosure forms; credit unions should switch by Jan. 1, 2011.

    The NCUA and other federal agencies have released new model privacy notice forms and rules that are designed to make it easier for consumers to understand how credit unions (and other institutions) collect and share personal information.  
    Jan 15, 2010
  • FRB of Atlanta reviews how to move from paper to electronics


    Jan 14, 2010
  • DOT to require electronic lien processing for motor vehicles July 1


    Jan 14, 2010
  • Fed Issues Final Rules for Open-End Credit, Credit Cards; Most Rules Effective Feb. 22, Others July 1


    Jan 13, 2010
  • Financial regulators issue interest rate risk advisory

    The Federal Financial Institutions Examination Council (FFIEC) released an 
    advisory today reminding institutions of supervisory expectations for sound 
    practices to manage interest rate risk (IRR). This advisory, adopted by each 
    of the financial regulators, reiterates the importance of effective corporate 
    governance, policies and procedures, risk measuring and monitoring 
    systems, stress testing, and internal controls related to the IRR exposures of 
    depository institutions. It also clarifies elements of existing guidance and 
    describes some IRR management techniques used by effective risk 
    managers.
    Jan 7, 2010
  • Check processing consolidation to be complete Feb. 26


    Jan 5, 2010
  • Reg. Z requires new mortgage transfer disclosure; eff. Jan. 10, 2010

    Another Regulation Z change relating to mortgage loans goes into effect on January 10, 2010. An interim rule requires a notice to be given to consumers when their open or closed-end mortgage loan secured by their primary residence has been sold or transferred. A purchaser or assignee that acquires a mortgage loan must provide the disclosures in writing within 30 days. The new disclosure requirement comes from the Helping Families Save Their Homes Act.
    Jan 4, 2010
  • 2010 HMDA exemption threshold unchanged at 39 million


    Dec 28, 2009
  • HUD Revises Settlement Cost Booklet


    Dec 17, 2009
  • Exemptions from execution increase on Dec. 16

    This week, Wisconsin will change its list of exemptions from execution (in other words, property that creditors cannot reach when trying to collect on a debt), as described in the Wisconsin Legislative Council memo below. These may affect credit unions in a few significant ways :
    Dec 14, 2009
  • DMV announces fee changes and electronic filing requirements


    Dec 8, 2009
  • Say “so long” to non-local checks


    Dec 4, 2009
  • Internet Gambling Compliance Deadline Now June 1, 2010

    The Unlawful Internet Gambling Enforcement Act (UIGEA) was supposed to take effect today, but the Federal Reserve and the U.S. Treasury Department have extended the compliance date by six months -- to June 1, 2010.
     
    In announcing the delay, the regulators explained that:

    Certain members of Congress acknowledged that the Act does not contain a clear definition of “unlawful Internet gambling” and expressed an intent to consider legislation that would allow problematic aspects of the Act to be addressed. Several of these members of Congress stated that there is considerable interest in Congress in clarifying the laws underlying Internet gambling, and that it would be prudent to defer the compliance date until Congress has had time to act.

    Dec 1, 2009
  • Bankruptcy Reaffirmation Forms Changed


    Dec 1, 2009
  • CUs may now order new laser-printed RESPA forms


    Nov 24, 2009
  • Reaffirmation cover sheet required Dec. 1

    Effective December 1, 2009, a cover sheet form must be filed with all reaffirmation agreements in bankruptcy court.
     
    The cover sheet, new Official Form 27, collects financial information for the court to determine whether a reaffirmation agreement creates a presumption of undue hardship and whether such presumption has been rebutted. The form also requires disclosure and explanation of any differences between the income and expenses on Schedules I and J versus the income and expenses reported in the reaffirmation agreement.
     
    For the Reaffirmation Agreement Cover Sheet – Official Form 27 - click here.
    Nov 23, 2009
  • Four "Breaking" compliance announcements.


    Nov 17, 2009
  • New Reg. E overdraft opt-in rules effective July 1, 2010


    Nov 12, 2009
  • Skip payment promotions raise compliance issues


    Nov 12, 2009
  • EEOC revises “Equal Employment Opportunity is the Law” poster

    The Equal Employment Opportunity Commission (EEOC) has revised its “Equal Employment Opportunity is the Law” poster. This new version reflects current federal employment discrimination law (including the Americans with Disabilities Act Amendments Act of 2008). The poster was revised to add information about the Genetic Information Nondiscrimination Act of 2008, which is effective November 21, 2009. The revised poster also includes updates from the Department of Labor.
    Nov 12, 2009
  • Lawmakers Change Rules on Balloon Loans and 21-Day Statements


    Nov 11, 2009
  • Red Flags enforcement delayed until June 1, 2010


    Nov 2, 2009
  • NCUA says NSF notices are “best practice”

    Credit unions sometimes ask whether they are required by law to send members notices of non-sufficient funds (“NSF notices”) when accounts are overdrawn. NSF notices are not legally required, but the NCUA recently issued a legal opinion letter that says sending them is a “best practice.” (As CUNA has put it, “best practice guidance really means ‘just do it.’”)
    Oct 7, 2009
  • NCUA recommends warning in credit card change-in-term notices

    As you know, since August 20, Reg. Z has required credit unions to give consumers 45 days' notice before increasing an APR or making a significant change to a credit card account. (The Wisconsin Consumer Act normally requires a 90-day change-in-terms notice on open-end consumer loans.)
     
    With a few exceptions, the change-in-terms notice must inform cardholders of their right to cancel the credit card account (i.e., “opt out”) before the increase or change goes into effect.
    Oct 7, 2009
  • FACT Act rules on accuracy of credit information effective July 1, 2010


    Sep 29, 2009
  • MANY CU LOANS SUBJECT TO HPML RULES ON OCT. 1


    Sep 29, 2009
  • League compliance resources help CUs prepare for RESPA changes


    Sep 17, 2009
  • FRB finalizes Reg. Z private student loan rules


    Sep 10, 2009
  • Wisconsin’s Domestic Partnership Law Goes Into Effect

    Since 08/09, same-sex couples in Wis. have been able to register as “domestic partners” by completing and signing an affidavit at a County Clerk’s office. Registered partners under Wis. law are provided with certain legal rights. But they are not married and do not have all the same rights as spouses. Most of the rights for partners have no significance for credit unions. For example, they now can have access to health care records, etc. However, some of these new rights may affect credit union operations. Click on the link for info relating to the effect of the law on:

    • affidavits for transfer; §851.09, Chap. 852 and §867.03
    • automatic revocation of power of attorney; §243.07 & §854.15
    • payable-on-death designation or the survivorship terms of a joint account; §854.15(3)
    • state family law and medical leave provisions; §103.10
    • payment of an employee’s unpaid wages upon death. §109.03.

    Sep 4, 2009
  • NCUA revamps overdraft protection rules, effective Jan. 1


    Sep 3, 2009
  • Remember new rules for closed-end home loans go into effect October 1


    Aug 26, 2009
  • FRB sets HOEPA threshold for 2010


    Aug 25, 2009
  • Reminder - higher-priced mortgage loan rules effective Oct. 1

    To help curb subprime mortgage lending abuses, regulators have amended federal Truth in Lending rules (Reg. Z) to impose special limits on those who make “higher-priced mortgage loans.” (These limits are in addition all of Reg. Z’s other applicable mortgage lending rules.)
    Aug 24, 2009
  • HUD posts FAQs on new RESPA rule


    Aug 20, 2009
  • CUNA Updates Efforts on Open-End Loan Statement Rules


    Aug 18, 2009
  • NCUA Regulatory Alert addresses impending disclosure deadlines


    Aug 18, 2009
  • CUNA: Frequently Asked Questions (FAQs) on Card Act Requirements

    CUNA Issues Additional Frequently Asked Questions (FAQs) on 21-Day Statement Rule.

    CUNA's Legal Department has prepared an FAQ regarding credit unions' compliance obligations under the CARD Act provisions, specifically the requirement to provide periodic statements for all open-end accounts at least 21 days before the payment is due.
     
    This document supplements CUNA's earlier, longer memo on this topic (CUNA website log-in required).
    Aug 17, 2009
  • DOES YOUR CREDIT UNION HAVE A SOUND COMPLIANCE PROGRAM?


    Jul 29, 2009
  • REG. Z Rules Shed Light on New Open-End Lending Laws


    Jul 28, 2009
  • Raise in Federal Minimum Wage Effective July 24, 2009


    Jul 22, 2009
  • No “New” TIL disclosure form needed for July 30 deadline


    Jul 14, 2009
  • New State Law Expands Coverage of Wisconsin Family and Medical Leave Act to Domestic Partners Effective June 30, 2009


    Jun 22, 2009
  • Regulators release "Red Flags" FAQs

    On Thursday, federal regulators issued a set of frequently asked questions (FAQs) about the “red flags” regulations on identity theft and discrepancies in change-of-address requests. The FAQs were issued jointly by the National Credit Union Administration (NCUA), the Federal Trade Commission (FTC) and other regulators.


    Jun 12, 2009
  • Cardholder rights bill signed into law


    Jun 5, 2009
  • Reg. D Transfer Limits Changing July 2

    The Federal Reserve Board has amended Regulation D (Reserve Requirements of Depository Institutions) to change the restrictions on how many transfers and withdrawals can be made from share and money market accounts.
     
    All transfers and withdrawals from a savings account that are subject to a monthly limit will now be subject to the same limit of six per month.
     
    Reg. D used to have a two-part limit on transfers from these accounts: 1) Credit unions could allow no more than six withdrawals or transfers to other credit union accounts of the member, or to a third party, by means of pre-authorized or automatic transfer or telephone orders or instructions. 2) No more than three of the six transfers could be made by check, draft, debit card, or similar order to a third party.
     
    The amendment eliminates the three-transfer "sublimit."  This should make Reg. D’s restrictions easier to understand (and to explain to members).
    Jun 3, 2009
  • Requirement for Early TIL Disclosures Changing July 30, 2009 for Mortgage Loans


    May 29, 2009
  • 250,000 Share Insurance protection extended to 2013


    May 28, 2009
  • INDIRECT SALES AND “CREDIT SALES” OF REPOS RAISE COMPLIANCE ISSUES

    Some credit unions say that they won't finance the sale of repossessed property because it has “bad karma.” Maybe they are referring to all the extra regulatory complications, though. Since a sale of repossession property is a “credit sale” (sale plus financing), it has extra compliance complications.
     
    A credit sale is a transaction in which the same party is both the seller and lender. Indirect lending involves a credit sale, since the dealer sells the vehicle and finances the sale, even though the dealer paper is then assigned to the credit union. Thus, if a member defaults on a loan obtained through indirect lending, the credit union may not setoff on the member’s credit union accounts to collect on the debt. It is also a credit sale if the credit union financed the sale of credit union property or repossessed or surrendered collateral.
    May 13, 2009
  • Pandemic Planning Resources

    The League reminded Wisconsin credit unions about pandemic preparedness earlier this week. We want to draw your attention to another important resource from federal financial regulators. They jointly issued pandemic planning guidance in 2008 that addresses the need for credit unions to establish plans to manage a pandemic event. The guidance says that your business continuity plan should include:
     
    • A preventative program to reduce the likelihood the operations will be significantly affected by a pandemic event;
    • A documented strategy which provides for scaling pandemic efforts;
    • A comprehensive framework of facilities, systems, or procedures to continue critical operations if a large number of staff are unavailable for prolonged periods;
    • A testing program to ensure the pandemic planning practices and capabilities are effective; and
    • An oversight program to ensure ongoing review and updates are made to the pandemic plan.

    Apr 30, 2009
  • Does your Disaster Recovery Plan address influenza risk?

    With the swine flu outbreak in the news, The League wants to remind credit unions that their disaster recovery plans should address influenza and other public health risks.
    Apr 27, 2009
  • "Making Home Affordable" guidelines include loan modification standards

    On March 4, 2009, the Treasury Department released the “guidelines” and “updated detailed program description” for the Obama Administration’s “Making Home Affordable” program. They include guidelines for what the Administration expects to become industry standards for mortgage loan modifications.
    Mar 10, 2009
  • NCUA releases examiner guidance on participation loans

    The NCUA has published Letter to Credit Union No. 08-CU-26, giving guidance on evaluating loan participation programs at federally insured credit unions.
    Feb 25, 2009
  • SCAM ALERT: Small Businesses Being Scammed

    The U.S. Small Business Administration (SBA) is warning small businesses not to respond to letters falsely claiming to have been sent by the SBA asking for financial account information in order to qualify them for federal tax rebates.
     
    Credit union may want to pass this warning along to their business members.
     
    The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that they may be eligible for a tax rebate under the Economic Stimulus Act, and that SBA is assessing their eligibility for such a rebate. The letter asks the small business to provide the name of its financial institution and account number.
     
    These letters have not been sent by or authorized by the SBA, and all small businesses are strongly advised not to respond to them.
     
    The scheme is similar to email scams often referred to as “phishing” that seek personal data and financial account information that enables another party to access and individual’s bank accounts or to engage in identity theft.
     
    The SBA Office of Inspector General (OIG) asks that anyone who receives such a letter report it to the OIG Fraud Line at (800) 767-0385, or by email to OIGHotline@sba.gov.

    Feb 19, 2009
  • CUNA summarizes Reg. Z changes for open-end credit


    Feb 9, 2009
  • New FMLA Rules in Effect for Credit Unions with 50+ Employees


    Jan 19, 2009
  • RESPA Servicing Disclosure Statement simplified eff. Jan. 16


    Jan 14, 2009
  • Regulation B and Marital Status Discrimination: Are You in Compliance?


    Dec 31, 2008
  • Federal Financial Regulators Issue Revised Identity Theft Brochure


    Dec 22, 2008
  • Reg. Z Changes Finalized for Open-End Lending


    Dec 22, 2008
  • Want to make sure your staff is using the latest compliance information from The League?


    Dec 12, 2008
  • Wisconsin Case Clarifies Credit Reporting on Chap. 13 Plans

    The U.S. Bankruptcy Court for Wisconsin’s Eastern District has clarified how credit unions (and other lenders) should report Chapter 13 payments to Consumer Reporting Agencies (CRAs).
    Dec 8, 2008
  • The League has no ties to firm's Investment Advisory


    Nov 24, 2008
  • New RESPA rule is effective Jan 1, 2010


    Nov 14, 2008
  • Share Insurance Coverage Increased


    Oct 7, 2008
  • NCUA initiates share insurance call center, tool kit

    The National Credit Union Administration reports that it has opened a call center and posted an electronic tool kit to help members and credit unions better understand the insurance protection NCUA provides for member accounts.

    Sep 25, 2008
  • IOLTA accounts require overdraft notices to OLR

    Although most credit unions do not offer IOLTA attorney trust accounts, those that do are obligated to send overdraft notices to the Office of Lawyer Regulation.
     
    This applies even if the credit union pays the draft. The Office of Lawyer Regulation has become aware of credit unions that do not send the required notification to OLR. If you offer IOLTA accounts, please check your procedures and systems to confirm that proper notices have and will be sent as required.

    Overdraft notices must be sent to:
    Office of Lawyer  Regulation – Trust Account Program
    110 East Main Street, Suite 315
    Madison, WI 53703-3383

    Aug 15, 2008
  • Take Care Reporting Debts Discharged in Bankruptcy

    Lawsuits are pending around the country against financial institutions, including credit unions, claiming they improperly reported to consumer reporting agencies (CRAs) debts that members had discharged in bankruptcy.
    Jul 16, 2008
  • CUNA Compliance Resources Available


    Jul 15, 2008
  • FRB adopts Reg. Z mortgage provisions eff. Oct. 1, 2009


    Jul 14, 2008
  • NCUA Finalizes Illustrations of Hybrid ARMs


    Jun 17, 2008
  • See The League's On-Line Store for Available WCUL Forms

    Log into the On-Line Store to view all WCUL forms.
     
    This tool makes it easy to compare revision dates to be sure you have the most current form.
    Jun 12, 2008
  • FinCEN Warns of Money Laundering Methods in Real Estate Lending


    May 12, 2008
  • Sample Truth in Savings Disclosure posted on The League’s website

    The League has posted a sample version of a Truth in Savings disclosure brochure on its compliance website. The sample illustrates how a credit union can combine several account disclosures on one sheet, rather than a separate sheet for each type of account. 
    Apr 29, 2008
  • COMMENT CALL: HUD seeks input on RESPA rewrite


    Apr 16, 2008
  • Reg. CC Quiz: Applying Funds Availability Rules


    Apr 11, 2008
  • Three human resources matters of immediate interest to Wisconsin credit unions:


    Feb 9, 2008
  • New rules for electronic disclosures take effect Oct. 1


    Feb 5, 2008
  • IRS revises Form 990


    Jan 18, 2008
  • FRB sets asset threshold for HMDA


    Dec 28, 2007
  • Employment eligibility verification Form I-9 revised eff. Nov. 7


    Nov 13, 2007
  • Federal regulators issue final rules on identity theft "red flags"


    Nov 2, 2007
  • Agencies issue final rules on affiliate marketing


    Nov 2, 2007
  • FinCEN Suggestions for Addressing Common Errors Noted in Suspicious Activity Reporting

    FinCEN has issued a 5-page document, Suggestions for Addressing Common Errors Noted in Suspicious Activity Reporting (Oct. 10, 2007). The document identifies ten of the most common errors in SAR filings and how to avoid them. These errors hamper the effectiveness of SAR filing in alerting law enforcement to illegal activities. Another list of seven items is included, pointing out suggestions for overall improvement of the credit union's suspicious activity reporting system.
    Oct 11, 2007
  • Rule Sets Limits on Lending to Military Service Members

    The Department of Defense has issued a final rule, effective Oct. 1, 2007, to implement federal limits on lending to those in military service and their dependents. The rule is designated to protect those in the military from predatory lenders, but it may apply to certain types of credit union loans, as well.
    Sep 7, 2007
  • Regulators Address Loss Mitigation for Mortgages Servicers

    The NCUA and other federal financial regulatory agencies issued a statement encouraging federally regulated financial institutions and state-supervised entities that service securitized residential mortgages to review to determine the full extent of their authority under pooling and servicing agreements to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership.
    Sep 4, 2007
  • NCUA Adopts Statement on Enforcement of BSA

    The League can help your credit union meet each of the NCUA requirements for BSA compliance. See the chart at the end of this article for a reminder of League resources and products that are available to help you meet the BSA requirements.
    Jul 20, 2007
  • The League compiles recent mortgage lending guidance

    NCUA and federal banking regulators have been busy in the last few years churning out guidance on various aspects of real estate lending, much of it applicable to state-chartered institutions as well as federal. This has been in response to changes in the rate environment, home values, and the array of innovative products offered by lenders.

    All this guidance can be confusing, but it is critical to know what regulators expect. This article assembles, describes and links to the different regulatory pronouncements, for your review. We suggest taking the time to determine which may apply to your current real estate lending operations and require follow through.
    Jul 13, 2007
  • Are bankers at it again?


    Apr 10, 2007
  • Does your Disaster Recovery Plan address influenza risk?..

    In 2006, NCUA issued Letter to Credit Unions 06-CU-06 on Influenza Pandemic Preparedness.

    The letter advises credit unions and their service providers to consider the threat of a pandemic influenza outbreak and similar threats in their business continuity and disaster recovery plans. The NCUA says that a pandemic event is a potential threat to any credit union regardless of size and location.
    Feb 15, 2007
  • Will your systems “Spring Ahead” on March 11?


    Feb 13, 2007
  • Appellate Court Rejects DOR on Computer Software


    Feb 6, 2007
  • Double Check Your ATM Notices


    Jan 25, 2007
  • Bankruptcy Reaffirmation Disclosure Form Updated

    The Bankruptcy courts in Wisconsin (and elsewhere) now offer revised disclosure forms (Form 240) to be used with all reaffirmations. Credit unions should no longer routinely use The League’s Reaffirmation Disclosure form, but instead use the “official” court form.



    Jan 19, 2007
  • No Relief Yet for Telephone Tax Refund Procedures


    Jan 12, 2007
  • Employment Alert: New Federal Rules Govern Credit Unions' Electronic Files

    Amendments to the Federal Rules of Civil Procedure, effective December 1, 2006, require that information and records stored electronically, including email, PDA's, printers, home computers, and even cell phones, is to be treated the same as paper information and records for litigation discovery purposes.
    Dec 1, 2006
  • Affidavit of forgery is an important tool

    WHEN A MEMBER claims to have been the victim of fraud – say a forged signature or unauthorized use of a credit/debit card – your credit union’s initial response is important. 
    Jul 1, 2004