Third Party Risk Management Practices Guide: On May 3, the Federal bank regulatory agencies Federal Reserve Board of Governors, Office of the Comptroller of Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) released a guide to support community banks in managing risks presented by third-party relationships.
What Happens with a PII Security Breach: Whether data security incidents are internally caused at your credit union or by a third-party vendor having access to personally identifiable information (PII), preparation by having policies with procedures implementing applicable federal regulations and guidance before such an incident occurs are critical best practices. CFPB Action Against Student Loan Servicing Failures: On May 6, the Consumer Financial Protection Bureau (CFPB) took corrective action against the National Collegiate Student Loan Trusts (the Trusts) and Pennsylvania Higher Education Assistance Agency (PHEAA) for failures to respond to consumer requests seeking relief from student loan payments. NCUA Proposed Rule Record Retention: On April 24, the National Credit Union Administration (NCUA) published in the Federal Register an advanced notice of proposed rulemaking (ANPRM) seeking comments on its process to update Part 749 of the Federal Credit Union Act (FCUA) requiring all federally insured credit unions to maintain a records preservation program to identify, store, and reconstruct vital records in the event records are lost or destroyed.
NCUA 2024 CDLRF Grant Cycle: The NCUA will be hosting a webinar on May 2 at 2:00P.M. (EST) for low-income credit unions that want to apply for the 2024 Community Development Revolving Loan Fund. Credit unions are encouraged to review the Notice of Funding Opportunity which outlines the grant initiatives and grant application guidelines. Legislative updates: Congress was out last week for the Passover holiday and the House Financial Services committee will hold a hearing on merger policies of the federal banking agencies today and the Senate Banking committee will hold a hearing on higher prices on Thursday.
Marijuana reclassification: Yesterday, the U.S. Drug Enforcement Administration announced that it will move to reclassify marijuana as a less dangerous drug, a step clears the last significant regulatory hurdle before the agency’s biggest policy change in more than 50 years can take effect. Minnesota Bankers Association lawsuit: Last month, a Minnesota federal district court dismissed the Minnesota Bankers Association’s and Lake Central Bank’s lawsuit challenging the FDIC’s supervisory guidance on NSF fees. America’s Credit Unions interchange webinar, Tomorrow May 2: America’s Credit Unions announced a webinar on Thursday May 2 at 1:30 PM CST to go over efforts among federal regulators that could significantly alter credit unions’ operating landscape. NCUA Opens CDLRF Grant Round May 1: The National Credit Union Administration (NCUA) announced that credit unions can apply for the 2024 Community Development Revolving Loan Fund grants between May 1 and July 1.
CFPB HMDA Data Available: On April 5, the Bureau issued a press release announcing HMDA data supported report showing a trend that consumers are paying upfront fees seeking lower interest rates on mortgages. FTC Office of Technology Issues Reminder on Poor Company Security Practices: On April 17, the Federal Trade Commission (FTC) Office of Technology issued a reminder on security practices on its long-time effort to improve the technology security practices of companies from all industries. CFPB Spring 2024 Supervisory Highlights: On April 15, the Consumer Finance Protection Bureau (CFPB) released its Spring 2024 Supervisory Highlights in connection with findings from examinations for credit reporting and furnishing completed from April 1 – December 31, 2023.
FinCEN Notice On Counterfeit Passports for Fraud at Financial Institutions: On April 15, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) released a notice to financial institutions on fraud schemes related to the use of U.S. passports. FHFA Advances Implementation of FHLBank Report Recommendations: On April 3, the Fair Housing Finance Agency (FHFA) released an update on implementation of recommendations for the Federal Home Loan Bank (FHLBank) report published in November. On April 1, the Minnesota Credit Union Network, America’s Credit Unions, and numerous financial services trade associations filed their objections to the Consumer Financial Protection Bureau’s (CFPB) proposed rule to require more transparency and prevent NSF fees on ‘courtesy’ overdraft credit protection services by ‘very large institutions’.
Visa and Mastercard Interchange Settlement Ramifications: On March 26, Visa and Mastercard reached a settlement agreement in principle resolving a lawsuit which was filed in 2005.
FinCEN Seeks Comments on Customer Identification Program Requirement: On March 28, the Financial Crimes Enforcement Network (FinCEN) issued a request for information (RFI) related to existing requirements for banks under the Customer Identification Program (CIP) Rule to collect a taxpayer identification number (TIN) from a customer prior to opening an account. FinCEN Administrative Ruling on Customer Identification Programs for IRAs: On March 15, FinCEN issued an administrative ruling on Customer Identification Programs (CIP) and Customer Due Diligence (CDD) requirements for designated beneficiaries of individual retirement accounts (IRA). NCUA 2023 DEI Annual Report Released: On March 28, the NCUA released its Office of Minority and Women Inclusion (OMWI) Annual Report to Congress that revealed hard data behind the agency’s diversity, equity, inclusion and accessibility (DEIA) initiatives and programs through September 2023. FTC Prohibiting Business and Government Impersonation Rule Effective: On April 1, the Federal Trade Commission announced that the effective date of its new rule on government and business impersonation went into effect. Financial Action Task Force Upgrades U.S to Largely Compliant with FATF Recommendation 24: Today, the Financial Action Task Force (FATF)—the global standard-setting body for anti-money laundering, countering the financing of terrorism, and countering proliferation financing (AML/CFT/CPF)—announced that the United States has been upgraded to “largely compliant” with FATF Recommendation 24, which relates to beneficial ownership transparency for legal persons.
NCUA 2023 Annual Report and 2024 DEI Summit in Minneapolis: On March 25, the National Credit Union Administration (NCUA) released its 2023 Annual Report highlighting the agency’s activities, policy initiatives, and accomplishments for the year. NCUA Updates Simplified CECL Tool: On the same date, the NCUA also released its March 2024 update of its Simplified CECL Tool. Navy Federal and Credit Card Late Fees Rule Lawsuits: On March 23, Navy Federal Credit Union (Navy) has filed a motion to dismiss the class action lawsuit based upon racial discrimination against the Plaintiffs for failing to give notice as a member of their field-of-membership (FOM) intent to file a lawsuit against Navy. Comment On CFPB Proposed Rule for Immediately Rejected Transactions: On March 25, the Minnesota Credit Union Network and America’s Credit Unions separately filed comment letters objecting to the Bureau’s proposed ‘preventative’ rule against charging NSF fees on instantly rejected transactions. CFPB Director Updates Status of Financial Data Exchange (Open Banking - 1033 Rule): On March 14, Consumer Finance Protection Bureau (CFPB) director Rohit Chopra made remarks at the Financial Exchange Global Summit addressing the status the proposed rule to shift to open banking.
FTC Amends Telemarketing Sales Rule (TSR): On March 7, the Federal Trade Commission (FTC) announced substantial revisions to its telemarketing sales final rule extending telemarketing fraud protections to businesses and updating the rule’s recordkeeping requirements in light of developments in technology and the marketplace. FCC Final Rule On Robocalls and Robotexts: The Federal Communications Commission published its final rule to ‘clarify and strengthen’ a consumer’s right to revoke consent to receive robocalls and robotexts under the Telephone Consumer Protection Act (TCPA). CFPB Late Fee Final Rule Clarified: The final rule was published March 15 in the federal register and will currently be effective May 14 limiting the safe harbor amount for card late fees for large issuers (over 1M accounts) to $8 regardless of the number of late payments which will not be adjusted annually. |
The PulseThe Pulse is MnCUN's newsletter that keeps credit union professionals and board members updated on current news and information. Archives
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