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. CFPB Final Rule on Credit Card Late Fees: On March 5, the Consumer Financial Protection Bureau (CFPB) finalized its rule against excessive credit card late fees lowering the typical fee from $32 to $8 while eliminating the 2009 CARD Act immunity provision for automatic inflation adjustments for issuers that have 1 million or more open accounts.
Chair Harper on Overreliance of Overdraft and NSF Fees: On March 4, NCUA Chair Todd Harper wrote an op-ed in the Credit Union Times comparing credit union overreliance on NSF fees with the demise of Blockbuster Video and the eventual rise of Netflix. FHFA Announces Implementation Schedule for Enterprise Credit Score: On February 29, the Federal Housing Finance Agency (FHFA) announced updates to the implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie Mac (the Enterprises). CFPB Issues Guidance on Rigged Comparison-Shopping for Credit Cards: On February 29, the Consumer Financial Protection Bureau (CFPB) issued a circular to law enforcement agencies and regulators explaining how companies operating comparison-shopping tools can break the law when they steer consumers to certain products or lenders because of kickbacks. FFIEC Issues Statement on Examination Principles: On February 12, the Federal Financial Institutions Examination Council (FFIEC) issued a statement on examination principles related to valuation and bias in residential lending.
US Supreme Court Rules on Fair Credit Reporting Act (FCRA): On February 9, the Court issued its unanimous slip ruling finding that the FCRA waives sovereign immunity and the federal government can be liable for incorrect reporting that damages consumer credit scores. State Junk Fees Litigation: On February 8, the New York Attorney General announced an historic judgment of $77M against three merchant cash advance companies accused of usury and fraud in illegal high-interest short-term loans with undisclosed fees on small businesses. Office of Cannabis Management (OCM) Update: On January 30, the OCM held a webinar to update the progress of its implementation of the 2023 recreational marijuana law with the goal to launch commercial licensing in 2025.
CFPB Issues Two Advisory Opinions: On January 11, the agency issued two advisories clarifying the Fair Credit Reporting Act (FCRA) requirements on background check reports and credit file disclosure implementing their January 2023 report for improving and challenging credit reporting companies. Permitted Purposes for Consumer Reports Reminder: As the CFPB moves towards mandating open banking, it is important to remember the Fair Credit Reporting Act (FCRA) regulations for permitted purposes and use of consumer (credit) reports. Cybersecurity Trends: Eder Ribiero, cybersecurity manager for Transunion sees the following things to watch out for in 2024. |
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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