August 18, 2017
In This Issue
Lagniappe Listserv
Email the Lagniappe Listserv at  louisiana-cu-compliance@googlegroups.com  t o get input on compliance related issues, share best practices, or share policies, procedures and the latest in fraud awareness.   
Quick Links
ComplySight: FREE Recorded Webinars
RECORDED WEBINARS



Upcoming Educational Events
August 22nd

August 22-23


For a complete listing of educational opportunities available from LCUL and to register, visit the League website and click on "Education"
Compliance Toolkit
The BSA Officer's Toolkit contains tools to help manage your institution's BSA/AML program. It is designed to help you revamp and revitalize your BSA program before the examiners arrive.

Toolkit is provided by GetTechnical Inc. 

LCUL partners with LA CUSO to assist CUs with audit need   

The Louisiana Credit Union League is excited to announce a partnership with La CUSO to help meet your audit needs. LA CUSO is an internal audit service that provides credit unions with a wide range of customized, ongoing and periodic internal audits. Their team of highly trained and experienced Certified Internal Auditors and Certified Compliance Officers work exclusively with Louisiana credit unions to meet their audit needs. Some of the services include:
 
Supervisory committee audits are vital for checking your internal controls and ensuring you meet regulatory requirements. Their supervisory committee audit includes a review of:
  • General ledger accounts
  • Cash accounts and investments
  • Expenses, prepaids, and accruals
  • Sample of loans
  • Sample of member verification
  • Policies and procedures
Compliance auditing can help you stay abreast of the numerous regulations in place for credit unions (BSA, deposit, lending). We can provide you with full compliance audits, compliance consultations, and in-house training for your personnel. During a compliance audit, they will:
  • Evaluate your compliance program
  • Provide advice to correct deficiencies and violations
  • Assist in the development of policies and procedures
  • Advise you on ways to enhance your compliance program
  • Provide a final report of all findings to Management and Board of Directors
"The League often receives requests for audit services at a fair price. We are excited to work with LA CUSO's to fill this important need," commented Cami Crouchet, LCUL Chief Strategic Officer.
 
Click here for more information on the LCUL/LA CUSO partnership.
InfoSight Highlight: Interest Rate and FCUs 

The Federal Credit Union Act (the Act) permits Federal Credit Unions to make loans and extend lines of credit to members but prohibits FCUs from charging an annual percentage rate (APR), inclusive of all finance charges, above 15%. The Act, however, permits the NCUA Board (NCUA), after considering certain statutory criteria, to establish a higher interest rate ceiling in 18-month cycles. (The Federal Credit Union Act: Section 1757(5)(A)(vi)).

Current Increases
Since 1987, when the NCUA Board decreased the temporary ceiling from 21%, it has consistently acted to maintain a temporary ceiling of 18%. The current NCUA Board approved 18% ceiling remains in effect through March 10, 2017. (Per NCUA Rules and Regulations Part 701.21 (c)(7)(ii)).

Finance Charges
Finance charges that must be included in the determination of the interest rate are consistent with those defined in Regulation Z, Truth in Lending.

Penalty for Exceeding the Allowable Interest Rate
An FCU that knowingly charges or receives an interest rate that exceeds that allowed by law is subject to forfeiture of the entire amount on interest charged or received. Such action must be taken by the borrower or his legal representative within two years of the time the usurious collection was made.
TRID amendments published August 11   

On August 11 CFPB published the TRID rule amendments announced on July 7. The amendments will be effective October 10, 2017, with compliance required by October 1, 2018, as to loans for which applications are received on or after October 1, 2018 (except for two provisions that will apply to all loans regardless of when applied for). The Bureau also published its  proposed rule  relating to when a creditor may compare charges paid by or imposed on the consumer to amounts disclosed on a Closing Disclosure or corrected Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith.

Comments on the proposal will be accepted through October 10, 2017.

Source: CFPB
DoD reaffirms October 3rd MLA effective date for credit cards    

Despite CUNA's ongoing advocacy efforts with the Department of Defense (DOD) to extend the Military Lending Act's (MLA) effective date for credit card accounts, DOD recently reaffirmed the October 3, 2017 effective date.  

In a letter dated February 16, 2017, CUNA asked DOD to issue specific guidance relative to the MLA's credit card provisions no later than four months before the effective date. Alternatively, CUNA asked that the effective date be delayed to allow an implementation period of at least four months from the time guidance is issued. With less than 60 days remaining before the MLA's credit card provisions take effect, DOD has yet to issue any relative guidance. 

Although Section 232.13 of the MLA expressly provides that DOD may extend the credit card effective date to October 3, 2018, in a letter dated July 10th from the Office of the Under Secretary of Defense, DOD denied a request for such extension. As justification for the denial, DOD stated that it lacks information relative to:
  • What implementation steps have been taken by the industry to date?
  • What implementation efforts remain to be accomplished?
  • Justification as to why credit unions require a full 12-month delay of the effective date.
CUNA will continue to advocate on behalf of America's credit unions for specific changes to the MLA, necessary interpretive guidance and an extension of the effective date for credit card provisions. If you have feedback specific to your cooperative regarding the adverse effects the MLA has had to date on your product offerings to active duty Servicemembers and their dependents, or would like to share what continued struggles you face in implementing the MLA's credit card provisions, please contact Leah Dempsey, CUNA's Senior Director of Advocacy and Counsel at LDempsey@cuna.coop.

Source: CUNA CompBlog
Compliance Calendar

September, 2017

October, 2017

January, 2018

March, 2018

March 16th: Same-day ACH (NACHA) - Phase 3 of the implementation period for the rule

 

April, 2018

April 1st: Prepaid Accounts under the Electronic Fund Transfer Act/Regulation E and the Truth In Lending Act/Regulation Z (Date Extended)

 

May, 2018

May 11th: Customer Due Diligence - CDD (FinCEN) - Effective date