One of the benefits of your credit union's League membership is access to InfoSight--a valuable online compliance resource. This newsletter contains some timely highlights, and access to InfoSight is a benefit of League affiliation, so it is password-protected. If you have a specific compliance issue or concern, contact our Consulting Department at (800) 285-5300. Replies to this email will be directed to SVP, League Services & Regulatory Analysis Joe Guilfoy .
InfoSight Highlight
InfoSight – Field of Membership
Field of membership (FOM) is something that sets credit unions apart from other financial institutions and defines the person, including organizations and other legal entities, a credit union is permitted to accept for membership. Generally, credit unions can only offer services to persons within the FOM who have actually become members of the credit union. The credit union’s charter and bylaws will identify who is eligible for membership within your credit union.

Be sure you are kept up-to-date with the information in the Field of Membership channel today!
Compliance Videos
Compliance Outlook for Q1 and Q2 2018
In this video, Glory LeDu provides the overview of what’s ahead in the compliance world for 2018 . This covers annual threshold updates, HMDA changes, Payday Alternative Loans, Military Lending Act, ACH Same-day ACH processing and more!
 
Just a reminder that Compliance videos since 2016 can be found on YouTube at the Compliance Connection channel , where they are generally updated quarterly.
Compliance News
FinCEN Issues Updated FAQ for Customer Due Diligence Requirements
On April 3, 2018, FinCEN issued Frequently Asked Questions to assist covered financial institutions in understanding the scope of the Customer Due Diligence Requirements for Financial Institutions, (the CDD Rule) published on May 11, 2016.  Click here to access the updated FAQs.

Source: FinCEN
NCUA Posts New Share Insurance Fund Distribution Directions Online
Federally insured credit unions now can find online information about calculating and recording the planned Share Insurance Fund equity distribution from the National Credit Union Administration.

The NCUA recently posted new frequently asked questions about the distribution that include a preliminary pro rata calculation figure and instructions for recording the distribution, available online here.

The pro rata calculation figure is subject to change, and the NCUA assumes no responsibility for an eligible credit union’s accounting estimate of its Share Insurance Fund equity distribution.

Following the closure of the Temporary Corporate Credit Union Stabilization Fund and the transfer of assets to the Share Insurance Fund on Oct. 1, 2017, the NCUA Board, at its February 2018 open meeting, authorized a statutorily required Share Insurance Fund equity distribution of $736 million to eligible credit unions, to be paid in the third quarter of 2018.
CUNA provides first quarter update for the MLA Fee Comparison spreadsheet
In September of 2017 CUNA announced that it had worked with a third party to develop an interactive MLA Fee Comparison spreadsheet for determining whether certain credit card fees they charge are considered Reasonable and Bona Fide.

At the request of a number of credit unions, CUNA has agreed to update the spreadsheet on a quarterly basis during 2018.

The recently-updated first quarter 2018 fee comparison spreadsheet has been downloaded in CUNA's Compliance Community under Compliance Resources Tab and is also located under the CUNA Resources tab in the MLA topic of CUNA's e-Guide. 

In each location you will find the updated spreadsheet from the end of March 2018 as well as the initial spreadsheet from September 2017, in case you need to refer to historical data.

CUNA estimates that use of the spreadsheet will significantly reduce the time required to determine whether a credit union's fees are "Reasonable" and Bona Fide when compared to performing the same steps manually.


Source: CUNA Compliance Community
Advocacy Highlight
CFPB issues 10th RFI in series
The CFPB has  announced the tenth in its Call for Evidence series of Requests for Information to ensure the Bureau is fulfilling its proper and appropriate functions.  The latest RFI  seeks comments and information from interested parties to assist in assessing the overall effectiveness and accessibility of its guidance materials and activities, including implementation support. The Bureau is also considering whether it would be appropriate to make changes to the formats, processes, and delivery methods for providing this guidance, and whether it would be appropriate to make changes to the disclaimers used on certain forms of guidance. Publication of the RFI is scheduled for Monday, April 2. A 91-day comment period will end Monday, July 2, 2018.
 
Source: CUNA Advocacy
CUNA and Trades Disagree with Part of Court’s FOM Ruling
The U.S. District Court for the District of Columbia upheld two challenged portions of the National Credit Union Administration's field of membership (FOM) rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association (ABA). CUNA, the National Association of Federally-Insured Credit Unions (NAFCU), and CUNA Mutual Group, in a joint statement, disagreed with the court's decision and reiterated their intent to continue to work in support of the agency's authority to issue this rule. 

"Our organizations are pleased the court upheld components of the NCUA's field-of-membership rule; however, we strongly disagree with the court's decision that aspects of the rule exceed the agency's legal authority," said NAFCU President/CEO Dan Berger, CUNA President/CEO Jim Nussle and CUNA Mutual Group President/CEO Robert Trunzo. "The field-of-membership rule is not only entirely consistent with the Federal Credit Union Act, but also credit unions must have the ability to grow and serve more Americans. As the parties consider their options going forward, we will continue to support the agency on this critical issue." 

The provisions declared to exceed the NCUA's statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to 1 million people the population limit for rural districts. [ Read more here ]
Keeping up with CUNA Advocacy
To stay abreast of the issues on which CUNA has provided input to lawmakers and regulators, here is a list of those topics .
Weekly Regulatory Advocacy Report
The Weekly Advocacy Report provides links to information about a number of recent League, CUNA and NCUA regulatory and advocacy activities. 
   
Upcoming Education Sessions
The League has several education sessions coming up. Several focus on compliance issues. They are listed in calendar format on the League website.
   
League Consulting Department Staff
(800) 285-5300
Compliance Calendar
April
  • April 19, 2018: Amendments to the 2013 Mortgage Servicing Rules
  • April 29, 2018: 5300 Call Report Due to NCUA
May
  • May 11, 2018: Customer Due Diligence – CDD (FinCEN) – Effective date
  • May 28, 2018: Memorial Day - Federal Holiday
July
  • July 1, 2018: Regulation CC Amendments – Availability of Funds and Collection of Checks
  • July 4, 2018: Independence Day - Federal Holiday
  • July 29, 2018: 5300 Call Report Due to NCUA
September
  • September 3, 2018: Labor Day - Federal Holiday
October
  • October 8, 2018: Columbus Day - Federal Holiday
November
  • November 12, 2018: Veterans Day (observed) - Federal Holiday
There's more available from InfoSight
InfoSight content is available from the League's website . Visit anytime to get sample policies, links to federal regulations and summaries of issues that are hot-topics at your credit union. 
 
Access to InfoSight is a benefit of League affiliation, so it is password-protected. If you don't have a password or if you have forgotten yours, click on the tan "Log In" button in upper right corner of the site; a box will open. Click on the blue wording to get your password.