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 – Investments
If you’re wondering where to look for information on broker-dealers, safekeeping, permissible/prohibited investments, derivatives, investment policies and powers, charitable donation accounts or monitoring and reporting requirements and more – look no further than the Investment channel in InfoSight!

Be sure you are kept up-to-date with the information in the Investment channel today!
Compliance Videos
Compliance Outlook for Q1 and Q2 2018
In this vide o, Glory LeDu provides the overview of what’s ahead in the compliance world for 2018 . This covers annual threshold u pdates, 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
NCUA to Host Bank Secrecy Act Webinar
Credit unions with questions about complying with customer due diligence requirements in the Bank Secrecy Act can get valuable information on a National Credit Union Administration webinar scheduled for April 25.

The Financial Crimes Enforcement Network in 2016 issued a  final rule updating the Bank Secrecy Act’s requirements for effective BSA and anti-money-laundering programs . The webinar, “BSA Compliance – Customer Due Diligence,” will address these requirements for credit unions.

This 60-minute webinar is scheduled to begin at 2 p.m. Eastern. Online registration is available here.
The webinar panel—Sandra Sojka, a regulatory policy officer with FinCEN’s Policy Division; Janet Carruthers, a fraud and risk analysis specialist with NCUA’s Office of Examination and Insurance; and Andre Lucas, the director of compliance, Maryland/District of Columbia Credit Union Association—will review the basic requirements of the 2016 rule, including:
  • Reducing compliance and reputation risk with ongoing member due diligence;
  • Enhancing risk-based procedures by including timely and accurate SAR reporting; and
  • Improving the overall BSA/AML program with specific procedures.

You can submit questions in advance at  WebinarQuestions@ncua.gov . The email’s subject line should read, “BSA Compliance – Customer Due Diligence.” This webinar will be closed captioned and then archived online  approximately three weeks following the live event.

The Bank Secrecy Act webinar is the first of five webinars NCUA’s  Office of Credit Union Resources and Expansion  will host in the coming months. Topics include: the agency’s streamlined community development financial institutions certification program, 2018 grant initiatives, and Share Insurance calculations. Details about each webinar will be available in the near future.
FFIEC Issues Joint Statement on Cyber Insurance and its Potential Role in Risk Management Programs
The Federal Financial Institutions Examination Council (FFIEC) members today issued a joint statement to describe matters that financial institutions should consider if they are determining whether to use cyber insurance as a component of their risk management programs.

The FFIEC members do not require financial institutions to maintain cyber insurance. The evolving cyber insurance market and the shifting cyber threat landscape may, however, prompt financial institutions to consider whether cyber insurance would be an effective part of their overall risk management programs. 
The joint statement notes that cyber attacks are increasing in volume and sophistication and that traditional general liability insurance policies may not provide effective coverage for all potential exposures caused by cyber events. Cyber insurance could offset financial losses from a variety of exposures—including data breaches resulting in the loss of confidential information—that may not be covered by more traditional insurance policies. Financial institution management should assess the scope of coverage of current insurance and consider how cyber insurance may fit into the institution’s overall risk management framework.

As with any insurance coverage, cyber insurance does not diminish the importance of a sound control environment. Rather, cyber insurance may be a component of a broader risk management strategy that includes identifying, measuring, mitigating, and monitoring cyber risk exposure.

Financial institutions may find additional information on risk management and cybersecurity risk management on the FFIEC’s website at   http://www.ffiec.gov .


Source: NCUA
HMDA Preapprovals FAQ
Q: Do we have to report all preapproval requests now? What about prequalification requests?

A: The collection, recording, and reporting of preapproval requests that are approved but not accepted used to be optional under Regulation C. As of January 1, 2018, covered institutions are now required to collect, record, and report information for approved but not accepted preapproval requests for home purchase loans. Preapproval requests for open-end lines of credit, reverse mortgages, and home purchase loans to be secured by multifamily dwellings are not covered transactions under the new rule. The Appendix to the rule states that incomplete preapprovals should not be reported.

However, prequalification requests are treated differently under the rule. Regulation C does not require an institution to report prequalification requests on the HMDA loan application register (LAR), even though these requests may constitute applications under Regulation B for purposes of adverse action notices. But be careful that your credit union is using the terminology correctly and the prequalification is not actually a preapproval under the rule. The important factors are whether a full credit underwriting with a commitment to lend takes place or if the approval is an informal estimate of an amount for which an applicant "might" qualify. What the credit unions calls the approval is not the controlling factor.

Source: CUNA Compliance Blog
Advocacy Highlight
CFPB Issues 11 th Request for Information
The Consumer Financial Protection Bureau (Bureau) recently issued a Request for Information (RFI) on consumer financial education. The Bureau is seeking comments and information from interested parties to assist the Bureau in assessing the overall efficiency and effectiveness of its consumer financial education programs. This includes the Bureau’s delivery of financial education through online tools, print publications, and community collaborations. This the 11th in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address consumer inquiries, and will be issued next week.


The CFPB will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on approximately April 9. The RFI will be open for comment for 90 days.

 
Source: CFPB
Texas ADA Lawsuit Dismissed Just Days After CUNA and Cornerstone File Brief
A lawsuit against a Texas credit union was voluntarily dismissed by the plaintiff, only days after CUNA and the Cornerstone Credit Union League  filed an amicus brief in defense of Local 20 IBEW FCU of Grand Prairie, Texas.

The lawsuit alleges violations of the Americans with Disabilities Act (ADA) from the credit union's website, part of a nationwide trend affecting credit unions due to uncertainty with the ADA.
 
"This case has resulted in another voluntary dismissal of a frivolous lawsuit in Texas, a very positive development coming only a few days after CUNA and the Cornerstone Credit Union League supported the credit union," said CUNA President/CEO Jim Nussle. "As we continue our advocacy efforts to find a solution for credit unions and their members, results like this send a message that abusing the Americans with Disabilities Act to exploit community financial institutions is not a winning strategy." [ Read more here ]
CUNA Webinar on USAA Remote Capture Patent Issues
Last month, CUNA and outside Counsel conducted a webinar to discuss the letters credit unions are receiving from a law firm inviting them to negotiate a patent licensing deal with USAA for the continued usage of remote deposit capture (RDC) technology. According to the letter, USAA was the first to develop and patent RDC technology, and the patent licensing campaign is an effort to recover “a small and fair portion” of the value USAA has provided to the financial services industry.
 
Nearly 500 credit union professionals heard from CUNA’s Senior Director of Advocacy – Lance Noggle, Gina Carter – Partner at Husch Blackwell, and Mike Rounds – Shareholder at Brownstein Hyatt Farber Schreck. During the webinar, CUNA and Counsel discussed:
  • What the letters do and do not say;
  • A bit about patent law;
  • The purpose of a warning letter like this one; and
  • Indemnification clauses.
 
CUNA is in the process of developing a strategy for how to handle these requests and need your help. If your credit union has received a letter from Epicenter Law Group, USAA, or others claiming to hold RDC patents, please contact us at  USAA.Patent@cuna.coop . Your information will not be shared.
 
Did you miss the webinar? 
It’s not too late – you can still watch a recorded version by  registering for free via this link!
 
Source: CUNA Removing Barriers Blog
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 .
 
CUNA Advocacy Update
The CUNA Advocacy Update is published at the beginning of every week and keeps you on top of the most important changes in Washington for credit unions--and what CUNA is doing to monitor, analyze, and influence government agencies and federal law. To receive this update, click on “Get CUNA Updates” on the CUNA Advocacy page . Additional Advocacy efforts may also be found under CUNA’s Removing Barriers blog . With the recent updates to CUNA’s website, Advocacy information has also changed. To view recent advocacy issues and see ways your credit union can become involved, visit the Priorities or Actions pages.
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.