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
RESPA’s Borrower Protections and Prohibited Practices
As mentioned in an article below, it’s a good reminder of activities that are considered a “kickback” when it comes to RESPA-related loans. The Detailed Analysis in the Loans and Leasing channel provides more specific details for your review.
Compliance Videos
Compliance Connection Video
In this video , League InfoSight CEO Glory LeDu talks about the highlights from the 4 th Quarter of 2018 and the 1 st Quarter of 2019.

When S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, passed in 2018 there was a lot to understand! Glory LeDu, League InfoSight CEO, provides Part 1 in this short video to break it down for you.
Compliance News
Review of RESPA’s Anti-kickback Provision
Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement services in connection with any loan covered by RESPA. The Act also prohibits fee splitting and receiving unearned fees for services not actually performed. These restrictions apply in any situation where settlement services are related to a federally related loan. The rendering of services by a mortgage broker is a “settlement service” for purposes of the rule. 
 
Some examples: Let’s suppose a real estate agent hosts an open house for brokers, and a mortgage lender offers to pay for lunch at the open house.  This would violate RESPA because the mortgage lender has just provided a thing of value (lunch) in consideration for the referral of business in violation of RESPA’s anti-kickback provision.  Now, what if instead, the lender gave the real estate agent marketing materials, such as desk calendars, pens, and notepads, all of which promote the mortgage lender company’s name. While this seems like it would be a “thing of value” on par with lunch, there is actually an exception in RESPA for normal promotional and educational activities that are not conditioned on the referral of business and that do not defray expenses that otherwise would be incurred by persons in a position to refer settlement service business. Likewise, if the mortgage lender had attended the open house to market its services or make a presentation, then paying for the lunch could be also be lawful. What about providing gifts or promotional gift cards in the context of a settlement service? This is not acceptable in most cases. In the past, HUD has settled with an appraiser who gave a mortgage company’s employees restaurant gift certificates in exchange for referrals.
 
Another example: what if a real estate agent and a mortgage lender agree to place a joint advertisement in the paper together and both split the cost of the advertisement 50/50? Provided the ads were of equal size and the fees were split evenly, this would not be a RESPA violation. Nothing is RESPA prevents joint advertising, provided each party is paying their pro-rata share.
 
Source: CUNA Compliance Blog
Bureau updates TRID FAQs
The Consumer Financial Protection Bureau has updated its  TILA-RESPA Integrated Disclosure ("TRID") FAQs . The FAQs address questions relating to:
  • Corrected closing disclosures and the three business-day waiting period before consummation
  • Model forms
  • Construction loans (added)
CFPB Launches Financial Education Tool for Active-Duty Servicemembers
The Consumer Financial Protection Bureau (CFPB) significantly expanded its Misadventures in Money Management financial education tool to active duty servicemembers. Misadventures in Money Management ( MIMM.gov  ) was initially developed for future servicemembers who signed a contract to enlist in the armed forces, but had not yet shipped off to basic military training. The CFPB is expanding the program to be available for all servicemembers on active duty, including in the Reserve or the National Guard.
 
Source:  CFPB
Register Now for June 18 Flood Insurance Webinar
Online registration  is open for a June 18 webinar discussing  updates to the flood insurance rule .
The webinar, hosted by the National Credit Union Administration and four other federal financial regulatory agencies, is scheduled to begin at 2 p.m. Eastern and run approximately one hour. Participants will be able to log into the webinar and view it on mobile devices using the registration link.
Staff from the NCUA, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency will cover topics including:

  • Mandatory acceptance of private flood insurance,
  • Mandatory acceptance compliance aid,
  • Discretionary acceptance of private flood insurance,
  • Flood coverage provided by mutual aid societies, and
  • Recommended preparations for compliance with the new rule.

A question-and-answer session will follow the presentation. Participants also may submit questions in advance at  fedwebinar@sf.frb.org . Credit unions may wish to review the  NCUA’s online flood insurance resources .
 
Source: NCUA
Advocacy Highlight
CUNA Advocacy Update
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
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.