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 – Security
Part 748 of the NCUA Rules and Regulations requires that each federally-insured credit union develop a comprehensive written security program (including administrative, technical, and physical safeguards appropriate to their size, complexity, and the nature and scope of their operations). Does your credit union utilize Social Media? Do you do wire transfers? Would you know what to do if one of your elderly members has been the victim of elder abuse or fraud? In the Security channel of InfoSight, you will find a variety of topics on these and many others, including cybersecurity, cloud computing, internal controls, identity theft and more.

Be sure you are kept up-to-date with the information in the Security 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
Bureau finalizes TRID rule amendment
Last week, the CFPB (which is now referring to itself as "The Bureau of Consumer Protection") finalized the July 2017 proposed amendments to the TILA-RESPA rule in attempt to get rid of what has become known to compliance folks as the "black hole" problem. TILA-RESPA Rule requires creditors to provide consumers with good faith estimates of the loan terms and closing costs required to be disclosed on a Loan Estimate. Under the rule, an estimated closing cost is disclosed in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed, subject to certain exceptions.

If the conditions for using such revised estimates are met, the creditor generally may provide revised estimates on a revised Loan Estimate or, in certain circumstances, on a Closing Disclosure. However, under the current rule, circumstances may arise in which a cost increases but the creditor is unable to use an otherwise permissible revised estimate on either a Loan Estimate or a Closing Disclosure for purposes of determining good faith. This situation, known as the TRID "black hole," often occurs when the lender has already provided the borrower with the Closing Disclosure when it learns of the fee increase. Currently, a creditor may only use a Closing Disclosure to reset tolerances if there are fewer than four business days between the time the creditor is required to provide the Closing Disclosure reflecting the revised estimate (i.e., within three business days of receiving information sufficient to establish a reason for revision) and consummation. This is referred to as the "four-business day limit." As a result, credit unions are often forced to absorb increased costs that would otherwise be rightfully passed on to the member but for this four-day limit. 

To address this situation, in July 2017, the Bureau proposed to address the issue by specifically providing that creditors may use Closing Disclosures to reflect changes in costs for purposes of determining if an estimated closing cost was disclosed in good faith, regardless of when the Closing Disclosure is provided. Last week, the Bureau finalized this proposed amendment, thus once it becomes effective 30 days after publication in the Federal Register, there will no longer be a four-day limit for resetting tolerances with revised closing disclosures. Therefore, if a changed circumstance or another triggering event has occurred, the 2018 TILA-RESPA Rule permits a creditor to reset tolerances with either an initial or corrected Closing Disclosure regardless of the number of days between consummation and the date the Closing Disclosure reflecting the revised estimate is required to be provided to the consumer. However, keep in mind that the four-day limit will remain in effect for revised Loan Estimates, just not revised Closing Disclosures.

Source: CUNA Compliance Blog
FinCEN Advisory on Jurisdictions with AML/CFT Deficiencies
Recently, FinCEN issued Advisory FIN-2018-A002 on FATF-identified jurisdictions with anti-money laundering and combatting the financing of terrorism (AML/CFT) deficiencies. FATF issued its updated list on February 23, 2018.

 
Source: FinCEN
Advocacy Highlight
Comments Due Throughout the Month of May
One of the best ways to get involved with advocacy issues that have a direct effect on your credit union is to stay on top of the current trends and write comment letters stating your credit union’s stance. For a current listing of Bureau of Consumer Financial Protection (CFPB) proposals as well as suggested changes to NCUA bylaws, click on this link from CUNA.  
 
Source: CUNA
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
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.