Links in “Credit Unions”

Twelve bills aimed at providing regulatory relief to financial institutions are to be discussed by the House Committee on Financial Services this Thursday. Six of those bills are backed by CUNA. [6/9/15]

That’s the question that many are asking in light of the CFPB’s statement that it will consider a financial institution’s good faith effort to comply with the requirements for the new TILA/RESPA combined disclosure in its examinations. Other regulators have been urged to follow suit. A new Fact Sheet issued by the CFPB clarifies some of the delivery issues being raised by financial institutions. [6/8/15]

A recent article in Bloomberg Business reports that financial institutions may be able to continue to protect the significant income they receive from overdraft fees. After three years of studying overdraft protection programs, an insider at the CFPB told Bloomberg that it is unlikely that the proposed rule will cap the fees that financial institutions can charge, but may bar the reordering on overdrafts to maximize fee income and may require better disclosure of polices that allow consumers to avoid fees. [6/8/15]

The CFPB has fined PHH Corporation, a New Jersey lender, $109 million for illegally accepting kickbacks in the form of mortgage reinsurance premiums paid by mortgage insurance companies to a PHH subsidiary. RESPA prohibits the payment of kickbacks for the referral of mortgage services. [6/8/15]

The U.S. Government Office of Personnel Management has announced that its network has been the victim of a massive data breach.  Hackers based in China have stolen information related to the employee records and security clearances for 4 million current and former federal government employees. [6/5/15]

The NCUA’s Letter to Credit Unions 15-CU-04 outlines the agency’s streamlined and improved consumer complaint process.  Among other changes, the NCUA will now allow credit unions up to 60 days to resolve consumer complaints. [6/5/15]

The NCUA will be hosting a webinar entitled, “Remittances and Other Money Transfer Services” on July 17^th at 2:00 pm EST.  The webinar is designed for credit unions that want more information about international funds transfers and the regulatory requirements related to these types of transactions. [6/5/15]

NCUA Chair Debbie Matz will be hosting a town hall webinar on Tuesday, July 29 at 3:00 pm EST that will cover a range of subjects that include updates on CU industry performance, the NCUA Regulatory Modernization Initiative, regulatory relief, upcoming revisions to the MBL rule, cybersecurity, and interest rate risk. [6/5/15]

In a letter to members of the House Financial Services Committee, the CFPB has clarified the three circumstances under which credit unions and other mortgage lenders must restart the clock to allow consumers three business days to review their mortgage package before closing. Those three circumstances are: (1) if the lender increases the APR by more than 12.5 basis points for a fixed rate mortgage or by more than 25 basis points for an ARM; (2) if the lender adds a prepayment penalty; or (3) if the lender changes the loan from a fixed rate product to an ARM. [6/5/15/]

Several Virginia Credit Union ATMs were used in the skimming scam, resulting in 2,000 vulnerable debit cardholders. The breach was discovered during normal ATM maintenance and seems to have taken place over a limited period of time. VACU is working to issue new cards and refunding victims. [6/4/15]