CFPB Proposes Extension of the Use of Estimates on Remittance Transfer Disclosures

The Consumer Financial Protection Bureau (CFPB) has released a proposed rule that would extend a temporary provision that allows credit unions to use estimates for certain fees on remittance transfer pricing disclosures.

Under the CFPB remittance transfer rule, credit unions are required to give prepayment and receipt disclosures to the member-sender that include the exchange rate, certain fees, and taxes associated with the transfer.  There currently is a temporary provision that allows credit unions to use estimates for third-party fees and exchange rates, but this temporary provision was set to expire on July 21, 2015. 

In the proposal, the CFPB will extend the use of exceptions until July 21, 2020.

In addition, the CFPB is issuing additional clarifications which include:

  • Consider whether U.S. military installations abroad should be considered to be located in a U.S. state or a foreign country for purposes of the remittance rule;
  • Clarify that transfers from accounts primarily used for personal, family, or household purposes would be subject to the remittance rule, but transfers from non-consumer accounts would not be subject to the rule;
  • Clarify that faxes are considered writings and, separately, clarify that in certain circumstances, a remittance transfer provider may conduct the transaction orally and entirely by telephone after receiving a remittance inquiry from a consumer in writing; and
  • Clarify that a provider’s failure to deliver a transfer by the disclosed date of availability is not an error if such failure was caused by a delay related to a necessary investigation or other action to address BSA, OFAC, or similar requirements; and, separately, clarify remedies for certain errors.

Question of the Week

Which logo do I use: Equal Housing Opportunity, or Equal Housing Lender?     

With respect to written and visual advertisements:

  • Federal credit unions may satisfy the notice requirement by including in the advertisement a copy of the logotype with the legend “Equal Housing Lender” or a copy of the logotype with the legend “Equal Housing Opportunity.”
  • State credit unions are regulated under HUD and must use “Equal Housing Opportunity.”

Both federal and state-chartered credit unions are prohibited from engaging in any advertising of real estate-related loans that violate the Fair Housing Act or the Equal Credit Opportunity Act. 

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Federal Financial Institutions Examination Council (FFIEC)

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National Automated Clearing House Association (NACHA)

NACHA has issued a request for information regarding Payment Related Information via Expanded Addenda Records. The comments are due by May 16.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of April 28. The last update prior to this was April 24.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.