Compliance Center: CFPB Releases Fall Rulemaking Agenda

The Consumer Financial Protection Bureau (CFPB) released its Fall 2014 rulemaking agenda on Friday, November 21, 2014 in conjunction with the Office of Management and Budget’s (OMB) Unified Agenda of Regulatory and Deregulatory Actions.  The Unified Agenda is published in the Federal Register twice a year to give the public some insight into federal agency priorities for the coming months.

The Bureau highlighted several key areas of focus in its Fall Agenda, including mortgages, prepaid cards, payday loans, debt collection and overdraft services.  Implementation of the TILA/RESPA Integrated Disclosure rule, which is effective August 1, 2015 was also listed as a priority.

In July 2014, the Bureau released a proposed rule that would implement changes to the Home Mortgage Disclosure Act (HMDA) in accordance with the Dodd-Franks Act’s amendments to HMDA.

In November 2014, the Bureau released a proposed rule that would provide comprehensive consumer protections for prepaid financial products.  The proposed rule would extend Regulation E protections requiring certain disclosures and error resolution rights to prepaid products, and would cap liability for unauthorized use of prepaid cards under certain conditions.  For prepaid products with credit or overdraft features, the proposed rule would extend some Regulation Z protections, including Regulation Z’s credit card rules.

The Fall Agenda reiterated the Bureau’s intent to tackle rules for payday lending products, debt collection, and overdraft services.  The Bureau noted the extensive research that they have conducted in these areas, that additional research was planned, and that potential rulemaking might address disclosures and acts and practices in connection with these products.

Compliance Question of the Week

Can I advertise my certificate account as a CD or Certificate of Deposit?

This depends on whether the credit union is state or federally chartered.  Washington and Oregon state chartered credit unions are permitted to pay interest and/or dividends on accounts, while federally chartered credit unions are only permitted to pay dividends. CDs, or Certificates of Deposits, are interest bearing accounts.  Therefore, if a credit union is state chartered and offers interest on accounts, it can offer a CD, or Certificate of Deposit.  However, if the credit union is federally chartered, it cannot offer a Certificate of Deposit or CD because federally chartered credit unions cannot pay interest.

It is important to note that Truth in Savings states that an advertisement must never be misleading, inaccurate or misrepresent a credit union’s account agreement.

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Legal Briefs

National Credit Union Administration (NCUA)

The NCUA issued its Board Action Bulletin detailing the actions at the November 2014 Board Meeting. The Action Bulletin includes information on the Share Insurance Premium Fund premium, which is estimated to be at a range of zero to five basis points for 2015.

The November issue of the NCUA Report is now available.

NCUA Chairman Matz announced that she will request the NCUA Board to considers a reviewed risk-based capital rule at the January 2015 Board Meeting.

Consumer Financial Protection Bureau (CFPB)

The CFPB posted its Fall 2014 rulemaking agenda.

The CFPB released proposed amendments to the Mortgage Servicing Rules under RESPA and Reg Z. The amendments are aimed at expanding foreclosure protections for homeowners.

The CFPB issued Bulletin 2014-03 detailing guidelines lenders should follow when conducting income verification for Social Security Disability recipients.

The CFPB posted a blog post regarding veterans that have student loan debt, student loan forgiveness, and how it can damage their credit.

Department of the Treasury (Treasury)

The Treasury announced that it has changed the U.S. Treasury check stock. Credit unions should be aware of the changes as these checks are already in circulation. However, the Treasury did also note that the old check stock will still be in circulation through the end of 2015.

The Government Accountability Office (GAO)

The GAO issued their report on the Initial Effects of Basel III on Capital, Credit, and International Competitiveness.

Federal Deposit Insurance Corporation (FDIC)

The FDIC announced the release a video to help compliance officers comply with the CFPB’s Ability to Repay and Qualified Mortgage Rule. 

Federal Reserve Board (FRB)

The FRB announced the designation of the chairs and deputy chairs of the 12 Federal Reserve Banks for 2015.

The October meeting minutes of the Federal Open Market Committee are now available.

The FRB announced that two separate reviews are underway at the FRB to ensure the effectiveness of examinations at large banking organizations.

The FRB issued a new report detailing expectations, work experience, and educational attainment of adults aged 18 to 30, titled In the Shadow of the Great Recession: Experiences and Perspectives of Young Workers.

The FRB updated their Reserve Maintenance Manual.

The November edition of FedFlash is now available.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of November 19, 2014. The last update prior to this was November 12, 2014.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal.