Compliance Center: HUD Issues Guidance on Multifamily Assisted and Insured Housing Based on Equal Access to Housing Rule

As part of the White House Conference on Aging today, the U.S. Department of Housing and Urban Development (HUD) issued guidance to better serve and help avoid discrimination against LGBT Americans seeking HUD-assisted or HUD-insured housing. The guidance will help clarify the Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Rule (Equal Access Rule), which was originally published in 2012. The Equal Access Rule ensures that housing across HUD programs is open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity or marital status, including Section 202 Supportive Housing for the Elderly.

“Every American deserves to live with dignity, regardless of who they love or who they are,” said HUD Secretary Julián Castro. “HUD is committed to fighting unjust discrimination and to expanding housing opportunity for all.”

HUD’s guidance on multifamily and insured housing programs clarifies that a determination of eligibility for housing that is assisted by HUD or subject to a mortgage insured by the Federal Housing Administration (FHA) shall be made in accordance with the eligibility requirements provided for such a program by HUD, and be made available without regard to actual or perceived sexual orientation, gender identity, or marital status. The guidance also clarifies that no owner of administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage insurance program, nor any recipient or sub-recipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted housing or housing whose financing is insured by HUD, whether renter or owner occupied.

Violations of the rule and guidance could result in HUD’s determination that the owner has failed to comply with program requirements.  HUD may pursue any available remedy, including sanctions, that it determines appropriate to remedy the violation. 

For more information on this guidance, please visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/notices/hsg.

Compliance Question of the Week

What is the NCUA’s regulation on record retention?

Credit unions often look to NCUA for guidance on the appropriate length of time to retain various types of operational records. NCUA does not regulate in this area, but as an aid to credit unions it is publishing this appendix of suggested guidelines for record retention. NCUA recognizes that credit unions must strike a balance between the competing demands of space, resource allocation and the desire to retain all the records that they may need to conduct their business successfully. Efficiency requires that all records that are no longer useful be discarded, just as both efficiency and safety require that useful records be preserved and kept readily available.

A. What format should the credit union use for retaining records?

NCUA does not recommend a particular format for record retention. If the credit union stores records on microfilm, microfiche, or in an electronic format, the stored records must be accurate, reproducible and accessible to an NCUA examiner. If records are stored on the credit union premises, they should be immediately accessible upon the examiner’s request; if records are stored by a third party or off-site, then they should be made available to the examiner within a reasonable time after the examiner’s request. The credit union must maintain the necessary equipment or software to permit an examiner to review and reproduce stored records upon request. The credit union should also ensure that the reproduction is acceptable for submission as evidence in a legal proceeding.

B. Who is responsible for establishing a system for record disposal?

The credit union’s board of directors may approve a schedule authorizing the disposal of certain records on a continuing basis upon expiration of specified retention periods. A schedule provides a system for disposal of records and eliminates the need for board approval each time the credit union wants to dispose of the same types of records created at different times.

C. What procedures should a credit union follow when destroying records?

The credit union should prepare an index of any records destroyed and retain the index permanently. Destruction of records should ordinarily be carried out by at least two persons whose signatures, attesting to the fact that records were actually destroyed, should be affixed to the listing.

D. What are the recommended minimum retention times?

Record destruction may impact the credit union’s legal standing to collect on loans or defend itself in court. Since each state can impose its own rules, it is prudent for a credit union to consider consulting with local counsel when setting minimum retention periods.

A record pertaining to a member’s account that is not considered a vital record may be destroyed once it is verified by the supervisory committee. Individual Share and Loan Ledgers should be retained permanently. Records, for a particular period, should not be destroyed until both a comprehensive annual audit by the supervisory committee and a supervisory examination by the NCUA have been made for that period.

E. What records should be retained permanently?

Official records of the credit union that should be retained permanently are:

  1. Charter, bylaws, and amendments.
  2. Certificates or licenses to operate under programs of various government agencies, such as a certificate to act as issuing agent for the sale of U. S. savings bonds.
  3. Current manuals, circular letters and other official instructions of a permanent character received from the NCUA and other governmental agencies.

Key operational records that should be retained permanently are:

  1. Minutes of meetings of the membership, board of directors, credit committee, and supervisory committee.
  2. One copy of each NCUA 5300 financial report or its equivalent.
  3. One copy of each supervisory committee comprehensive annual audit report and attachments.
  4. Supervisory committee records of account verification.
  5. Applications for membership and joint share account agreements.
  6. Journal and cash record.
  7. General ledger.
  8. Copies of the periodic statements of members, or the individual share and loan ledger. (A complete record of the account should be kept permanently.)
  9. Bank reconcilements.
  10. Listing of records destroyed.

F. What records should a credit union designate for periodic destruction?

Any record not described above is appropriate for periodic destruction unless it must be retained to comply with the requirements of consumer protection regulations. Periodic destruction should be scheduled so that the most recent of the following records are available for the annual supervisory committee audit and the NCUA examination. Records that may be periodically destroyed include:

  1. Applications of paid off loans.
  2. Paid notes.
  3. Various consumer disclosure forms, unless retention is required by law.
  4. Cash received vouchers.
  5. Journal vouchers.
  6. Canceled checks.
  7. Bank statements.
  8. Outdated manuals, canceled instructions, and nonpayment correspondence from the NCUA and other governmental agencies.

Related Links:

Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it will hold a forum on Know Before You Owe- eClosing. The forum will be available online via a live streaming video.

The CFPB issued its first monthly complaint report, providing a high-level snapshot of trends in consumer complaints.

CFPB Director Cordray delivered prepared remarks at the White House Conference of Aging.

CFPB Director Cordray delivered written testimony to the Senate Committee on Banking, Housing, and Urban Affairs.  The testimony discusses what the CFPB has accomplished since its creation. 

Federal Reserve Board (FRB)

The FRB announced that it will hold a webinar on Wednesday, July 29th on common violations and hot topics. The webinar will focus on common violations concerning HMDA, Equal Credit Opportunity Act, Flood, and UDAP. You can register for the webinar here.

The FRB announced that it will hold a board meeting on Monday, July 20th. A recorded version of the meeting will be available on the FRB’s public website.

The minutes of the FRB’s June 2015 discount rate meeting have been published.

The FRB’s July edition of FedFlash is now available.

The FRB released the July 2015 issue of the Beige Book.

FRB Chair Yellen delivered testimony before the Committee on Financial Services. Yellen’s testimony focused on the current economic situation and outlook, monetary policy, and the FRB’s transparency and accountability. 

U.S. Department of Housing and Urban Development (HUD)

HUD issued guidance on multifamily assisted and insured housing based on equal access to housing rule. The guidance clarifies that the rule applies to all eligible participants, regardless of their sexual orientation, marital status or gender identity. 

Federal Housing Finance Agency (FHFA)

The FHFA has released a strategic plan for its Office of Minority and Women Inclusion. The plan details how the OMWI will support the diversity and inclusion mandates found in the Dodd-Frank Act. 

Department of the Treasury (Treasury)

The Treasury published a Notice and Request for Information regarding the expansion of access to credit through online marketplace lending. The Treasury is looking for information on various business models of and products offered by online marketplace lenders to small businesses and consumers; the potential for online marketplace lending to expand access to credit to historically underserved market segments; and how the regulatory framework should evolve to support the safe growth of this industry. 

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of July 9, 2015. The last update prior to this was July 2, 2015. 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance News, NCUA.