Compliance Center: Washington State DOR to Require Electronic Filing of Unclaimed Property Reports

While we previously issued a compliance bulletin detailing the items that came out of the general session back in June, the Washington State Legislature continued to meet in special sessions to work out the State’s budget.

One special item from the DOR was tagged onto the funding budget that credit unions within Washington State should know about.

The DOR’s amendment affects the unclaimed property reports that are filed with the state by credit unions.  Beginning on July 1, 2016, credit unions will be required to file their reports electronically.  Which really means for the reports that will be filed November 2016.  Many credit unions are already using the UPExchange system to file their reports.  Those using the system will not have to do anything different.

Others will need to create an account with the electronic filing system in order to comply with the DOR’s requirement.

In addition, the DOR’s amendment will require payments to be submitted electronically, which many credit unions are already using the UPExchange system to do.

Credit unions should expect the DOR to update their Guide to Reporting Unclaimed Property in 2016 to reflect the removal of paper submissions.

Compliance Question of the Week

On Page 5 of the CFPB’s new Closing Disclosure, there is a section titled Liability After Foreclosure. Which box do we check if we lend in Oregon, Washington, and/or Idaho?

Since Oregon and Washington do have some form of potential protection from liability for the unpaid balance on a home loan, the credit union would want to check the first box: state law may protect you from liability for the unpaid balance. If you refinance or take on any additional debts on this property, you may lose this protection and have to pay any debt remaining even after foreclosure. You may want to consult a lawyer for more information.

Idaho does not have a provision that allows for potential protection from liability for unpaid balances (unless the creditor fails to file the necessary paperwork to collect the deficiency balance within the specified time frame). Because of this, the credit union would want to mark the second box: state law does not protect you from liability for the unpaid balance. 

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Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released its September 2015 Board Meeting Agenda.

The NCUA announced that it has released a new online training series to promote effective board leadership.  The first video is now available online and covers topic including developing a sound governance program, evaluating and supporting the manager, and traits of effective and ineffective chairmen.

The NCUA announced that it is launching its online Consumer Assistance Center. Consumers will be able to send their complaints and inquiries through the electronic portal as well as check the status of their complaints.

The NCUA announced that loan growth has increased and pointed out that Alaska and Idaho have the highest median loan growth rates.

Federal Reserve Board (FRB)

The FRB released its Second Quarter 2015 Consumer Compliance Outlook. This issue focuses on managing risk during the life cycle of a product. The issue lists the different stages of a product life cycle along with the considerations that financial institutions should take into account during each phase of the cycle.

The FRB announced that it will hold two webinars regarding the Payment Systems. The first webinar, “What’s Happening with the Faster Payments Task Force” will be held on Tuesday, September 15th.  The second webinar, “How Can I Weigh-in on Requirements for a Faster Payment System” will be held on Friday, September 18th.

The FRB released the July 2015 Consumer Credit Report. The report shows an increase during the month of July.

The FRB announced that it has added support for Axway Secure Client v6.1 SP3.

Federal Deposit Insurance Corporation (FDIC)

The FDIC released its second quarter state profiles report.

Federal Financial Institutions Examination Council (FFIEC)

The FFIEC issued a press release detailing the steps that regulators are taking to streamline and simplify regulatory reporting requirements for community banks.

Office of the Comptroller of the Currency (OCC)

The OCC issued a news release to savings associations and banks, encouraging them to be prepared for natural disasters and other emergencies. 

National Mortgage Licensing System (NMLS)

The NMLS released its second quarter Mortgage Industry Report. The report shows the number of MLOs registered through June 30, 2015 and discusses MLO activities.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of September 10, 2015. The last update prior to this was September 9, 2015.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, NCUA.