Idaho Transportation Department to Deploy New Title and Registration System

Financial institutions are advised to conduct a vehicle history search that will provide NMVTIS information prior to providing a loan.

9/29/2020

Beginning Oct. 13, lenders may encounter more title brands that did not appear on title certificates when financing vehicle purchases. This is due to a new title and registration system the Idaho Transportation Department Division of Motor Vehicles will be deploying that utilizes information retrieved from the National Motor Vehicle Title Information System (NMVTIS).

NMVTIS maintains a central database of title records and brands reported by nearly all 50 states, as well as salvage and junk vehicle information reported by insurance companies, salvage pools, and junk yards across the country. ITD’s new system will send an inquiry to NMVTIS with every title transaction. Idaho Code and administrative rule requires ITD to carry forward any brand retrieved from NMVTIS to subsequent titles, to consider as “salvage” any vehicle reported as such by an insurance company or salvage yard, and to prohibit titling of any vehicle reported as “crushed” or “scrapped” by a junk yard or automobile recycler. This will occur even if the brand or condition did not appear on the prior title certificate.

ITD strongly advises all financial institutions to conduct a vehicle history search that will provide NMVTIS information prior to providing a loan for any vehicle. NMVTIS vehicle history reports are accessible through the DMV website at dmv.idaho.gov. Select the “Registration/Plates” tab, go to the online services section and select “Check Vehicle History.” Each data or report provider offers the ability to establish accounts. Contact providers for pricing information.

Question of the Week

Q. What is FinCEN’s 314(b) program?

A. The 314(b) program allows financial institutions to share information with one another, under a safe harbor, to help better identify and report potential money laundering or terrorist activities.

This program is voluntary and credit unions should make sure that they are properly registered (if they choose to participate) and that they are sharing information only with other 314(b) registered financial institutions. If you are registered as a 314(b) information-sharing institution, you should receive an email with a link to the most up to date list of other participants.

Legal Briefs

National Credit Union Administration

Amended Field of Membership Application Requirements for Combined Statistical Area and Core-Based Statistical Area
The NCUA released Letter to Federal credit unions 20-FCU-03 to provide information regarding the amendments to the NCUA’s chartering and field-of-membership rules.

Consumer Financial Protection Bureau (CFPB)

Perceived Financial Preparedness, Savings Habits, and Financial Security
The CFPB released a brief which provides insight into consumers’ perceived financial preparedness. For many people there is an observed gap between what they think they need and what they have.

Federal Housing Finance Agency

FHFA Further Extends Buying Loans in Forbearance & COVID-Related Loan Processing Flexibilities
The FHFA announced that Fannie Mae and Freddie Mac will extend buying qualified loans in forbearance and several loan origination flexibilities until Oct. 31.

Oregon Department of Justice

After the Disaster: How to Avoid Scams
The Oregon DOJ released a scam alert to provide tips on avoiding post-disaster scams.

NACHA

Updated FAQs
NACHA updated its FAQs to provide new information on EIP ACH credit entries. The “Company Name” field will continue to read “IRS TREAS 310” and the “Company Entry Description” will read “TAXIP1.”

Office of Foreign Assets Control

OFAC has updated the SDN list as of Sept. 24. The last update prior to this was Sept. 17.

Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].