NCUA Issues Final Rule on Joint-Ownership Share Accounts

The National Credit Union Administration approved a final rule amending the NCUA’s regulation governing the requirements for a share account to be separately insured as a joint account. Under the final rule, even if an insured credit union cannot produce membership cards or account signature cards signed by the joint accountholders, the signature card requirement can be satisfied by information contained in the account records of the insured credit union establishing co-ownership of the share account. For example, the signature card requirement can be satisfied by the credit union having issued a mechanism for accessing the account, such as a debit card, to each co-owner or evidence of usage of the joint share account by each co-owner.

Question of the Week

Q. If a married couple gets a divorce and the outstanding joint loan balance goes delinquent, can the credit union collect against either ex-spouse, or just against the one that the court assigned responsibility for the loan?

A. The credit union can collect against either ex-spouse. The division of debt in the divorce decree affects on the ex-spouses, not creditors. When the court assigns responsibility for a loan to one ex-spouse, a contract is being created between the parties to the marriage. In this case, if the credit union collected from the ex-spouse who was not assigned responsibility by the court, the ex-spouse could bring an action against the other ex-spouse for violation of the court order.

Compliance Alerts

Consumer financial Protection Bureau

Updated ATR/QM Small Entity Compliance Guide: The CFPB has updated the small entity compliance guide and other compliance aids related to the Ability to Repay and Qualified Mortgage Rule.

Federal Financial Institutions Examination Council

Federal and State Regulators Release Updates to the BSA/AML Examination Manual: The FFIEC released updates to four sections of the BSA/AML Examination Manual. The updates affect (1) Introduction – Assessing Compliance with Bank Secrecy Act Regulatory Requirements (2) Customer Identification Program (3) Currency Transaction Reporting and (4) Transactions to Exempt Persons

Federal Housing Finance Agency 

FHFA Extends COVID-19 Forbearance Period and Foreclosure and REO Eviction MoratoriumsFHFA announced that Fannie Mae and Freddie Mac (the Enterprises) are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until June 30. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on March 31.

FHFA also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional three-month extension of COVID-19 forbearance. This additional three-month extension allows borrowers to be in forbearance for up to 18 months.

Office of Foreign Assets Control

OFAC has updated the SDN list as of Feb. 26. The last update prior to this was Feb. 16.

Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News, Compliance News.