How To Lighten Load In Dealing With Latest Wave of Regulations

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SAN ANTONIO-Credit unions are being offered some advice and strategies for dealing with the next wave of regulations.

Noting that regulations for lenders are seemingly endless, Bill Klewin of CUNA Mutual Group told an audience at CUNA's America's Credit Union Conference that there are steps that can be taken to prepare for what's coming.

"Regulatory compliance is a major issue for credit unions to manage, especially when the rules keep changing," said Klewin, director of regulatory compliance. "Because the rules are complex and lengthy, credit unions must plan effectively for the risks."

Klewin reminded the audience of "the deluge of laws" with which financial institutions have been faced in the last few years, including:

• SAFE Act of 2008

• Credit CARD Act of 2009

• Mortgage Disclosure Improvement Act

• Dodd-Frank Wall Street Reform and Consumer Protection Act

• Unfair and Deceptive Acts and Practice Rules

• Real Estate Settlement Procedures Act

• Department of Defense Rules

• Servicemembers' Civil Relief Act

• Private Student Loans

In addition to the plethora of new laws, credit unions are also subject to regulations regarding truth-in-lending (Regulation Z), consumer leasing (Regulation M), equal credit opportunity (Regulation B) and the Fair Credit Reporting Act.

"Reg Z was once a relatively stable regulation," said Klewin. "Not anymore. It's become a catch-all for anything remotely related to lending, making compliance a challenge for every lender." Klewin took the audience through the many changes and additions to Reg Z that directly affect lending regulations, reminding them that putting their heads in the sand is not a good strategy.

"The complexity and depth of the compliance changes will tax your staff and will be expensive, so the news isn't good," he said. "You really need to plan long-term to deal with all the changes and uncertainty.

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