OLYMPIA, Wash. The Department of Financial Institutions announced plans for tougher consumer compliance examinations for state chartered credit unions over $500 million in assets by separating them from regular safety and soundness exams, focusing solely on consumer and regulatory compliance, and providing a separate compliance rating and report for the credit union.
Almost all of the state’s largest credit unions are state chartered, with about 20 of them having more than $500 million in assets.
The DFI said it plans to complete the compliance examinations for those credit unions over the next 20 months and develop a 20-month cycle for the exams.
The new exam format comes amid heightened scrutiny on consumer compliance by the Consumer Financial Protection Bureau and NCUA.
Examiners will review compliance for 24 federal and state consumer laws, including Bank Secrecy Act, Electronic Funds Transfer Act, Fair Credit Reporting Act, Fair Housing Act, Homeowners Protection Act, Truth In Lending Act, Service Members Civil Relief Act and Washington Foreclosure Fairness Act.
