Compliance

One credit union industry insider has two more compliance issues high on her radar right now: overdraft practices and the Bank Security Act.

As credit unions are scrambling to be ready for the Aug. 1 implementation of the new TILA/RESPA disclosures, they're also bracing for the next compliance storm headed their way: new HMDA data collection requirements.

After rumors had been flying that the agency was looking to craft a new member business lending rule, NCUA's Debbie Matz confirmed an MBL proposal will be on the agenda for the regulator's June 18 board meeting. Meanwhile, experts outline what they see as some of the top compliance concerns for CUs right now.

The digital currency world is readying itself for more regulatory penalties over the failure to meet Bank Secrecy Act and anti-money-laundering requirements following federal agencies' action against Ripple Labs last month.

Given the small number of CUs cited and the fact none were actually accused of any wrongdoing, it would be easy to shrug off the recent ruckus about FinCEN's report on potential anti-money laundering problems at credit unions. But that would be a mistake.

Nearly 80% of consumers making payments to doctors or hospitals would prefer to do so through a one-click method on their health-plan provider's website, according to data from health care payments provider InstaMed.

The mortgage lender Nationstar Mortgage Holdings is pouring a lot of energy into a digital and mobile homebuying platform called Xome. The strategy could attract tech-savvy millennials but carries plenty of risks including whether consumers would be improperly steered to its products.

More than a dozen housing groups joined with the credit union trade association to urge lawmakers to pass legislation that would grant lenders a formal grace period for implementing new disclosure forms later this summer, arguing that the industry needs greater certainty than the Consumer Financial Protection Bureau has so far provided.

Credit unions are bracing themselves for a major storm on Aug. 1. That's when the new RESPA-TILA Integrated Mortgage Disclosures Rule goes into effect, ushering in a complete change to the disclosure forms sent to borrowers as they close their mortgages.

Both parties have now put their stamps on competing regulatory relief bills, but the success or failure of reform legislation this year still likely rests in the hands of moderate Democrats.

The Bitcoin Foundation's goal of promoting the new digital currency was quickly overshadowed by the personal and legal problems of its management. Now, under new leadership, the group aims to return to its original mission.

Merchants face a confusing onslaught of terminal updates, encryption, tokenization and EMV, placing organizations like the Payment Card Industry Security Standards Council (PCI SSC) in the role of trying to make sense of the changes.

U.S.-based payment processor Total System Services (TSYS) has launched a service called Chip Card on Demand that provides issuers the option to add EMV chips to compatible magstripe cards during the production process.

New York financial watchdog Benjamin Lawsky is stepping down, and his successor is likely to follow a similar strict yet innovative approach to Wall Street oversight. However, the next head of NYDFS would likely benefit from better industry relations.

The Louisiana Real Estate Appraisers Board has fined an appraisal management company $5,000 for failing to pay "customary and reasonable" fees to appraisers.

Nacha recently announced a rule change allowing for same day ACH payments. This decision was a heavily debated throughout the industry for several years.

The regulatory burden for originators has not only been the main driver of acquisition activity in mortgages but also influences deal structures. Acquirers are looking to craft transactions so they don't get burned by targets' compliance lapses.

As part of its proposed sale to Royal Bank of Canada, City National has made a big Community Reinvestment Act commitment, which includes targeting small-business loans at the minority- and women-owned suppliers of three power companies.

In the wake of a report that the Financial Crimes Enforcement Network (FinCEN) has identified more than 50 credit unions at risk of serving as a conduit for money laundering activities, the CU trades and regulators alike were scrambling to respond to what NCUA suggested could be a “regulatory blind spot.”

New York’s financial services regulator revealed its final version of a new digital currency regulatory framework Wednesday, but a big question already is whether the effort will get replicated in other states.