Compliance Resources for Your Credit Union

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August 30, 2021

InfoSight Compliance Newsletter
Vol. 15 Issue 33

Created in Partnership with the Credit Union National Association and League InfoSight


Marketing Workshop to Cover Advertising Compliance

Join us Oct. 13 and 14 for the Marketing Workshop, now a virtual event, for sessions on advertising compliance, strategic planning, digital marketing and more! Registration is only $99 for both days.

Kristen Tatlock, senior compliance manager of AUX, will cover:
  • Understand advertising rules for both digital and print
  • Review disclosure requirements using real-life examples of credit union advertising
  • Learn to avoid the common and not-so-common compliance errors related to advertising
  • Attendees receive a digital compliance guide covering advertising rules for products and services
Learn more | Register

League Writes Lawmakers in Opposition to Expanded 1099s

Your League this week wrote members of the Virginia Congressional Delegation urging them to oppose the Senate’s Fiscal Year 2022 Budget Resolution that proposes financial institutions be required to report significant amounts of aggregate data to the IRS through an expanded Form 1099-INT.

The proposal is so broad, with a de minimis exception so low ($600), that most accounts and accountholders will be subject to reporting, notes the League.

Credit unions and banks would be required under the proposal to annually report gross inflows and outflows of accounts (both businesses and individuals) with a breakdown for cash, transactions with a foreign account, and transfers to and from another account with the same owner.

Read more

Mortgage Loan Originator Training Slated for Sept. 29-30 as Virtual Course

In partnership with the Kentucky Credit Union League, we're offering Mortgage Loan Originator Training Sept. 29 and 30. This virtual course is a comprehensive overview of the mortgage lending process. New loan originators as well as those looking to satisfy their periodic training requirement under Regulation Z would benefit from attending this course.

To register, contact your League’s mary Amyx at 800.768.3344, ext. 630 or

Learn more

CU PolicyPro: Convenient Policy Management

Up-to-date policies are all the rage with examiners, but laws and regulations seem to change more quickly than the latest fashion trends! CU PolicyPro can help you stay on top of these changes so your policies don’t become passé!

Learn more

Compliance News

Payday Lending Rule Status Update

The CFPB's "Payday, Vehicle Title, and Certain High-Cost Installment Loans" rule has been held up by a federal court case in Texas. Although the rule's August 19, 2019, effective date has passed, the U.S. District Court for the Western District of Texas (Austin Division) stayed implementation of the rule pending the court's decision in Community Financial Services Association of America, Ltd. and Consumer Service Alliance of Texas v. Consumer Financial Protection Bureau [and its director].

On July 29, the court ordered that the parties submit briefs and responses by August 16 concerning what would be the appropriate compliance date if the court were to deny Plaintiffs’ motion for summary judgment and grant Defendants’ motion for summary judgment. Those briefs and responses have been filed. Lenders now face the risk that the court could rule soon in favor of the CFPB, allowing the rule to take effect.

The Bureau's brief argued that the rule should become effective within 30 days of the court's lifting of the stay. The trade groups argued that any order lifting the stay should set the compliance date either 445 days or 286 days from the lifting of the stay, reflecting the time left for compliance when the stay was sought (445 days before August 19, 2019) or entered (286 days before August 19, 2019).  The trade groups suggested they would appeal if the court rules in favor of the Bureau.

Source: CFPB

Streamlined CDFI Application Qualifying Round Opens Sept. 12

As announced in an NCUA Press Release, federally insured, low-income credit unions seeking a Community Development Financial Institution (CDFI) certification can apply for the National Credit Union Administration’s streamlined qualification process between Sept. 12 and Oct. 15. 
“CDFI certification is an important tool eligible credit unions can use to expand opportunity for their members and communities,” NCUA Chairman Todd M. Harper said. “Credit unions can use CDFI funding to build capacity and develop new products and services to meet the credit and savings needs of consumers, especially those of modest means. I encourage all eligible credit unions to apply.”
To qualify, low-income-designated credit unions must register in the NCUA’s CyberGrants system and complete an online Participation Form. The NCUA’s Office of Credit Union Resources and Expansion will review each credit union’s products, services, and other indicators to determine whether the credit union qualifies for the streamlined certification application.
Source: NCUA

Child Tax Credit Update: New Tool From IRS to Aid Families Receiving Paper Checks

The Internal Revenue Service has issued a press release announcing a new feature allowing any family receiving monthly Child Tax Credit payments to quickly and easily update their mailing address using the Child Tax Credit Update Portal, found exclusively on

This feature will help any family that chooses to receive their payment by paper check avoid mailing delays or having a check returned as undeliverable.

Source: IRS

New CFPB Tech Specs for Card Agreement Data Submissions

The CFPB has published [86 FR 46953] new technical specifications for certain credit card issuers to submit credit card agreements and data to the Bureau under the Truth in Lending Act and the CARD Act. Credit card issuers will make the required submissions under TILA and the CARD Act through the Bureau's “Collect” website.

These technical specifications include registration information and the URL for the website at which issuers (or their designees) can submit the required information. The new specifications became effective this week.

Source: CFPB

Treasury Proposes Amendments to Its ACH Rules

The Department of the Treasury's Bureau of the Fiscal Service has published a proposed rule [85 FR 46631] in a recent Federal Register that would amend its regulations, Federal Government Participation in the Automated Clearing House (31 CFR part 210) to address changes that Nacha has made since the publications of its 2019 Operating Rules & Guidelines, including amendments included in the 2020 and 2021 Operating Rules & Guidelines and their supplements issued on or before March 31, 2021.

The Fiscal Service's proposal would adopt Nacha's:
  • Same Day ACH dollar limit increase to $1,000,000 per transaction, effective March 18, 2022
  • differentiation of Return Reason Codes R10 and R11
  • supplemental fraud detection standards for WEB debits
  • 2021 implementation of time limits on an RDFI's ability to make a claim against an ODFI's authorization warranty
  • revised June 30, 2022, effective date of Nacha's data security requirements rule
  • clarification of the proper circumstances under which an ACH entry may be reversed
  • rules on Standing Authorizations
  • expansion of "oral authorizations" to oral authorizations received over any channel (in addition to telephone authorizations)
  • re-organization of its general authorization rules.
  • "Alternative to Proof of Authorization" rule, which allows an ODFI or Originator to agree to accept a return rather than expend time and resources needed to provide proof of authorization
  • Nacha's Written Statement of Unauthorized Debit via Electronic or Oral Methods rule
Fiscal Services proposes not to:
  • adopt Nacha's rules enforcement definition of an "egregious violation," because the enforcement provisions of Nacha's rules are inapplicable to federal agencies
  • participate in Nacha's ACH Contact Registry

Comments on the Fiscal Service's proposed rule will be accepted through October 18, 2021.
Source: Department of the Treasury

Advocacy News

NCUA Request for Information and Comment on Digital Assets, Related Technologies

The National Credit Union Administration Board set Sept. 27, 2021, as the deadline for comments on the existing and potential impact on federally insured credit unions, related entities and the NCUA resulting from activities connected to digital assets and related technologies.

Learn more

Supreme Court Ruling on Evictions Likely to Put Pressure on Some Members Over Housing

Credit unions will need to prepare for at least some members facing housing insecurity and other related issues following a Supreme Court ruling overruled the Biden administration's newest federal ban on evictions. The ruling came in response to a bid from a group of landlords to block the pandemic-related protections for renters facing eviction in most of the country.

In an unsigned opinion, and with three Democrat-appointed justices in dissent, the court said that "careful review" of the case "makes clear that the applicants are virtually certain to succeed on the merits of their argument that the CDC has exceeded its authority."

"It would be one thing if Congress had specifically authorized the action that the CDC has taken. But that has not happened," the court stated. "Instead, the CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination. It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts."

Learn more

Credit Unions Ask for Clearer Protection Under Anti-Discrimination Rule

Credit union trade groups made it clear to the U.S. Department of Housing and Urban Development (HUD) this week that they support a plan to reinstate a 2013 rule that prohibits discrimination in housing not just by what lenders say, but what they do.

CUNA and NAFCU also said the current law is adequate in ensuring that lawsuits against credit unions will fail if they are based on results that stem from statutory limits on credit union membership from field of membership restrictions.

However, they said they want the law to include safe harbor language that will make it clear that credit unions are protected from liability if the alleged discrimination is a byproduct of membership rules.

Learn more

Articles of Interest

CUNA's Advocacy Resources

WOCCU Advocacy Resources

  • Telegraph – the most recent newsletter on current advocacy issues
  • Advocate Blog – International advocacy trends and issues

Compliance Resources

Agencies Issue Guide to Help Small Banks Evaluate Fintech Relationships

The federal bank regulatory agencies released a guide intended to help small banks assess risks when considering relationships with financial technology (fintech) companies. Credit unions may find the information helpful.

Learn more

Training & Education

League Training

AUG 31 Dealing with Difficult Members: 5 Foolproof Techniques

SEPT 1 Call Report Loan Classifications & Basic Lending Schedules

SEPT 2 Dormant Accounts, Unclaimed Property & Escheatment

SEPT 8 New Accounts Series: 20 Legal Types of Accounts: Ownership, Documentation & CIP

SEPT 9 ACH Payment Reclamations & Garnishments

CUNA Introduction to Compliance eSchool Coming in October

CUNA Introduction to Compliance eSchool, to be held in three Wednesday sessions beginning Oct. 13, will provide information needed by people new to the world of credit union compliance.

“Participants will learn tips and tricks for figuring out where to start in the role of a new compliance officer, including an overview of key resources and tips on dealing with regulators,” said Jess MacLagan, instructional design manager – compliance for CUNA, and previously a credit union compliance officer.

Learn more

Key Trends in Class Action Litigation – Sept. 15 Webinar

2020 was a year of upheaval, and while some industries continue to suffer, certain areas of litigation experienced an upswing. In this webinar, you’ll gain litigation insights and hear which loss trends are impacting credit unions throughout the country including:

  • Overdraft / NSF Fee Litigation
  • Collection Letters (defective post-repossession notices)
  • Wage & Hours and FLSA
  • Foreign Transaction Fees
  • Peer-to-Peer (P2P) Fraud & Reg E

CUNA Mutual Group’s expert Claims and Risk Management panelists will share what’s going on and what you can do to minimize these and other potential disputes before they impact your organization.


Compliance Calendar

Dates to Note

  • Aug. 31, 2021: CFPB - RESPA Borrower Protections - COVID-19 Emergency
  • Sept. 6, 2021: Labor Day - Federal Holiday
  • Oct. 11, 2021: Columbus Day - Federal Holiday (also recognized: Indigenous Peoples' Day)
  • Nov. 11, 2021: Veterans Day - Federal Holiday
  • Nov. 25, 2021: Thanksgiving Day - Federal Holiday
  • Nov. 30, 2021: CFPB – Fair Debt Collections Practices (Regulation F)
Compliance Resources
League Events
Latest News

Compliance Assistance

Compliance Hotline
ext. 610 (toll-free)

Joseph "Jay" Spruill

Direct Phone: 804.343.5031

Brian Brown

Direct Phone: 804.343.5023
League Employment Law Hotline
ext. 613 (toll-free)

Dan Summerlin
ext. 613
434.237.9613 (direct)
Tom Winn
ext. 613
434.237.9613 (direct) 
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Compliance eNewsletter. A publication of the Virginia Credit Union League and InfoSight.

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