|CFPB Proposed Rulemaking Regarding Small Business Data Collection
Recently, the CBPB issued a proposed rule that would impose significant new data collection and reporting requirements, similar to the Home Mortgage Disclosure Act, upon credit union lenders in connection with credit applications made by women- or minority-owned businesses as well as small businesses. The proposed rulemaking will implement changes to the ECOA/Regulation B through Section 1071 of the Dodd-Frank Act, and the requirements will impose significant regulatory and operational challenges, which, once implemented, will likely result in more fair lending enforcement actions.
|NCUA Issues Final Rule Amending Part 701 and Shared Facility Requirements
Recently, the NCUA adopted a final rule amending its chartering and field of membership (FOM) rules to modernize requirements related to service facilities for multiple common bond federal credit unions. The final rule amends 12 CFR Part 701, Appendix B, for service facilities to include shared branches, shared ATMs or shared electronic facilities for multiple common-bond federal credit unions. The final rule provides that shared locations are service facilities for purposes of multiple-common-bond federal credit union additions of groups, regardless of whether the credit union has an ownership interest in the shared branching network providing services. However, the final rule retains the exclusion of ATMs from the definition of service facility for additions of underserved areas. While an ATM does not meet that requirement, certain electronic facilities offering the required services, including a video teller machine, still does meet that requirement. The final rule will become effective on December 27, 2021.
|CFPB Issues Final Rule Amending Appendix to Regulation V/FCRA to Establish Maximum Allowable Charge for Certain Disclosures for 2022 Last week, the CFPB issued a final rule amending Appendix O for Regulation V, which implements the FCRA, to establish the maximum allowable charge for the 2022 calendar year. Each year, the CFPB must calculate the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency (CRA) to a consumer under Section 609. The maximum allowable charge will be $13.50 for 2022, an increase of fifty cents from 2021. The effective date will be January 1, 2022.|
|Compliance Note: Advertising and Social Media
Even though most credit unions use social media to advertise, some may have not yet completely made that transition, so, occasionally, we will receive a compliance question social related to social media advertising. One resource that is very helpful is the FFIEC’s Consumer Compliance Risk Management Guidance, which was published in 2013. The Guidance is intended to help credit unions understand the applicability of existing requirements and supervisory expectations associated with all types of consumer and customer communications, no matter the medium. Social media can be distinguished from other online media in that the communication tends to be more interactive. Thus, the Guidance applies to interactive online communications accessed through text, images, audio, and/or video, such as Facebook, Google Plus, Twitter, forums, customer review web sites and bulletin boards, virtual worlds, social games. Since social media is dynamic and continually changing, the list is not exhaustive and evolves with technology and electronic media. The Guidance applies to all credit union products advertised through social media, including marketing, providing incentives, facilitating applications for new accounts, inviting feedback from the public, and receiving and responding to complaints, or providing loan pricing. Messages sent via email or text, standing alone and an employee’s personal social media use are not subject to the Guidance.