News/Articles
articles submitted by:
Jennifer Winston
Quarterly Update – 2nd Qtr 2024
Anyone else find it hard to believe July is in the rearview mirror!? With 2024 flying by, regulators have been keeping busy, so it’s a good time to recap the last few months. As you all know, in May, the Supreme Court ruled that the funding of the CFPB is constitutional. Within days of that ruling, […]
Compliance in Marketing, Advertising and Social Media
Intro: 0:00-1:20 Advertising Rules and Regulations: 1:20-7:15 Social Media Platform Rules: 7:15-34:35 Advertising/Social Media Best Practices: 34:35-56:46
FCU Bylaw Amendments
FCU Bylaw Amendments will be required for updating member expulsion policy. This summer, the NCUA adopted a final rule permitting a federal credit union (“FCU”) to expel a member for cause by a two-thirds vote of the FCU’s board of directors. The NCUA was required to develop a policy under which a member could be […]
Financial Innovation – Loan Participation and Eligible Obligations Webinar
The NCUA’s new Financial Innovation Rule offers credit unions new and exciting lending opportunities. However, with these new and exciting opportunities come more responsibility on credit unions to reassess, strengthen and update their loan purchasing and lending policies and procedures. This webinar goes into detail about what changes were made to the NCUA’s loan participation […]
Third Party Relationships
Third party relationships can present great opportunities to credit unions to meet their strategic goals and to expand member services in an increasingly competitive marketplace. However, these opportunities must be properly evaluated, with risks assessed and adequately mitigated. This webinar reviews the NCUA’s supervisory guidance as to how credit unions should evaluate their third party […]
Negative Option Marketing Practices
By: Jennifer Winston Jwinston@cusolaw.com Last month, the CFPB released Consumer Financial Protection Circular 2023-01 emphasizing unlawful negative option marketing practices. The CFPB has stated that engaging in negative option marketing practices violate the Consumer Financial Protection Act’s (CFPA) prohibition on unfair, deceptive, or abusive acts or practices (UDAAP). “Negative option” refers to either a term […]
CFPB – Reasonable Investigations of Consumer Reporting Disputes
By: Jennifer Winston jwinston@cusolaw.com The Consumer Financial Protection Bureau (CFPB) has recently released another Circular addressing reasonable investigations of consumer reporting disputes. The CFPB is issuing this Circular to emphasize that certain practices involving the failure to conduct a reasonable investigation of disputes can violate the Fair Credit Reporting Act (FCRA). In Circular 2022-07, […]
Virtual Meetings – Emergency Exception
By: Jennifer Winston jwinston@cusolaw.com There has been some uncertainty whether federal credit unions could continue to hold completely virtual annual meetings in 2023 under the emergency exception bylaw announced in 2020. We now know that the answer is NO. In a Letter to Credit Unions issued this week, the NCUA has announced the expiration […]
Federal Credit Union Act Amendment – Expelling Members
By: Jennifer Winston jwinston@cusolaw.com On March 15, 2022, Congress enacted the Credit Union Governance Modernization Act of 2022 (CUGMA). The CUGMA amended the Federal Credit Union Act to allow FCUs to expel members engaging in abusive, illegal, or violent behavior with a two-thirds vote of the FCU’s Board of Directors in accordance with a policy […]
UDAAP Violations Over Data Security
The CFPB has published a Consumer Financial Protection Circular (Circular) (2022-04) that makes clear insufficient data protection or security for sensitive consumer information may violate the prohibition on unfair acts or practices under the Consumer Financial Protection Act (CFPA). This Circular does not have any impact on federal laws that currently govern data security for […]
CFPB Releases Circular on Adverse Action Notification Requirements When Using Complex Algorithms for Credit Decisions
If you attended our NACUSO presentation this spring, you heard me discuss how the Consumer Financial Protection Bureau (CFPB) has increased their focus on rooting out discrimination and discriminatory practices. CFPB Director Chopra has said that he believes the growing use of algorithms could raise issues of both overt and unintended discriminatory practices. We have […]
CFPB Expands UDAAP to Include Discrimination in All Areas of Consumer Finance
With a change in administrations, we often see changes from a regulatory perspective. One area receiving attention from the current administration are targeted efforts at protecting “protected classes” and serving the underserved, for example the NCUA’s recent letter reminding credit unions about prohibited acts under the Equal Credit Opportunity Act (ECOA). This week, the Consumer […]
Letter to Credit Unions on ECOA
Last month, the NCUA issued a letter to credit unions 22-CU-04 (“Letter”) highlighting prohibited practices under the Equal Credit Opportunity Act (ECOA). The NCUA prepared this Letter as a general refresher of the nondiscrimination requirements found in the ECOA and to signal fair lending risk areas that credit unions should be aware of. The Letter […]
Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus
The NCUA has released an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. In the statement, the agencies are encouraging financial institutions to work with borrowers affected by COVID-19 and provide additional information regarding loan modifications. Agencies are encouraging financial institutions to offer prudent loan modification […]
Regulatory Guidance Related to COVID-19
NCUA This week, the NCUA has issued a Letter to Credit Unions “NCUA Actions related to COVID-19” (Letter No: 20-CU-02). This NCUA Letter also contains FAQs regarding COVID-19, NCUA and credit union operations. These FAQs cover impacts to, and flexibility for, annual meetings and elections; FCU monthly board meetings; restrictions on branch access and branch […]
At NACUSO Annual, Compliance Quartet Highlights Hot-Button Issues
Regardless of credit union leaders’ politics, one CU advisor says from a compliance perspective “there have not been a lot of negatives” since President Trump took office in early 2017 . . . Please click here to read more. [Subscription may be required]. This article, written by Michael Bartlett, was originally published in the […]
The New HMDA Rule – What you Need to Know
Let us read the hundreds of pages of final rule so you don’t have to. This presentation will provide an overview of the new HMDA rule and will discuss aspects of the rule that apply specifically to mortgage CUSOs and the credit unions that work with them. The New HMDA Rule – What you Need […]
Regulatory Developments & CFPB Update
This webinar focused on recent regulatory and legal trends, supervisory highlights, and updates on recent enforcement actions to help credit unions and CUSOs be prepared for the upcoming year. Regulatory Developments and CFPB Update from Messick & Lauer on Vimeo.
The Importance of Data Breach Preparation
Data breaches and cybersecurity incidents happen every day, and credit unions need to be considering what to do when – not if – they are attacked. Please click here to read more. This article is from the October 19, 2016 issue of Credit Union Times Magazine. [Subscription may be required]. Jennifer Winston is an Associate […]
Cybersecurity and Data Breaches – How to Prepare, Protect and Respond
Cybersecurity and Data Breaches – How to Prepare, Protect, and Respond from Messick & Lauer on Vimeo.
Military Lending Act Changes
The Military Lending Act (MLA) has traditionally applied to three (3) types of loan products: payday loans, vehicle title loans, and refund anticipation loans. Under the Final Rule, beginning October 3, 2016, the MLA will apply to products generally covered by the Truth in Lending Act and Regulation Z, including deposit advance loans, installment loans, […]
Overtime Exemption Rule Changes
The Department of Labor (“DOL”) has released its final rule that is intended to provide stronger overtime protection and clarity to both workers and employers. Read the Final Rule here. This general summary email is the first in a series our office will publish on the new overtime rule. To determine if a white collar […]
RESPA Compliance and Marketing Services Agreements
Back in October, 2015, the CFPB issued a Compliance Bulletin to remind participants in the mortgage industry of the prohibition on kickbacks and referral fees under the Real Estate Settlement Procedures Act (RESPA) and to describe the substantial risks posed by entering into Marketing Services Agreements (MSAs). The link to the Bulletin can be found […]
CFPB Expands Definition of Small Creditor and Rural Areas
The CFPB has issued a final rule that revises the definitions of “small creditor” and “rural areas” under Regulation Z of the Truth in Lending Act (TILA). The final rule is effective January 1, 2016. The CFPB created special small creditor provisions with regard to certain Regulation Z requirements. The revised definitions will affect the […]
CFPB Provides Guidance on Using Social Security Disability Income in Mortgage Lending
On November 18, 2014, the CFPB issued a compliance bulletin regarding Social Security Disability Income Verification. The Bulletin was issued to remind creditors of their obligations under the Equal Credit Opportunity Act (ECOA) and Regulation B, with respect to consideration of public assistance income, and to highlight standards and guidelines regarding verification of Social Security […]
Lessons Learned from CFPB Enforcement Actions
On September 25, 2014, the CFPB entered into a Consent Order with a Michigan title insurance agency to settle charges that the title agency entered into certain Marketing Services Agreements (“MSAs”) in violation of the Real Estate Settlement Procedures Act. This Consent Order provides three valuable takeaways for parties that have entered into MSAs with […]
Pennsylvania Powers of Attorney Update
Pennsylvania has enacted broad changes to the laws governing Powers of Attorneys (“POA”) for financial and property transactions. Below is a brief overview of some of the changes effective January 1, 2015. For POAs executed on or after January 1, 2015: A POA may be signed by another person on behalf of the principal only […]
Annual Privacy Notices May be Posted Online Under Certain Circumstances
Originally posted November 12, 2014 The CFPB has amended Regulation P, which requires, among other things, that financial institutions provide an annual disclosure of their privacy policies to their customers. So long as certain requirements are met, the amendment allows annual disclosures to be posted online, saving your Credit Union or CUSO time and money. […]