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, […]
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 […]
By: Michael Mulvey mmulvey@cusolaw.com In November 2021, the NCUA expanded the lending capabilities of CUSOs. CUSOs can now engage in all types of lending permitted for federal credit unions. The NCUA recently released a letter to credit unions providing guidance on the CUSO lending rule now that the rule has been in effect for […]
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 […]
By: Jennifer Winston jwinston@cusolaw.com In Letter to Credit Unions 23-CU-01, the NCUA has outlined its supervisory priorities for 2023. The NCUA’s primary areas of supervisory focus this year will be: Interest Rate Risk: The NCUA sees the sharp rise in rates as amplifying “market risk because a credit union’s assets and liabilities do not […]
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 […]
Following up on a previous post regarding legislation that would grant the NCUA authority to regulate and examine all vendors that do business with a credit union, the House recently passed the National Defense Authorization Act including an amendment that would grant the NCUA such oversight authority over a credit union’s third-party vendors. As previously […]
Leveraging the Profits Made by CUSOs The primary advantage to using a holding company CUSO is a consolidation of CUSO investments and leveraging the profitable CUSOs to make additional CUSO investments. A federally chartered credit union may only invest up to 1% of its assets in CUSOs in the aggregate. However, NCUA defines CUSO investment […]
With summer in full swing, now is as good of a time as any to review your internal processes to see how your programs are performing measured against expectations and determining whether any updates need to be made. This post will be a high level focus looking under the hood of your third party risk […]
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 […]
