Regulatory Update 2-10-2020, Weekly Regulatory Advocacy Report

by Tim Pierce and David Hawkins | Feb 10, 2020

 

Do not Forget to Change the NCUA address on Your Adverse Action Notices
With the change in NCUA’s regional office from Atlanta to Austin, federal credit unions need to make the appropriate address changes referenced on adverse action notices. Regulation B, Equal Credit Opportunity Act, requires that adverse action notices to disclose to the federal agency that administers compliance with this law concerning Indiana federal credit unions.  Indiana federal credit unions must state the name and address of NCUA. So, with supervision of Indiana federal credit unions moving from Atlanta to Austin, the appropriate changes need to be on the adverse action form. The address for NCUA’s Southern Regional Office is 4807 Spicewood Springs Road, Suite 5200, Austin, TX 78759-8490.
 
CFPB Sends Out TRID Assessment Survey
The CFPB is assessing the TILA-RESPA Integrated Disclosures (TRID) Rule. As part of its assessment, the CFPB has issued surveys for loan originators, loan officers, and closing companies. This is a voluntary survey; however, it will assist the CFPB in understanding the effects of the rule and the responses from community-based lenders will provide the CFPB with a better picture of how those entities were affected by the TRID Rule.
 
The survey’s response deadline is March 6, 2020.
 
CFPB Announces Policy Regarding Prohibition on Abusive Acts or Practices
The CFPB has issued a policy statement to provide clarification on how it intends to apply “abusiveness” in order to promote compliance and certainty. Commencing immediately, the Bureau intends to apply the following principles during supervision and enforcement work by:
 
  • Focusing on citing or challenging conduct as abusive in supervision and enforcement matters only when the harm to consumers outweighs the benefit.
  • Generally avoiding "dual pleading" of abusiveness and unfairness or deception violations arising from all or nearly all the same facts and alleging "stand alone" abusiveness violations that demonstrate clearly the nexus between cited facts and the Bureau’s legal analysis.
  • Seeking monetary relief for abusiveness only when there has been a lack of a good-faith effort to comply with the law, except the Bureau will continue to seek restitution for injured consumers regardless of whether a company acted in good faith or bad faith.
Pending Regulatory Comment Call
Upcoming Effective Dates
Regulatory Update is a compliance resource delivered by email only. All Regulatory Updates are available on the League's website. If you have any questions, please don't hesitate to contact Joe Guilfoy, Tim Pierce or Dave Hawkins. If there is someone else at your credit union who should receive these updates, or if you would like to be removed from our list, please send a reply e-mail.