Throughout the year, League staff research regulatory compliance questions posed by member credit unions and disseminate the answers. Educational sessions are held periodically to reinforce information distributed through InfoSight and Compblog Updates, as well as other written information.
CFPB Oks Online Privacy Notices
A rule allowing financial institutions that meet certain requirements to post annual privacy notices online has been finalized by the Consumer Financial Protection Bureau (CFPB).
The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to send annual privacy notices to customers, describing whether and how it shares consumers’ nonpublic personal information. If the institution does share this information, it must notify consumers of their right to opt out and inform them how to do so.
The new rule applies to all financial institutions within the CFPB’s jurisdiction under the GLBA. Institutions that choose to rely on this new method of delivering privacy notices will be required to use the model disclosure form developed by federal regulatory agencies in 2009.
Under the CFPB’s new rule, requirements that allow financial institutions to post privacy notice online include:
If an institution chooses not to use the new disclosure method, it will need to continue to deliver annual privacy notices to its customers using other delivery methods. (CUNA News Now)
NCUA to Publish Vendor List
The National Credit Unions Administration’s Office of Small Credit Union Initiatives will add a list of credit union-recommended vendors to its services.
“We’re piloting this service to help you generate time- and cost-efficient leads for delivering member services,” the agency wrote in a newsletter posting about the new service. “Through this service credit unions can obtain contact information on registered vendors that serve credit unions.”
The list will be “unbiased” the agency said, and will be free to both users and vendors. NCUA Board Chairman Debbie Matz said she would support seeking authority for the NCUA to regulate credit union vendors. (CU Times)
Fed Regulators Approve Final QRM Rule
Federal regulators have approved a final qualified residential mortgage (QRM) rule, which requires investment banks to hold at least 5% of a loan’s risk on their books when securitizing loans unless the loans meet the definition of a QRM. The rule also more closely aligns the definition of QRM with the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage (QM) definition, an alignment for which the Credit Union National Association strongly advocated.
CUNA supported aligning the definition of a QRM more closely with the definition of a QM in commenting on the proposal last year. However, CUNA does not support the 43% debt-to-income ratio a borrower must meet for a QM. The rule also states that regulators will review the QRM standards in four years. (CUNA News Now)
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