BRENTWOOD, Tenn.–There are a host of new compliance-related issues credit unions need to be monitoring, according to a new analysis.
Ncontracts has released a recap of where it said credit unions’ compliance focus needs to be. The analysis was assembled by Rafael DeLeon, who spent more than 32 years as an OCC bank examiner; Michael Berman, founder of Ncontracts and author of “The Upside of Risk: Transforming Complex Burdens into Strategic Advantages for Financial Institutions,” and Stephanie Lyon, who formerly served as senior compliance counsel at NAFCU and as a risk management specialist at GEICO FCU.
The Issues to Watch
The issues to watch, according to the company:
CFPB Submits Three Mortgage-Related Rulemakings to OMB
“The CFPB has submitted three significant rulemaking items to the Office of Management and Budget (OMB), signaling potential changes in mortgage lending and servicing regulations,” Ncontracts said. “The first targets Regulation Z’s loan originator compensation provisions, which currently prohibit dual compensation and ban pay structures based on loan terms, such as prepayment penalties. It’s unclear what changes may be proposed.
“The other two submissions address mortgage servicing provisions under Regulations X and Z,” the analysis continued. “These items will likely be released as Advance Notices of Proposed Rulemaking (ANPRs), giving institutions a chance to weigh in. Given the industry-wide impact of past servicing reforms, this is a development worth watching closely.”
CFPB Extends 1071 Compliance Deadlines
The CFPB has issued a new delay for its Section 1071 small business lending rule, pushing compliance deadlines back by about a year, Ncontracts stated.
“This update creates a unified timeline for all covered institutions, resolving confusion caused by earlier court-ordered stays that applied only to certain lenders,” according to the company. “The Bureau had previously said it wouldn’t enforce the rule against others during the legal limbo. Now, with the interim final rule in place, all institutions have new, aligned deadlines. Stay tuned — another proposed rule may be on the way.”
CFPB Clarifies When Rules are Officially Issued
“The CFPB has rescinded its 2012 procedural rule that allowed rules to be considered ‘issued’ upon website posting. Going forward, CFPB rules will only be considered issued when published in the Federal Register — unless a statute says otherwise,” Ncontracts stated. “This change removes confusion, aligns with traditional rulemaking practices, and simplifies compliance tracking. Be sure to update your monitoring procedures and calendars accordingly.”
Other Issues to Monitor
Ncontracts said credit unions should also be aware:
- Florida clarifies debt collection email rules. Florida has passed a new law confirming that debt collection emails sent between 9 p.m. and 8 a.m. do not violate state law. The rule applies only to emails — phone calls remain restricted during those hours. “If your institution collects debts from Florida consumers, consider updating your policies to reflect this change.”
- GENIUS Act passes Senate without credit card amendments. The Senate has passed the GENIUS Act — which would create the first federal regulatory framework for payment stablecoins — without controversial amendments on interchange rules or credit card interest rate caps. “Financial institutions considering stablecoin issuance should begin evaluating strategic fit, prepare for application requirements, and update compliance programs to include Bank Secrecy Act (BSA) obligations.” Ncontracts said.
- FDIC, OCC and NCUA issue CIP exemption for TIN collection. “The NCUA, FDIC, and OCC have issued a joint exemption allowing banks and credit unions under their supervision to collect a customer’s taxpayer identification number (TIN) from a third party, rather than directly from the customer, when opening accounts. The change addresses growing concerns over identity theft and data breaches, and builds on the success of a similar credit card exception. The exemption doesn’t alter the core CIP requirement to reasonably verify customer identity — and notably, it does not apply to institutions supervised by the Federal Reserve.”
