Compliance Update with Amy K

​Corey Krebs is appointed to NASCUS Regulatory Board; several free learning opportunities you don’t want to miss, CFPB fraud warning, and more. 

by Amy Kleinschmit, Chief Compliance Officer

NASCUS – Congratulations to Corey Krebs
It was recently announced that Corey Krebs, North Dakota Department of Financial Institutions Assistant Commissioner, has been appointed to the National Association of State Credit Union Supervisors (NASCUS) Regulatory Board for a one-year term.

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.
 
Free Learning Opportunities You Don’t Want to Miss
September 14 - How to Get a Winning Grant/Loan
The National Credit Union Administration (NCUA) will be providing information to low-income credit unions on applying for Community Development Revolving Loan Fund grants and loans. Online registration for this webinar, “How to Get a Winning Grant/Loan,” is now open. Staff from the NCUA’s grants team will cover: CDRLF eligibility requirements; The components of a grant or loan application; Compliance requirements; and Examples of successful grant and loan applications.

September 15 – National Preparedness Month: How Credit Unions and their Members Can Prepare and Remain Resilient in the Face of Climate Related Disasters

The NCUA will be hosting a free one-hour with the Federal Emergency Management Agency (FEMA) on how credit unions and their members can prepare for, and remain resilient in the face of, climate-related disasters.
The webinar will explore challenges faced by credit unions serving communities impacted by natural disasters, highlight the ways credit unions support equity and financial inclusion in the context of disaster preparedness and financial resilience, and amplify best practices and resources for credit unions and their members. Please register for this event here.

September 15 - Interest Rate Risk Supervisory Framework Updates
The NCUA will also be hosting a webinar to provide credit unions information regarding updates to the NCUA’s Interest Rate Risk Supervisory Framework. Chairman Todd M. Harper will provide opening remarks and staff from the Office of Examination and Insurance will explain the updates and respond to questions from attendees.
Registration for this webinar can be found here.

September 28 - Decoding Recent Overdraft Criticism and Market Shifts
Legislators have recently turned up the heat on excessive fees and undisclosed overdraft program procedures. As inflation impacts the country, political agendas can create uncertainty regarding important financial service options. In this session, JMFA’s EVP of Compliance Review, Cheryl Lawson, will share her expertise and insight on the recent topics making news headlines. She will address some of the continuous elements proposed by lawmakers to impose changes to regulations on overdraft programs and why previous attempts have failed. Plus, she will address specific areas that can raise red flags for overdraft regulators—and potential interest from lawyers pursuing class-action lawsuits. Please register for this event here.
 
Letter to Credit Unions - Interest Rate Risk
The NCUA issued Letter to Credit Unions 22-CU-09 recently concerning updates to its Interest Rate Risk supervisory guidance. The letter revises the risk management expectations for credit unions over $50 million in assets. Credit unions should review this updated guidance and take steps to mitigate risk as needed.

As highlighted in the Letter, changes include:

• Revising the risk classifications by eliminating the extreme risk classification and modifying the high risk classification;
• Clarifying when a Document of Resolution (DOR) to address IRR is warranted, including removing any presumed need for a DOR based on an IRR supervisory risk classification and related need for a credit union to develop a de-risking plan;
• Providing examiners more flexibility in assigning IRR supervisory risk ratings; and
• Revising examination procedures to incorporate updated review steps when assessing how a credit union’s management of IRR is adapting to changes in the economic and interest rate environment.

 
CFPB Warns of Fraud
The Consumer Financial Protection Bureau (CFPB) recently issued an alert – Beware of scammers pretending to be from the CFPB.

The Alert explains that the CFPB has “confirmed that scammers are using CFPB employee’s names and imagery to try and steal your money. We’ve heard from people, specifically older adults, who were defrauded thousands of dollars from scammers pretending to be with the CFPB. If someone contacts you and says you’ve won a class-action lawsuit in a foreign country, or can receive other large, unexpected amounts of money, but must use the CFPB’s assistance to claim the funds, they are lying.”

These scams often have multiple parts:

• Individual receives a call or email notifying them of an opportunity to participate in a class-action lawsuit, that they’ve won a lawsuit, or that they’re owed money they didn’t expect.
• One of these messages may come from an imposter claiming to be a CFPB or other U.S. Government agency official confirming that the individual is entitled to a payout.
• Later, they’re told that to collect the money, they must first pay the taxes or some other large upfront fee. The fraudster may continue to find “reasons” for the individual to pay more fees or taxes. It is all part of the scam.

Call the CFPB’s consumer call center at (855) 411-2372 between 8 a.m. and 8 p.m. ET, Monday through Friday, to confirm whether a contact claiming to be from the CFPB is legit or not.
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As always, DakCU members may contact Amy Kleinschmit with any compliance related questions.

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