Legislative & Regulatory Update

​DakCU signs onto letter urging FHFA to reconsider proposed changes; CFPB proposed rules to aid borrowers; and meet your ViClarity team members! 

John Alexander

​by John Alexander, Director of Legislative & Regulatory Affairs
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Credit Unions Urge FHFA to Reconsider Proposed FHLB Mission Changes
The Federal Housing Finance Agency (FHFA) recently proposed changes to the Federal Home Loan Bank's (FHLB) mission statement. In response, America's Credit Unions, along with the Dakota Credit Union Association and other state leagues, signed a letter urging the FHFA to reconsider these changes and look at other policy options.

Credit unions depend on the FHLB's ability to adapt to changing economic conditions and community needs.
The proposed changes might limit credit unions' access to funds, restrict their ability to offer new financial products, and increase costs and administrative work.

The letter outlined several key points:

1. The FHLB's mission has already been clearly defined by Congress in various laws.
2. The proposed incentive program could mainly benefit large lenders, making it harder for small community lenders to compete.
3. Support for a legislative amendment to redefine “community financial institution” to include credit unions, which would allow more credit unions to join the FHLB system.

We hope the FHFA will take these concerns into account and find a better solution that supports all lenders, big and small. Read the entire letter here.

CFPB’s New Mortgage Servicer Rules to Aid Borrowers and Prevent Foreclosures
Last Wednesday, the Consumer Financial Protection Bureau (CFPB) proposed new rules designed to help mortgage servicers provide better assistance to borrowers facing financial difficulties, potentially preventing foreclosure. These changes aim to simplify the assistance process by reducing paperwork, improving communication, and ensuring that critical information is accessible in multiple languages.
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The proposal includes several key changes:

• Prioritizing Assistance: Servicers would be required to attempt to help borrowers first, before initiating foreclosure, when assistance is requested.
• Flexibility in Review: Servicers would have more flexibility to evaluate each option available to borrowers individually.
• Tailored Notices: Servicers would need to provide more personalized notices to borrowers.
• Language Accessibility: Notices must be available in both English and Spanish, and oral interpretation services should be provided during telephone calls with borrowers.

Notably, small servicers—those managing 5,000 or fewer mortgages, all of which they or their affiliates own or originated—would be exempt from these requirements.
Comments on the proposal are due by September 9.
 
Meet Your ViClarity Compliance Support Team
The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. In partnership with DakCU, ViClarity shares expertise and guidance through the League Compliance Hotline for all association members. The ViClarity Compliance Support team is staffed by subject matter experts with many years of experience working in and with credit unions. When you attend a quarterly compliance webinar, read compliance articles in The Memo, or reach out to the Hotline via email or phone, these are the knowledgeable, friendly experts behind those resources: 

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Jovilyn Herrick: As Senior Director of Client Solutions, Jovi leads and supports ViClarity’s Compliance Consulting and League Compliance Support teams. She assists affiliated credit union leagues like DakCU and other credit union clients with their compliance needs and requests. Jovi has more than 25 years of credit union experience and expertise in compliance, risk, operations, marketing, and management roles. Prior to joining ViClarity, she worked in a variety of leadership positions in several credit unions in California. She holds both CUNA's Credit Union Compliance Expert (CUCE) and NAFCU’s Certified Compliance Officer (NCCO) designations.

Crystal Streeper: Crystal is an experienced credit union professional with over 16 years of experience in the financial industry. She has worked in various roles at credit unions throughout California. Her areas of expertise include lending, compliance, training, and education. As a Senior Compliance Officer and Training Coordinator at ViClarity, she provides a wide array of assistance and training to affiliated leagues and credit union clients nationwide. Crystal holds both CUCE and NCCO compliance certifications.

Tiffany Villagomez: Tiffany is a ViClarity Compliance Officer with more than 10 years of experience. She has held many roles within credit unions, from frontline teller to executive administrative assistant to compliance specialist and compliance officer. Tiffany also supported the credit union movement by serving as a Chapter Board Member and is a Young Professional alum for the league in Texas. She has extensive knowledge in board governance, operations, BSA and regulatory compliance. Tiffany holds CUCE and NBSO compliance certifications.

Sabrina Ducksworth-Brown: Sabrina started her journey in the credit union industry over 10 years ago as a call center representative and has held several positions in the regulatory compliance space. Her areas of expertise are operations and BSA compliance. In her current role as a Compliance Officer with ViClarity, Sabrina provides regulatory guidance, support and training on a state and federal level for credit union clients throughout the country. She holds a CUCE compliance certification.

Kayley Grant: Kayley is a Regulatory Compliance Officer at ViClarity. With nearly a decade of experience in the world of compliance, she currently assists with compliance inquiries, providing credit unions with state and regulatory guidance and training. Kayley also advocates for credit unions on regulatory matters and assists in expressing the credit union perspective to regulators. Kayley received her bachelor’s degree from Wartburg College and her law degree from Drake University.

As you can see, with a wide range of expertise, education, and experience, ViClarity staff is ready to assist you with all your compliance needs!

​If you have any questions about this benefit of membership, don’t hesitate to contact me.