ViClarity Compliance Update

Some FAQs on home ownership counseling;
​NCUA guidance on succession planning; reclamation procedures; call reports; and much more. 

The Dakota Credit Union Association’s new dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance solutions. With their expertise in governance, risk, and compliance consulting solutions for credit unions, they can be relied on to help you with any compliance question, policy or disclosure review, or even prepare for an external
or regulatory audit. Below is the first of their bimonthly updates that will appear in the Memo going forward. To read the complete articles/answers that are linked, you will need to log in with your unique username and password. If you have questions about establishing your members-only account with ViClarity, click here for detailed instructions or contact
John Alexander in the DakCU office.
 
December FAQs
Q: When is the Homeownership Counseling Organizations Notice provided to borrowers?
A:  A notice needs to be provided no later than 3 business days after a lender receives an application, or information sufficient to complete an application. 
 
Q: What is NCUA’s guidance on the succession planning process?
A: The NCUA requires 3 main components for credit unions to establish: plan, process, and understanding. Certain elements must be included.
 
Q: What is the reclamation procedure on death notification?
A: An RDFI must immediately return any post-death benefit payments received after the RDFI becomes aware of the death or legal incapacity of a recipient (but not post-death benefit payments that the RDFI received before becoming aware of the recipient’s death).
 
To learn more about any of the above FAQs click here.
 
NCUA Penalties for Timely NCUA Form 5300 Call Reports
In a recent announcement, the National Credit Union Administration (NCUA) revealed its decision to reinstate civil money penalties for credit unions failing to submit the NCUA Form 5300 Call Report on time, effective January 1, 2024. The program was suspended due to the COVID-19 pandemic and is being reinstated to ensure accurate and up-to-date quarterly Call Report data in a timely manner. Credit unions seeking more information on filing call reports can find comprehensive resources on the NCUA website. Read more on this topic here.
 
FinCEN Extends Deadline: Beneficial Ownership Information Reports
The Financial Crimes Enforcement Network (FinCEN) has issued a final rule that extends the deadline for certain reporting companies to submit their initial Beneficial Ownership Information (BOI) reports. Specifically, reporting companies created or registered in 2024 will now have a 90-calendar-day window, starting from the date they receive actual or public notice of their creation or registration becoming effective, to file their initial reports. For questions or concerns about reporting requirements, reach out to FinCEN directly through their contact portal. Read more on this topic here.
 
CFPB Imposes $12 MM Penalty for False Mortgage Data Reporting
The CFPB has ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government, violating the long-standing federal law, the Home Mortgage Disclosure Act (HMDA). Over a period of at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants specific demographic questions, as required by HMDA, and then falsely reported that the applicants chose not to respond. The CFPB emphasizes that it is illegal to report false information to federal regulators and vows to take additional measures to ensure compliance.
 
For credit unions, this development underscores the importance of rigorous adherence to reporting regulations. Ensuring accurate and truthful reporting not only maintains compliance but also upholds the integrity of the mortgage market. As institutions committed to serving our communities, credit unions play a vital role in fostering fair lending practices. Read more on this topic and learn about key steps credit unions should take here.