ViClarity Compliance Update

​Q2 Town Hall to feature hot topics and upcoming rules review! Plus, CFPB spring supervisory highlights features mortgage practices violations; and much more! 

The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. To read the complete articles that are linked, you will need to log in with your 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.
 
Q2 Town Hall Webinar: 3 Hot Topics + Upcoming Rules Review
Join ViClarity for our quarterly town hall webinar on June 26 beginning at 1:00 p.m. (CT) when we will explore the latest trends and challenges in fraud, cybersecurity and fair lending – three topics we are asked about frequently via our league compliance hotlines. We will share strategies to assist with fraud prevention, help you understand cybersecurity vulnerabilities, and ensure your credit union maintains adherence to fair lending regulations. We’ll also review upcoming rules and regulations from NCUA and other agencies that impact credit unions. Don’t miss this opportunity to enhance your knowledge and stay ahead of upcoming changes in an ever-evolving compliance environment. Sign up today!
 
CFPB Releases Spring 2024 Edition Highlighting Violations of Mortgage Practices
In its Spring 2024 Supervisory Highlights, the Consumer Financial Protection Bureau (CFPB) highlighted mortgage servicers that engaged in Unfair, Deceptive, Abusive Acts or Practices (UDAAP) and regulatory violations while processing payments by overcharging certain fees, failing to properly detail the fees in the periodic statements, and not making timely escrow disbursements. In particular, the report highlights that many of the violations by mortgage servicers surround the issue of loss mitigation practices. Read more on the topic here.
 
NCUA Re-Proposes Rule Addressing Incentive-Based Compensation
The National Credit Union Administration (NCUA), in conjunction with the Federal Deposit Insurance Corporation (FDIC), The Office of the Comptroller of the Currency (OCC), and the Federal Housing Finance Agency (FHFA) have re-proposed a rule addressing the prohibition on incentive-based compensation arrangements. The agencies have requested public comment, which will be due 60 days after the date of publication in the Federal Register. Learn more here.
 
CFPB Releases Report Showing Reduction in Overdraft and NSF Fees
The Consumer Financial Protection Bureau (CFPB) has released a report which shows that overdraft and nonsufficient funds (NSF) fee revenue has decreased from levels which were achieved prior to the pandemic. According to the report, overdraft and NSF fees have decreased by 50 percent, resulting in savings to consumers of $6 billion annually. The report’s analysis gave some data regarding overdraft and NSF fees collected from 2023. Read more here.
 
CFPB Report Details Issues Surrounding Credit Card Rewards Program
The Consumer Financial Protection Bureau (CFPB) has issued a new report addressing some consumer problems stemming from credit card rewards programs. In general, it concludes that as credit card rewards programs have become increasingly more complex, the number of consumer issues surrounding these types of programs has increased. Among the problems that the CFPB lists in its reports, consumers have complained that the reward offered as part of the program is devalued or denied after the terms of the program have been met. Additionally, according to the CFPB’s report, consumers who have revolving balances often pay more in interest and fees than they get back from rewards. Read more on this topic here.