ViClarity Compliance Update

Join next week’s webinar on NCUA supervisory priorities; CFPB finalizes rule limiting credit card fees; Amicus brief on unlawful mortgage fees, and 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/answers 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.

Breaking Down NCUA's 2024 Supervisory Priorities
NCUA has released its 2024 Supervisory Priorities and ViClarity's Compliance Officer Sabrina Ducksworth-Brown is excited to unpack the regulator's expectations with your credit union! Join our Q1 town hall webinar on Wednesday, March 20, at 1:00 p.m. CT to discuss key focus areas and learn helpful tips to get you ready for a successful year. Register here.
 
CFPB Finalizes Rule Limiting Credit Card Fees
On March 5, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule which decreases the amount of late fees that can be charged by large credit card issuers. The CFPB estimates that, once the rule goes into effect, American families will save more than $10 billion in late fees annually.
 
The final rule applies to large credit card issuers which are defined as credit card issuers with more than one million open accounts. These large credit card issuers account for 95% of the accounts with outstanding credit card balances. Additionally, large credit card issuers tend to charge close to the maximum allowable late fee. Read more on the topic here.
 
FinCEN Publishes List of Jurisdictions
The Financial Crimes Enforcement Network (FinCEN) is informing financial institutions that the Financial Action Task Force (FATF) has issued a public statement restating that Russia’s continued war with Ukraine runs contrary to FATF principles and therefore, Russia’s suspension will continue. Read more.
 
CFPB and FTC Issues Amicus Brief on Unlawful Mortgage Fees
The Consumer Financial Protection Bureau (CFPB) has taken a proactive stance to address the surge in unlawful fees within the mortgage market, directly impacting consumers' mortgage-related costs. On February 27, 2024, the CFPB published a detailed article outlining this issue and shedding light on their commitment to safeguarding consumers from unfair practices.
 
The CFPB highlighted a concerning trend of increasing unlawful fees within the mortgage market, leading to elevated costs for consumers. The rise in fees prompted the CFPB to take decisive action to protect consumers from unjust financial burdens.

For credit unions and their members, this legal development signifies a positive stride towards fair and transparent mortgage practices. As member-focused financial institutions, credit unions are committed to ethical financial services, and this ruling aligns with their principles. Credit union members can expect increased protection from potentially exploitative fees, fostering a more equitable mortgage landscape. Read the full article here.

FFIEC Issues Statement on Valuation: Promoting Fairness in Residential Property Appraisals
Recently, the Federal Financial Institutions Examination Council (FFIEC) released a comprehensive statement of principles aimed at addressing valuation discrimination and bias within residential property appraisal practices. The statement released is intended to guide member entities in their consumer compliance and safety and soundness examinations, ensuring a thorough assessment of risk management practices.
 
As financial institutions navigate the evolving landscape of compliance and risk management, the FFIEC's statement provides valuable insights into the expectations and considerations surrounding residential property valuations. By incorporating these principles, member entities can contribute to a more robust and fair valuation framework, aligning with the FFIEC's commitment to fostering a sound financial system. More on this topic here.