The NAFCU Journal May - June 2019 - 49

Upcoming Compliance Deadlines
July 1, 2019

This final rule implements the flood insurance provisions of the Bigger-Waters Flood Insurance Reform
Act of 2012 by requiring credit unions to accept policies that meet the statutory definition of "private
flood insurance." It includes a compliance aid to help credit unions determine whether a policy meets
the definition of private flood insurance. In general, a credit union may determine a policy meets the
definition of private flood insurance without further review if this endorsement is included as part of
the policy: "This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7)
and the corresponding regulation." The final rule also permits a credit union to exercise its discretion to
accept flood insurance policies issued by private insurers and plans issued by mutual aid societies
that do not meet the statutory definition of private flood insurance, provided that certain conditions
are met.

Jan. 1, 2020

The bureau issued a final rule making several substantive revisions to Regulation C's reporting
requirements under the Home Mortgage Disclosure Act (HMDA). With the changes, the class of covered
transactions now includes most dwelling-secured open-end and closed-end lending, effectively
mandating reporting on home equity lines of credit (HELOCs). The final rule also expands the HMDA
data set, requiring credit unions to report on a total of roughly 38 data points. The modified institutional
coverage test will be implemented under a "phased-in" schedule.
Credit unions that reported at least 60,000 covered loans and applications, combined, in the preceding
calendar year will be required to conduct quarterly data submissions.
Download the latest NAFCU Compliance Calendar at www.nafcu.org/compliancecalendar.

Inherent Risk Levels

Cybersecurity Maturity Level
for Each Domain

Least
Innovative

Minimal

Moderate

Significant

Most

Elevated Investment

Advanced
Intermediate
Evolving
Baseline

Cybersecurity maturity is measured at
one of five levels for each domain. The
lowest is "baseline," which essentially
represents meeting the minimum
expectations set forth in regulatory
guidance, followed by "evolving,"
"intermediate," "advanced" and "innovative." The idea is for the credit union's
cybersecurity maturity to be aligned
THE NAFCU JOURNAL  MAY-JUNE 2019

O

l
a
m
i
t
p
Underinvestment

with its inherent risk. NCUA has
indicated that the ACET will focus on
ensuring whether credit unions meet
the "baseline" across these domains.
The matrix above, which was presented
to the NCUA Board in 2016, indicates
the agency's expectations for a credit
union's alignment between inherent risk
and cybersecurity maturity.

Tools such as the FFIEC IT Handbook
and the FFIEC's CAT can be useful for
identifying the information a credit
union needs to be prepared for cyber
exams. NAFCU members may also
find helpful our fillable workbook
version of the CAT.
Cybersecurity exam preparation
can be time-consuming and technical,
but NCUA has indicated that it is
and will remain a priority for the
agency. Collecting necessary materials,
predetermining how to provide information, knowing the credit union's
weaknesses and reviewing training
and education can help make these
exams shorter and less disruptive
for the credit union. Taking steps
to get ahead of the curve can help
ensure this portion of NCUA exams
goes smoothly.
Brandy Bruyere is vice president of
regulatory compliance for NAFCU.
49


http://www.nafcu.org/compliancecalendar

The NAFCU Journal May - June 2019

Table of Contents for the Digital Edition of The NAFCU Journal May - June 2019

The NAFCU Journal May - June 2019
Contents
Conferences
From the Chair
Washington and Industry Briefs
The Bottom Line
Welcome, New Members
Knowledge Is Power Credit unions leverage data and analytics for strategic business growth.
Lowering the High Cost of Internal Fraud Policies, culture and training work together to improve fraud detection and prevention.
2019 Annual Conference Exhibitor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal May - June 2019 - The NAFCU Journal May - June 2019
The NAFCU Journal May - June 2019 - Cover2
The NAFCU Journal May - June 2019 - Contents
The NAFCU Journal May - June 2019 - 2
The NAFCU Journal May - June 2019 - Conferences
The NAFCU Journal May - June 2019 - From the Chair
The NAFCU Journal May - June 2019 - 5
The NAFCU Journal May - June 2019 - Washington and Industry Briefs
The NAFCU Journal May - June 2019 - 7
The NAFCU Journal May - June 2019 - The Bottom Line
The NAFCU Journal May - June 2019 - 9
The NAFCU Journal May - June 2019 - 10
The NAFCU Journal May - June 2019 - 11
The NAFCU Journal May - June 2019 - Welcome, New Members
The NAFCU Journal May - June 2019 - 13
The NAFCU Journal May - June 2019 - 14
The NAFCU Journal May - June 2019 - 15
The NAFCU Journal May - June 2019 - 16
The NAFCU Journal May - June 2019 - 17
The NAFCU Journal May - June 2019 - Knowledge Is Power Credit unions leverage data and analytics for strategic business growth.
The NAFCU Journal May - June 2019 - 19
The NAFCU Journal May - June 2019 - 20
The NAFCU Journal May - June 2019 - 21
The NAFCU Journal May - June 2019 - 22
The NAFCU Journal May - June 2019 - 23
The NAFCU Journal May - June 2019 - 24
The NAFCU Journal May - June 2019 - 25
The NAFCU Journal May - June 2019 - Lowering the High Cost of Internal Fraud Policies, culture and training work together to improve fraud detection and prevention.
The NAFCU Journal May - June 2019 - 27
The NAFCU Journal May - June 2019 - 28
The NAFCU Journal May - June 2019 - 29
The NAFCU Journal May - June 2019 - 30
The NAFCU Journal May - June 2019 - 31
The NAFCU Journal May - June 2019 - 32
The NAFCU Journal May - June 2019 - 33
The NAFCU Journal May - June 2019 - 34
The NAFCU Journal May - June 2019 - 2019 Annual Conference Exhibitor Directory
The NAFCU Journal May - June 2019 - 36
The NAFCU Journal May - June 2019 - 37
The NAFCU Journal May - June 2019 - 38
The NAFCU Journal May - June 2019 - 39
The NAFCU Journal May - June 2019 - 40
The NAFCU Journal May - June 2019 - 41
The NAFCU Journal May - June 2019 - Executive Spotlight
The NAFCU Journal May - June 2019 - 43
The NAFCU Journal May - June 2019 - 44
The NAFCU Journal May - June 2019 - 45
The NAFCU Journal May - June 2019 - Management Insight
The NAFCU Journal May - June 2019 - 47
The NAFCU Journal May - June 2019 - Compliance Central
The NAFCU Journal May - June 2019 - 49
The NAFCU Journal May - June 2019 - Inside NAFCU Services
The NAFCU Journal May - June 2019 - 51
The NAFCU Journal May - June 2019 - From the President’s Desk
The NAFCU Journal May - June 2019 - Cover3
The NAFCU Journal May - June 2019 - Cover4
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