The NAFCU Journal May - June 2017 - 48

COMPLIANCE CENTRAL

Preparing for HMDA: Do You
Have a Legal Entity Identifier?
By Brandy Bruyere
Who can register the credit union?
You must currently be an employee of
the credit union you are registering and
be authorized by the credit union to
register for an LEI. Alternatively, credit
unions may use a third party through
an assisted registration process. The
person registering the credit union
will need a user account, which can be
created at www.gmeiutility.org/login.
jsp?action=register.

A

s credit unions approach the
Jan. 1, 2018, implementation
date for new Home Mortgage
Disclosure Act requirements,
getting all the pieces in place is a challenge. For any loan on which the credit
union takes "final action" on or after Jan.
1, credit unions that report will be subject
to the many new data points in revised
HMDA. One of these new data points will
be the "universal loan identifier," which
will specifically identify a covered loan or
application with a unique number consisting of several components. One component refers to the credit union itself -
the "Legal Entity Identifier," or LEI. Credit
unions subject to HMDA reporting that
do not already have an LEI will need one
to be in compliance. Revised Section
1003.4(a)(1)(i) states that the ULI must
"begin with the [credit union's] Legal
Entity Identifier (LEI) ... issued by a utility endorsed by the LEI Regulatory Oversight Committee or a utility endorsed ...
by the Global LEI Foundation. ..." But
what exactly is an LEI?
According to the LEI Regulatory Oversight Committee (LEI ROC), an LEI is
a 20-character alphanumeric code that
48

uniquely identifies legal entities that
engage in financial transactions. The LEI
does not exist just for HMDA, but is used
for other purposes as well, such as certain
kinds of investment trading, including
derivatives. The movement toward using
LEIs stemmed from the financial crisis and
is addressed in the International Organization for Standardization's ISO 17442:2012.
LEIs are issued by "local operating units"
endorsed by the LEI ROC. In other words,
the Consumer Financial Protection Bureau
did not come up with the LEI but, rather,
is using an existing framework to replace
the identification numbers currently used
for reporting HMDA data. So how does a
credit union acquire its LEI?
First, some credit unions already have
an LEI. The Global LEI Foundation has
a search function that includes all LEIs
issued to date, which a credit union can
use to see if it already has an LEI. Many
credit unions do not already have an
LEI, but one can be obtained from the
GMEI Utility, which is endorsed by the
Global LEI Foundation. There are some
frequently asked questions on their
website; here are highlights derived from
those FAQs.

What information is needed to register? The basic information listed in the
ISO 17422, such as the credit union's
legal name, registered address, headquarters address, legal form, etc.
How much does the registration
cost? GMEI Utility charges $200 for
a registration request, with a $19
surcharge. To maintain the LEI moving
forward, the fee is $100 with a $19
surcharge. For more information,
the FAQs specific to payment can
be found at www.gmeiutility.org/
frequentlyAskedQuestions.jsp#plus6_7.
How long does this process take?
Once payment is processed, the GMEI
will validate the credit union using
public sources. Once this process is
complete, it takes about three business
days for an LEI to be issued in the
GMEI database.
Overall, GMEI Utility's FAQs say most
requests are "cleared" within three to five
business days.
Brandy Bruyere is NAFCU's vice president
of regulatory compliance.
THE NAFCU JOURNAL MAY-JUNE 2017


http://www.gmeiutility.org/login.jsp?action=register http://www.gmeiutility.org/login.jsp?action=register http://www.gmeiutility.org/frequentlyAskedQuestions.jsp#plus6_7 http://www.gmeiutility.org/frequentlyAskedQuestions.jsp#plus6_7 http://www.ecfr.gov/cgi-bin/text-idx?SID=a35d983caabfe9720ebdacda14ac77ae&mc=true&node=20151028y1.42 http://www.ecfr.gov/cgi-bin/text-idx?SID=a35d983caabfe9720ebdacda14ac77ae&mc=true&node=20151028y1.42 https://www.gmeiutility.org/ https://www.gmeiutility.org/frequentlyAskedQuestions.jsp

Table of Contents for the Digital Edition of The NAFCU Journal May - June 2017

Our First 50 Years
Events Calendar
From the Chair
Inside NAFCU
The Digital Download
50 Ways to Grow Your Credit Union Professional and operational
Fields of Opportunity
2017 Annual Conference Exhibitor Directory
Getting to Know …
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal May - June 2017 - Cover1
The NAFCU Journal May - June 2017 - Cover2
The NAFCU Journal May - June 2017 - 1
The NAFCU Journal May - June 2017 - Our First 50 Years
The NAFCU Journal May - June 2017 - Events Calendar
The NAFCU Journal May - June 2017 - From the Chair
The NAFCU Journal May - June 2017 - 5
The NAFCU Journal May - June 2017 - Inside NAFCU
The NAFCU Journal May - June 2017 - 7
The NAFCU Journal May - June 2017 - 8
The NAFCU Journal May - June 2017 - 9
The NAFCU Journal May - June 2017 - 10
The NAFCU Journal May - June 2017 - 11
The NAFCU Journal May - June 2017 - 12
The NAFCU Journal May - June 2017 - 13
The NAFCU Journal May - June 2017 - The Digital Download
The NAFCU Journal May - June 2017 - 15
The NAFCU Journal May - June 2017 - 50 Ways to Grow Your Credit Union Professional and operational
The NAFCU Journal May - June 2017 - 17
The NAFCU Journal May - June 2017 - 18
The NAFCU Journal May - June 2017 - 19
The NAFCU Journal May - June 2017 - 20
The NAFCU Journal May - June 2017 - 21
The NAFCU Journal May - June 2017 - Fields of Opportunity
The NAFCU Journal May - June 2017 - 23
The NAFCU Journal May - June 2017 - 24
The NAFCU Journal May - June 2017 - 25
The NAFCU Journal May - June 2017 - 26
The NAFCU Journal May - June 2017 - 27
The NAFCU Journal May - June 2017 - 28
The NAFCU Journal May - June 2017 - 2017 Annual Conference Exhibitor Directory
The NAFCU Journal May - June 2017 - 30
The NAFCU Journal May - June 2017 - 31
The NAFCU Journal May - June 2017 - 32
The NAFCU Journal May - June 2017 - 33
The NAFCU Journal May - June 2017 - 34
The NAFCU Journal May - June 2017 - 35
The NAFCU Journal May - June 2017 - 36
The NAFCU Journal May - June 2017 - 37
The NAFCU Journal May - June 2017 - 38
The NAFCU Journal May - June 2017 - 39
The NAFCU Journal May - June 2017 - 40
The NAFCU Journal May - June 2017 - 41
The NAFCU Journal May - June 2017 - 42
The NAFCU Journal May - June 2017 - 43
The NAFCU Journal May - June 2017 - Getting to Know …
The NAFCU Journal May - June 2017 - 45
The NAFCU Journal May - June 2017 - Management Insight
The NAFCU Journal May - June 2017 - 47
The NAFCU Journal May - June 2017 - Compliance Central
The NAFCU Journal May - June 2017 - 49
The NAFCU Journal May - June 2017 - Inside NAFCU Services
The NAFCU Journal May - June 2017 - 51
The NAFCU Journal May - June 2017 - From the President’s Desk
The NAFCU Journal May - June 2017 - Cover3
The NAFCU Journal May - June 2017 - Cover4
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovemberDecember2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_SeptOct2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JulAug2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MayJun2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MarApr2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JanFeb2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovDec2019
https://www.nxtbook.com/ygsreprints/NAFCU/G109023_nafcu_septoct2019
https://www.nxtbook.com/ygsreprints/NAFCU/G106941_nafcu_julaug2019
https://www.nxtbook.com/ygsreprints/NAFCU/G105388_nafcu_mayjun2019
https://www.nxtbook.com/ygsreprints/NAFCU/G103030_nafcu_marapr2019
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2019
https://www.nxtbook.com/ygsreprints/NAFCU/G100235_nafcu_novdec2018
https://www.nxtbook.com/ygsreprints/NAFCU/G98517_nafcu_septoct2018
https://www.nxtbook.com/ygsreprints/NAFCU/G96479_nafcu_julaug2018
https://www.nxtbook.com/ygsreprints/NAFCU/G93390_nafcu_mayjune2018
https://www.nxtbook.com/ygsreprints/NAFCU/G90161_nafcu_marapr2018
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2018
https://www.nxtbook.com/ygsreprints/NAFCU/G83806_nafcu_novdec2017
https://www.nxtbook.com/ygsreprints/NAFCU/G80296_nafcu_septoct2017
https://www.nxtbook.com/ygsreprints/NAFCU/G79086_nafcu_julyaugust2017
https://www.nxtbook.com/ygsreprints/NAFCU/G75911_nafcu_mayjune2017
https://www.nxtbook.com/ygsreprints/NAFCU/G73247_nafcu_marapr2017
https://www.nxtbook.com/ygsreprints/NAFCU/G71923_nafcu_janfeb2017
https://www.nxtbook.com/ygsreprints/NAFCU/G69249_nafcu_novdec2016
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_septoct2016
https://www.nxtbook.com/ygsreprints/NAFCU/g63853_nafcu_julaug2016
https://www.nxtbook.com/ygsreprints/NAFCU/g61005_nafcu_mayjun2016
https://www.nxtbook.com/ygsreprints/NAFCU/g58935_nafcu_marapr2016
https://www.nxtbook.com/ygsreprints/NAFCU/g56716_nafcu_janfeb2016
https://www.nxtbook.com/ygsreprints/NAFCU/g55605_nafcu_novdec2015
https://www.nxtbook.com/ygsreprints/NAFCU/g53582_nafcu_sepoct2015
https://www.nxtbook.com/ygsreprints/NAFCU/g52154_nafcu_july2015
https://www.nxtbook.com/ygsreprints/NAFCU/g50302_nafcu_mayjune2015
https://www.nxtbook.com/ygsreprints/NAFCU/g48554_nafcu_marapr2015
https://www.nxtbook.com/ygsreprints/NAFCU/g47118_nafcu_janfeb15
https://www.nxtbook.com/ygsreprints/NAFCU/g45886_nafcu_novdec2014
https://www.nxtbook.com/ygsreprints/NAFCU/g44155_nafcu_sepoct2014
https://www.nxtbook.com/ygsreprints/NAFCU/g42892_nafcu_julyaug2014
https://www.nxtbook.com/ygsreprints/NAFCU/g41296_nafcu_mayjun2014
https://www.nxtbook.com/ygsreprints/NAFCU/g39799_nafcu_marapr2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38961_nafcu_janfeb2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38041_nafcu_novdec2013
https://www.nxtbook.com/ygsreprints/NAFCU/g36539_nafcu_sepoct2013
https://www.nxtbook.com/ygsreprints/NAFCU/g34910_nafcu_julaug2013
https://www.nxtbookmedia.com