The NAFCU Journal July - August 2017 - 53

Upcoming Compliance Deadlines
Sept. 15, 2017

Changes to NACHA's operating guidelines will enable same-day processing of virtually any ACH payment
under $25,000. All receiving financial institutions (RDFIs) will be required to receive same-day ACH
payments, and RDFIs will be required to make funds available from same-day ACH credits (such as payroll
direct deposits) to depositors by 5 p.m. at the RDFI's local time. Each originating financial institution
(ODFI) must pay the RDFI a same-day entry fee of 5.2 cents for each same-day transaction it processes.
These changes are being implemented in three phases, which began in September 2016.

Oct. 1, 2017

The CFPB issued a final rule proposing new federal consumer protections for the prepaid market
under Regulations E and Z. The final rule modifies general Regulation E requirements to create: new
disclosures; error resolution procedures; consumer liability limits for unauthorized transactions; fee
limits; and additional requirements for accounts with overdraft or credit features.

Oct. 3, 2017

The Department of Defense (DoD) amended its regulation implementing the Military Lending Act (MLA),
which established a maximum Military Annual Percentage Rate (MAPR) of 36 percent for the extension of
consumer credit to a covered borrower and his or her dependents. The definition of "consumer credit" within
the regulation has now been expanded to extend the protections of the MLA to a broader range of financial
products, including closed-end and open-end credit products.

Oct. 19, 2017

The CFPB amended certain mortgage servicing rules, previously issued in 2013, by clarifying, revising or
amending provisions regarding force-placed insurance notices, policies and procedures, early intervention,
and loss mitigation requirements under Regulation X's servicing provisions; and prompt crediting and
periodic statement requirements under Regulation Z's servicing provisions. Technical corrections were
also made. In addition, the CFPB concurrently released an interpretive rule under the Fair Debt Collection
Practices Act relating to servicers' compliance with certain mortgage servicing rules.
Download the latest NAFCU Compliance Calendar at www.nafcu.org/compliancecalendar.

states the examination process is meant
to be forward-looking, with a heightened
focus on management's ability to identify
and monitor current and potential risk
areas. To account for the CCRS updates,
the NCUA released a supervisory letter
on March 29. It updated the agency's
compliance risk indicators and advised
that these are best managed when the
credit union is proactive, self-identifies
and self-corrects identified deficiencies.
The updated compliance risk indicators
described in the guidance have three
broad categories: Board and Management
Oversight; Compliance Programs; and
Violations of Law and Consumer Harm.
The NCUA examines the first two categories with consideration to a credit union's
size, complexity and risk profile. Here are
the categories, along with several factors:

Board and Management
Oversight
■■

Commitment to the credit union's
compliance management system.

THE NAFCU JOURNAL  JULY-AUGUST 2017

Effectiveness of change-management processes.
■■ Risk management associated with
products, services and activities.
■■ Self-identification efforts and corrective actions taken.
■■

Compliance Program

The effectiveness of a credit union's
compliance management system.
■■ Policies and procedures, training,
monitoring and audit programs, and
complaint resolution.
■■

Violations of Law and
Consumer Harm (If Applicable)
Pervasiveness of the violation.
Root cause of the violation.
■■ Severity of the violation or any consumer harm.
■■ Duration of the violation.
■■
■■

In reviewing the differences between
the prior compliance risk indicators and
the recent supervisory letter, the NCUA
appears to have provided a greater level

of detail and modified some of the
terminology used to describe compliance risk factors. For instance, the 2002
compliance risk indicator has a factor
called "response to changes." In the new
supervisory guidance, this factor was
renamed "change management" and is
now listed under "board and management oversight."
The NCUA noted that the updated list
of indicators does not impose any new
or higher supervisory expectations, but
it does update examination procedures.
Examiners will continue to use the
Management CAMEL component rating
and the CAMEL composite rating as
appropriate to reflect conclusions about
a credit union's compliance risk.
Stephanie Lyon is a NAFCU regulatory
compliance counsel.

53


http://www.nafcu.org/compliancecalendar

Table of Contents for the Digital Edition of The NAFCU Journal July - August 2017

Our First 50 Years
Events Calendar
From the Chair
Inside NAFCU
The Digital Download
How Secure Is Your Credit Union?
The Bank Secrecy Act
2017 Annual NAFCU Award Winners
2016 NAFCU Annual Report
Getting to Know …
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal July - August 2017 - Cover1
The NAFCU Journal July - August 2017 - Cover2
The NAFCU Journal July - August 2017 - 1
The NAFCU Journal July - August 2017 - Our First 50 Years
The NAFCU Journal July - August 2017 - Events Calendar
The NAFCU Journal July - August 2017 - From the Chair
The NAFCU Journal July - August 2017 - 5
The NAFCU Journal July - August 2017 - Inside NAFCU
The NAFCU Journal July - August 2017 - 7
The NAFCU Journal July - August 2017 - 8
The NAFCU Journal July - August 2017 - 9
The NAFCU Journal July - August 2017 - 10
The NAFCU Journal July - August 2017 - 11
The NAFCU Journal July - August 2017 - 12
The NAFCU Journal July - August 2017 - 13
The NAFCU Journal July - August 2017 - The Digital Download
The NAFCU Journal July - August 2017 - 15
The NAFCU Journal July - August 2017 - How Secure Is Your Credit Union?
The NAFCU Journal July - August 2017 - 17
The NAFCU Journal July - August 2017 - 18
The NAFCU Journal July - August 2017 - 19
The NAFCU Journal July - August 2017 - 20
The NAFCU Journal July - August 2017 - 21
The NAFCU Journal July - August 2017 - The Bank Secrecy Act
The NAFCU Journal July - August 2017 - 23
The NAFCU Journal July - August 2017 - 24
The NAFCU Journal July - August 2017 - 25
The NAFCU Journal July - August 2017 - 26
The NAFCU Journal July - August 2017 - 27
The NAFCU Journal July - August 2017 - 28
The NAFCU Journal July - August 2017 - 29
The NAFCU Journal July - August 2017 - 2017 Annual NAFCU Award Winners
The NAFCU Journal July - August 2017 - 31
The NAFCU Journal July - August 2017 - 32
The NAFCU Journal July - August 2017 - 33
The NAFCU Journal July - August 2017 - 34
The NAFCU Journal July - August 2017 - 35
The NAFCU Journal July - August 2017 - 36
The NAFCU Journal July - August 2017 - 2016 NAFCU Annual Report
The NAFCU Journal July - August 2017 - 38
The NAFCU Journal July - August 2017 - 39
The NAFCU Journal July - August 2017 - 40
The NAFCU Journal July - August 2017 - 41
The NAFCU Journal July - August 2017 - 42
The NAFCU Journal July - August 2017 - 43
The NAFCU Journal July - August 2017 - 44
The NAFCU Journal July - August 2017 - 45
The NAFCU Journal July - August 2017 - 46
The NAFCU Journal July - August 2017 - 47
The NAFCU Journal July - August 2017 - Getting to Know …
The NAFCU Journal July - August 2017 - 49
The NAFCU Journal July - August 2017 - Management Insight
The NAFCU Journal July - August 2017 - 51
The NAFCU Journal July - August 2017 - Compliance Central
The NAFCU Journal July - August 2017 - 53
The NAFCU Journal July - August 2017 - Inside NAFCU Services
The NAFCU Journal July - August 2017 - 55
The NAFCU Journal July - August 2017 - From the President’s Desk
The NAFCU Journal July - August 2017 - Cover3
The NAFCU Journal July - August 2017 - Cover4
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