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Compliance Specific News & Resources for GoWest Credit Unions
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Compliance Newsletter

COMPLIANCE HEADLINES


U.S. House of Representatives 


House Approves SJ Res. 32 


The U.S. House of Representatives passed Senate Joint Resolution 32 which uses the Congressional Review Act powers of Congress to block the CFPB’s final rule on Small Business Lending Data Collection and Reporting. The Senate passed SRJ 32 in October. The Resolution now moves to President Biden. The White House had previously threatened to veto the measure. 


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National Credit Union Administration (NCUA) 


NCUA Reinstates Civil Money Penalties for Late Call Report Filing 


The NCUA announced that it will reinstate assessing civil money penalties for credit unions failing to submit NCUA Form 5300 Call Report on time, effective January 1, 2024. 


The December 2023 Call Report will be the first reporting cycle under the reinstated program and will be due by 11:59:59 p.m. Eastern time, January 30, 2024. 


To assist credit unions in avoiding a penalty, the NCUA will send a reminder to credit unions with outstanding Call Reports one week before the due date. 


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Consumer Financial Protection Bureau (CFPB) 


CFPB Orders Bank of America to Pay $12 Million for Reporting False Mortgage Data 


The CFPB ordered Bank of America to pay a $12 million penalty for submitting incomplete mortgage lending information to the federal government required by the Home Mortgage Disclosure Act (HMDA).  For at least four years, numerous Bank of America loan officers failed to ask mortgage applicants demographic information required by HMDA, and then falsely reported that the applicants had chosen not to respond.  This conduct violated HMDA and its implementing regulation, Regulation C, as well as the Consumer Financial Protection Act. Specifically, the CFPB found that Bank of America: 

  • Falsely reported that applicants declined to provide information: Hundreds of Bank of America loan officers reported that 100% of mortgage applicants chose not to provide their demographic data over at least a three month period. In fact, these loan officers were not asking applicants for demographic data, but instead were falsely recording that the applicants chose not to provide the information. 

  • Failed to adequately oversee accurate data collection: Bank of America did not ensure that its mortgage loan officers accurately collected and reported the demographic data required under HMDA. For example, the bank identified that many loan officers receiving applications by phone were failing to collect the required data as early as 2013, but the bank turned a blind eye for years despite knowledge of the problem. 

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Financial Crimes Enforcement Network (FinCEN) 


FinCEN Updates BOI FAQs for Reporting Companies 


FinCEN added and updated the Beneficial Ownership Information (BOI) Reporting FAQs as part of a redesign of the BOI information page. In 2021 Congress enacted the Corporate Transparency Act. This law creates a beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit their ill-gotten gains through shell companies or other opaque ownership structures. 


Starting on January 1, 2024, many business entities will be required to report to FinCEN BOI information on two categories of individuals: (1) individuals with equity ownership interest of 25% or more in the business; and (2) one individual with significant responsibility to control the business. 


FinCEN Alert on COVID-19 Employee Retention Credit Fraud 


FinCEN, along with the IRS has issued an alert to financial institutions on fraud schemes related to the COVID-19 Employee Retention Credit (ERC) and is urging vigilance in identifying and reporting related suspicious activity. The ERC was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act as a tax credit to encourage businesses to keep employees on payroll during the COVID-19 pandemic and was subsequently extended and amended three times. 


The IRS has identified ongoing fraud and scams related to the ERC that, to date, have resulted in 323 investigations involving more than $2.8 billion of potentially fraudulent ERC claims throughout tax years 2020, 2021, 2022, and 2023. Now that the IRS has cleared the backlog of ERC claims, the IRS has shifted its attention to investigating questionable ERC claims and has placed a moratorium on the filing of any new claims. 


The alert provides an overview of typologies associated with ERC fraud and scams, highlights select red flags to assist financial institutions in identifying and reporting suspicious activity and reminds financial institutions of their reporting requirements under the Bank Secrecy Act (BSA). 


The ERC has become a popular target for such fraud as identified by CI and other law enforcement agencies. Individuals have been known to file fraudulent ERC claims using shell companies or existing but ineligible businesses and, in some cases, have abused the taxpayer-funded program to pay for lavish purchases and personal expenses upon receipt of the credit. 


FinCEN Extends Deadline for Companies Created or Registered in 2024 to File Beneficial Ownership Information Reports 


FinCEN issued a final rule which extends the deadline for reporting companies created or registered in 2024.  Those reporting companies will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports. FinCEN will not accept BOI reports from reporting companies until January 1, 2024—no reports should be submitted to FinCEN before that date.  



League InfoSight Highlight

League InfoSight Highlight: Exciting News: The New CU PolicyPro/RecoveryPro Combined Site is on the Horizon! 



League InfoSight is excited to announce that we are on the verge of completing Phase I of our product redesign which brings CU PolicyPro and RecoveryPro together on a single site. This is a pivotal step in our ultimate goal of integrating CU PolicyPro and RecoveryPro with InfoSight into one platform. 


While each product serves a unique purpose, their information often complements one another and overlaps in topics. The new system will feature a single sign-on, providing a centralized hub for compliance information, operational tools, resources, and your credit union's policies, procedures, and business continuity plan. 


Phase I is set to launch on December 11, 2023! Please note the system will be unavailable December 9-10 as we transition to the combined site.  


Key Advantages of the Combined Site: 

  • Convenient Access: Enjoy easy access to both products without the need to switch between different applications. 

  • Unified Interface: Access all functionalities from a single interface, ensuring a consistent user experience that saves time, reduces complexity, and minimizes the learning curve.  

  • Integrated Tools: Find all the necessary tools in one place, facilitating collaboration, file sharing, and information exchange.  


What to Expect: 

  • System Downtime: The system will be unavailable on Saturday, December 9, and Sunday, December 10 as we complete the transition.  

  • Data Import: All customized content, files, users, and assignments will be seamlessly imported to the new platform.  

  • Login Details: Your login to the combined system will be your current email address and password. If you encounter any login issues, use the Forgotten Password link, or reach out to our support team.  

  • User Access: User access has been reconfigured to accommodate multiple products. Access rights will be mirrored as closely as possible to the user’s current access, with minor differences in a few cases. Contact our support team if you have questions or need changes to access.  

  • Support: The Support Site has been updated to reflect the new functionality in the combined system. In addition, new training videos and live webinars will be available after the combined site launch.  


For any inquiries about the combined site, contact our support team at policysupport@cusolutionsgroup.com


Have additional questions? Explore the CU PolicyPro/RecoveryPro site combination FAQs for more information! 


Mary Ann Koelzer,
Senior Technology Products Manager, League InfoSight 



ARTICLES OF INTEREST


CFPB and 11 States Order Prehired to Provide Students More than $30 Million in Relief for Student Lending Practices 


FinCEN Announces Largest Settlement in U.S. Treasury Department History with Virtual Asset Exchange Biance for Violations of U.S. Anti-Money Laundering Laws 


Making Ends Meet in 2023: Insights from the Making Ends Meet Survey 


SCAM UPDATES


So an Online Scam is NOT What You Ordered? 



COMPLIANCE CALENDAR

Dec. 25, 2023: Christmas Day- Federal Holiday 


Dec. 26, 2024: Comments Due NCUA Proposed Rule on Simplification of Share Insurance Rules 


Dec 29, 2023 – Comments Due CFPB Proposed Rule on Personal Financial Data Rights 


Jan. 8, 2024: Comments Due NCUA Proposed Rule on Fair Hiring in Banking  


Jan 22, 2024:<> Comments Due FinCEN Proposed Rule on CVC Mixer Reporting 


Feb. 12, 2024: Comments Due FRB Interchange Proposal 


TOOLS & RESOURCES

Effective Dates
Bulletins & Alerts
Webinar Calendar
AffirmX and GoWest Partnership

Q&A OF THE WEEK

A member would like to refinance his closed-end home equity loan. Do we need to give him another notice of recission? 


No, the credit union does not have to give him a rescission notice even though the loan is one where his principal dwelling is subject to a security interest.  Regulation Z, Section 1026.23(f) lists the types of transactions that are exempt from the rescission notice.  If this member's closed-end home equity loan refinance does not involve a new advance of money, it is exempt.  If there is new money, the amount of the new advance is subject to rescission.  The right of rescission applies to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing. 


12 CFR 1026.23 


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If you have questions about this communication, contact us at 800.546.4465, or via our shared email inbox at compliance@gowest.org.

Have a great week!

Your GoWest Compliance Team, 

David Curtis

CUCE

Director, Compliance Services
P: 206.340.4785

Tiarra Sanders-Hausa

NCCO

Manager, Compliance Services

P: 206.618.9302

Copyright © 2023 GoWest Credit Union Association. All Rights Reserved.

Mailing Address:
GoWest Credit Union Association, 18000 International Blvd Ste. 1102, SeaTac, WA 98188, United States
1.800.995.9064

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