It is that time again. Regulation changes (‘re-regulation’) are in the works. Is your credit union prepared? It is vital to make sure your credit union is ready for these mandatory changes. Credit unions saw a myriad of changes in 2015. This came about due to the rules prescribed by the 2010 Dodd-Frank Financial Reform Law. Thankfully, about 40% of those rules had yet to be finalized at the time; otherwise there would have been an onslaught of regulatory chaos. As the law continues to be phased in, though, one question surely remains. Will the regulatory chokehold placed on credit unions continue to grow tighter? This is one of many unanswered questions facing us all following this years’ election results.
Past Regulatory Changes
The saving grace in all of this is that federal officials have to ensure that their efforts do not prevent credit unions from fulfilling their mission. Although it may seem like it at times, they are not purposefully “out to get” credit unions, and make their lives difficult. However, last year about 15 different federal agencies enacted just over 190 regulatory changes for financial institutions. This generated about 6,000 pages worth of rules. True, credit unions are not specifically the target of these regulations. Important to realize, the regulations target predatory lenders. However, the changes resulted in huge compliance costs for credit unions. Thankfully, most have adapted, and simply have to keep up with regulatory updates that happen every so often.
Upcoming Regulatory Changes
Upcoming regulations to be aware of include:
- NCUA’s Modern Field-of-Membership Rule (FOM)
- A proposed rule from NCUA to “provide further field-of-membership community charter options for federal credit unions”
- CFPB’s final rule that makes “several revisions to Regulation C’s reporting requirements under the Home Mortgage Disclosure Act (HDMA).” Phase I will take place January 1, 2017 and Phase II will take place January 1, 2018.
- NCUA’s final rule which “amends NCUA’s rules and regulations relating to member business lending for all federally insured credit unions. It allows a credit union to implement a principles-based risk management policy related to its commercial and business lending activities and removes the current waiver process and personal guarantee requirements.”
For a full list of compliance dates and pending regulations (not yet finalized) visit the NCUA website.
Preparing for Future Regulatory Changes
Now is a great time to pay attention to credit union compliance. Keep in mind; a compliance officer for any federal governing authority can examine your credit union at any time. Not to mention, a fine could be heading your way if your credit union is out of compliance. That’s why using Oak Tree as your credit union forms provider is such a good idea. Oak Tree’s forms packages comply with all state and federal regulations. In addition, they are updated constantly to make sure they remain that way.
Choosing us as your forms provider gives you the peace of mind you need, should a compliance examiner walk through your door. Contact us today with our online chat at www.OakTreeBiz.com and let’s talk about compliance. We would love to help!