National Credit Union Administration (NCUA) 

NCUA’s Funds Receive Clean Audit Opinions 

The NCUA’s four funds earned unmodified, or “clean”, audit opinions for 2024. The financial statements, audited by the independent auditor KPMG LLP, cover the National Credit Union Share Insurance Fund, the agency’s Operating Fund, the Central Liquidity Facility, and the Community Development Revolving Loan Fund. 

The Share Insurance Fund, which held assets of $22.3 billion on Dec. 31, 2024, protects the deposits of more than 142 million members at more than 4,400 federally insured credit unions. 

Federal Credit Union Post-Examination Survey 

The NCUA has been using a voluntary post-examination survey for examinations of federal credit unions since 2021. The feedback helps the NCUA evaluate the examination process and view credit union useful suggestions. 

Starting in May 2025, the NCUA has arranged for an external third-party vendor to administer the surveys. Survey responses will generally not be used on an individual credit union basis. The NCUA’s review will continue to be based on aggregate survey data. 

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Consumer Financial Protection Bureau (CFPB) 

Senator Kennedy Introduced Bill to Repeal Section 1071 of the Dodd-Frank Act 

Senator John Kennedy introduced a bill to repeal the CFPB’s final rule to implement Section 1071 of the Dodd-Frank Act which would amend the ECOA and require credit unions to collect and report data on applications and loans to small businesses, including which of those are made to women-, minority-, or LGTBQ+ owned businesses. Collection and reporting of the data is expected to begin for Tier 1 institutions in July 2025, followed by Tier 2 institutions in January 2026, and finally Tier 3 institutions in October 2026. As previously reported, House Representative Williams introduced similar legislation. 

House and Senate Leaders Introduce Resolution to Overturn CFPB Final Rule on Overdraft Fees 

The House Financial Service Committee Chairman French Hill (R-AR) and Senate Banking Committee Chairman Tim Scott (R-SC) introduced Congressional Review Act (CRA) resolutions to overturn the Biden Administration’s Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees at banks and credit unions. The committee leaders cited the rule’s impact on access to important financial services and reiterated that lawful and contractually agreed upon payment incentives promote financial discipline and responsibility.   

The CFPB finalized the rule in December, capping overdraft fees at $5 for financial institutions with more than $10 billion in assets.   

Previous Acting CFPB Director Scott Bessent filed a motion to delay the rule’s effective date until Dec. 30 (90 days past the current effective date). 

As we are preparing to launch InfoSight360, we want to provide a quick update on our progress. We’re currently in the first phase of testing, where our Leagues and Associations have early access and are providing feedback. Next, we’ll be moving into Phase 2, where credit unions who signed up for the beta program will begin their hands-on testing. This is an important step for us as it allows us to gather valuable feedback and make improvements. We will share more information soon, so please stay tuned for updates!

Matters Requiring Immediate Attention (MRIAs)

We have often mentioned that the Consumer Compliance Outlook published by the Federal Reserve System is a great resource. Their fourth issue was released this week, and the main article focuses on the top-issued fair lending matters requiring immediate attention (MRIAs) and matters requiring attention (MRAs). The Federal Reserve produces this publication (and this article specifically) to help their covered institutions assess compliance risk by identifying areas where other financial institutions have faced challenges, how they remediate those challenges, and providing ways to mitigate those risks. This is insight that can benefit us all. 

Below are the top Fair Lending MRIAs/MRAs for state member banks that were identified by the Federal Reserve in 2022. 

1. Failing to conduct Fair Lending Risk Assessments. The goal of a risk assessment is to identify and mitigate the residual risk that remains after identifying fair lending risk and the controls implemented to mitigate the risks.

2. Failing to conduct Fair Lending Training. Compliance departments can become complacent and overlook the benefits of recurring fair lending training, especially for board members and management. Training is most effective when it’s recurring, often annually.  

3. Failing to Gross Up Nontaxable Income When Underwriting is Based on Gross Income. The primary reason is policies and procedures are not in place that require underwriters to gross up nontaxable income when underwriting is based on gross income. Banks have been likely to maintain this policy or practice, calculating income for products not subject to investor standards that require gross-up of income, such as the standards of Fannie Mae and Freddie Mac. 

4. Risk Monitoring and Management Information System (Exception Monitoring). If loan officers have discretion, it should be monitored, especially in pricing or underwriting. Having clear, written, objective pricing and underwriting criteria helps to limit lender discretion, allowing loan officers to make exceptions to those rules can increase fair lending risk. Oversight should be maintained over loan officers’ use of discretion by tracking and monitoring (including the frequency, amount and magnitude) to confirm that exceptions do not result in potential disparities on a prohibited basis. 

Make sure to reference the resources available within CU PolicyPro (Policy 7120: Fair Lending) and InfoSight (Fair Lending Laws and Regulations under the Loans and Leasing Channel).   

As always, if you have any questions, comments, or concerns, please reach out to us at info@leagueinfosight.com.  

Glory LeDu 

CEO, League InfoSight & CU Risk Intelligence 

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March 2, 2025: CFPB Proposed Rule – Amendments to Regulation V to Limit Data Broker Sales of Personal Information   

March 17, 2025: CFPB – Prohibition on Creditors and CRAs Concerning Medical Information (Regulation V)

July 1, 2025: CFPB and FRB – Reg CC Threshold Adjustments 

July 18, 2025: CFPB – Small Business Lending Data – ECOA 

Oct. 1, 2025: Quality Control Standards AVMs 

Dec. 30, 2025: CFPB: Overdraft Lending: Very Large Financial Institutions (Over $10 billion)

Jan. 1, 2026: NCUA – Succession Planning Effective Date

March 1, 2026: CFPB: Residential Property Assessed Clean Energy Financing (Reg Z) 

April 1, 2026: Compliance Date – CFPB Personal Financial Data Rights for Credit Union’s over $10 billion in assets 

June 19, 2026: NACHA – Fraud Return Reason Code

Dec. 12, 2026: NCUA Simplification of Share Insurance Effective Date 

Can we open an LLC account using a member's SSN, or do they have to have a TIN? 

You can open a Limited Liability Corporation (LLC) account using a member's SSN, but ONLY if it is a single member LLC. The IRS permits LLCs to report using their SSN if there is only one individual who belongs to the LLC. In that situation, the members should be reporting their income and expenses on IRS Form 1040. 

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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 weekend!

Your GoWest Compliance Team, 

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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