OPS Update 2001 - League InfoSight...Policy 1205 – Board of Directors Duties Older Updates:...

CU PolicyPro POLICY UPDATE HISTORY

This document lists all policies updated since 2012, and includes a short description of each update from 2015

through June 30, 2020.

Policy Update History

Policy 1150 – Field of Membership 2017-2 Policy 1150 was amended to include changes made to the NCUA’s Chartering and Field of Membership Manual. (Recommended)

Policy 1170 – Equal Opportunity Statement Older Updates: 2014-2

Policy 1200 – Organization Older Updates: 2014-2

Policy 1205 – Board of Directors Duties Older Updates: 2013-3, 2014-2, 2014-3

Policy 1210 – Compensation, Reimbursement and Indemnification Older Updates: 2014-1

2018-3 This policy was updated to provide clarification in the general policy statement that Board education and training costs are reimbursable expenses. This is intended to clarify that the cost associated with the reimbursement and coverage of those type of educational expenses are not considered compensation. (Recommended)

Policy 1220: Bond Insurance 2019-3 This policy was updated to reflect the changes to the NCUA rules Part 713 that impact the requirements for fidelity bonds. (Recommended)

Policy 1230: Regulatory Compliance 2017-2 With the FFIEC’s updated rating system to reflect their current consumer compliance supervisory approaches, Policy 1230 was updated. There was more detail on the credit union’s compliance management system, including the necessity to be pro-active in identifying potential weakness and properly addressing those weaknesses, compliance review of third-party vendors and staying on top of regulatory changes and training staff accordingly. Additionally, an additional section was added to cross-reference the Credit Union’s Complaint policy, since this is a factor that examiners will be evaluating in the new consumer compliance rating system. (Recommended)

Policy 1235 – Education & Volunteer Training Guidelines Older Updates: 2013-3

https://www.ncua.gov/regulation-supervision/Documents/Regulations/final-rule-chartering-field-membership-manual.pdf

https://www.ncua.gov/regulation-supervision/Documents/Regulations/final-rule-chartering-field-membership-manual.pdf

https://www.ffiec.gov/press/pr110716.htm


Policy 1240 – Enterprise-Wide Risk Management Older Updates: 2012-1, 2013-2, 2014-2 2018-3 The name of policy 1240 was changed to eliminate the “Enterprise-Wide” reference and provide consistency with industry references. Other changes were made, including the addition of a key field for the credit union to add their risk appetite statement. (Recommended)

Policy 1300 – Audits Older Updates: 2014-2, 2015-1 2018-3 Because of the strong emphasis on Information Technology, this policy has been updated to include the responsibility of the Board of Directors to obtain an annual Information Technology Audit and Assessment, along with the corresponding scope and responsibility. Additionally, the report was updated to reference “Audit Committee” for those state-chartered credit unions who are not required to have a “Supervisory Committee,” but have the same requirements and responsibilities. (Recommended) 2019-3 This policy was updated to reflect the changes to the NCUA rules Part 715 and the impact on Supervisory Audit requirements. (Recommended) 2020-1 This policy had a minor grammatical update under section #4 related to requirements for an engagement letter. (Recommended)

Policy 1500: Staffing Older Updates: 2014-1

Policy 1505 – Whistleblowing Protection Policy Older Updates: 2013-3, 2014-2 2018-4 This policy was revised to be more comprehensive, including how whistleblowers can report potential activity and how investigations will take place. Credit unions may already have this policy as part of their Human Resources Policy Manual or Employee Handbook. If so, this policy should only be maintained in one location to avoid the need for updates in multiple locations. Notes: The content of this policy was reorganized and changed extensively, therefore, no redlined version is available. Also, one new Key Field was added to this policy. (Recommended)

Policy 1515 – Families First Coronavirus Response Act Policy (NEW POLICY)

2020-2


This policy was created to assist credit unions with the Families First Coronavirus Response Act (FFCRA) and the associated requirements. This policy can be utilized upon the effective date of April 1, 2020 but will expire on December 31, 2020. (Recommended)

Policy 1520: Succession Planning Older Updates: 2014-4, 2015-1 2018-4 This policy was updated to include the identification of high-potential employees as a mode/process for succession planning. The non-discrimination paragraph was also amended to include additional protected classes. (Recommended)

Policy 1530 – Employee Use of Social Media Older updates 2013-1, 2014-2, 2014-4,2015-4 2019-2 This policy was updated to strengthen the guidelines associated with employee use of social media, including a paragraph regarding employee privacy. (Recommended)

Policy 1531 – Credit Union Use of Social Media Older updates 2014-2

2019-2 Policy 1531 was also updated to include more up-to-date references to social media and to include responsibilities and authorities designated by the Credit Union for managing social media. (Recommended)

Policy 1540 – Complaint Policy for Federally Chartered Credit Unions Older updates 2014-2, 2015-4

Policy 1541 – Complaint Policy for State Chartered Credit Unions Older updates 2014-2, 2015-4

Policy 1600 – Code of Ethics and Diversity Older Updates: 2011-2, 2014-4, 2015-3 2018-4 This policy was revised to expand on the credit union’s commitment to diversity. (Recommended) 2020-4

This policy was revised to create additional content related to the credit union’s commitment to diversity and inclusion. (Recommended)


Policy 1615 – Privacy Older Updates: 2008-1, 2011-1, 2014-2, 2014-4, 2015-4 2016-1 As noted above in our CU PolicyPro Guidance, the law changed at the end of last year impacting the delivery of the annual privacy notice. Because the new law makes the alternative delivery method moot, we have deleted that section from the policy. We have also updated the policy to indicate the need for the annual privacy notice only when the credit union shares information that requires and opt-out and/or if changes were made to the privacy policy. (Recommended) 2018-4 This policy was revised to keep pace with the evolution and use of social media. Revisions include the guidance that only authorized employees are permitted to post on Credit Union owned social media. Additionally, changes were made to specifically remove types of activities that may result in termination by replacing it with general language, and also referencing situations protected by the National Labor Relations Act and discussion related to terms and conditions of employment. (Recommended) 2020-1 Policy 1615 was updated to remove old references under the “Exceptions” section, including the Resolution Trust Corporation. (Recommended)

Policy 1620 – Conflicts of Ethics Older Updates: 2009-1, 2015-1, 2015-3 2020-2 This policy was revised to incorporate language that resided in the Bank Bribery Act Policy (9300), clarifying the definition of “covered credit union individuals.” (Recommended)

Policy 1645 – Fraud Older Updates: 2014-2, 2015-1 2017-5

In order to start streamlining some of our model policies and eliminating redundant content, we combined all of the Fraud and Internal Control policies (1645, 3200, 3201) into one policy, Policy 1645- Fraud. Credit unions are encouraged to adopt and customize Policy 1645. Policies 3200 (Internal Control) and 3201 (Internal Fraud) will be removed from the Model Policies Manual. There is one new Key Field in this policy. (Recommended) 2020-4

This policy was revised to reference a new resource that was added to the CU PolicyPro Resources area under Tools. The new form is a sample employee/family account disclosure form. The creation of this form and reference within policy was based on examiner recommendations. (Recommended)


DELETED Policy 1650 – Gifts, Bribes or Kickbacks Deleted 2020-4 This policy was deleted from CU PolicyPro and the content was included within model Policy 1620 – Conflict of Interest.

Policy 1680: Political Contributions Older Updates: 2009-1, 2010-1, 2015-3

Policy 2100: General Operations Policies Older Updates: 2011-2, 2014-3

Policy 2110: Bank Secrecy Act Older Updates: 2012-2, 2013-1, 2013-2, 2013-4, 2014-1, 2014-3, 2014-4, 2015-1 2016-1 Minor revisions were made to Policy 2110. The 2nd key field was removed to general indicate that the Credit Union will coordinate an audit that will include independent testing of the BSA Program. Under the Suspicious Activity Reporting, the requirement for the Credit Union to notify the Credit Union’s primary regulator if asked to provide information that would disclose that it prepared or filed a SAR was removed. Credit Unions are only required to notify FinCEN of those requests. Lastly, a housekeeping change was made under Wire Transfers to properly indicate “transmittor.” (Recommended) 2016-2 With the Customer Due Diligence requirements scheduled to become effective in July 2016, policy 2110 was revised to incorporate language related to the identity and verification of beneficial owners of legal entity members. Although credit unions are not required to comply with these new rules until May 11, 2018 the policy has been revised to allow for an earlier adoption. Additionally, in the last update under Suspicious Activity Reporting, the requirement for the Credit Union to notify the Credit Union’s primary regulator if asked to provide information that would disclose that the credit union prepared or filed a SAR was amended to comply with the FinCEN guidance that they would only need to be notified and would alert the primary regulator. However, because NCUA regulations still indicate a notice requirement to them, the policy has been amended to indicate notification to FinCEN and the NCUA. (Recommended) 2016-3 Based on credit union request, we have added Section 11 at the end of the policy to address risk mitigation and BSA considerations for Credit Unions offering prepaid or gift cards. Credit unions are encouraged to review the proposed revisions and to adopt (and revise if necessary) if prepaid or gift card products are made available to their membership. (Recommended) 2018-1 Although policy 2110 was already updated with the changes associated with FinCEN’s Customer Due Diligence Requirements we heard from a few credit unions who underwent recent examinations that more detail within the policy regarding the form being used by the Credit Union to identify beneficial owners and the process for ongoing monitoring was being suggested. We’ve added more detail regarding those two topics and clarified

https://www.gpo.gov/fdsys/pkg/FR-2015-07-22/pdf/2015-17480.pdf




the provision in the new rule to require identification/verification of the beneficial owners of a legal entity at the time a “new account” (as opposed to membership) is opened. (Recommended) 2018-3 Although FinCEN issued a ruling to provide permanent exceptive relief from the beneficial ownership requirements for legal entity members for rollovers, renewals, modifications and extensions for certain accounts, we don’t believe any policy changes are necessary. However, credit unions should ensure their implementing procedures are updated accordingly. The BSA policy was updated to reflect changes to the address for CMIR filings and the corresponding date for FBAR filing.(Recommended) 2019-3 This policy was updated to reflect the SAR decision-making process. Specifically, the documentation of the decision-making process, including the final decision for contemplating, but not filing a SAR. (Recommended)

Policy 2112 – BSA – Servicing Marijuana-Related Accounts Older Updates: 2014-1

2018-3 With the rescission of the Cole Memo Priorities, this policy was updated to reflect the FinCEN guidance outlined in FIN-2014-G001 which has not been retracted nor updated guidance for credit unions provided. Reference to compliance with the “Cole Memo Priorities” specifically has been removed. (Recommended) 2019-3 This policy was updated to reflect the recent NCUA Guidance on serving hemp-related businesses. Additionally, the policy was amended to allow for the credit union to create their own definition of “marijuana-related business.” (Recommended) 2020-2 This policy was revised to create different tiers of marijuana-related activity. The credit union is encouraged to define “Marijuana-Related Accounts” based on those applicable tiers, which seems to be more of an industry best-practice. Additionally, because we have had feedback from credit unions that the policy doesn’t address accounts for consumers who may be associated with marijuana-related activity, we have amended the policy accordingly to incorporate “accounts” generally. (Recommended)

Policy 2113 – BSA – Not Servicing Marijuana-Related Accounts

Older Updates: 2014-3 2018-3 With the rescission of the Cole Memo Priorities, this policy was updated to reflect the FinCEN guidance outlined in FIN-2014-G001 which has not been retracted nor updated guidance for credit unions provided. Reference to compliance with the “Cole Memo Priorities” specifically has been removed. (Recommended)

https://www.fincen.gov/sites/default/files/administrative_ruling/2018-09-18/Permanent%20Exceptive%20Relief%20Extension%20of%20Compliance%20Date%20CDs_final%20508%202.pdf


2019-3 This policy was updated to reference hemp-related businesses. (Recommended) 2020-2 Note: there is no redlined version of this policy due to the number of changes. Similar to the revisions for model policy 2112, this policy was revised to create different tiers of marijuana-related activity. The credit union is encouraged to define “Marijuana-Related Accounts” based on those tiers, which seems to be more of an industry best-practice. Additionally, because we have had feedback from credit unions that the policy doesn’t address consumer accounts who may be associated with marijuana-related activity, we have amended the policy accordingly to incorporate “accounts” generally. This policy is for credit unions choosing not to “knowingly” service marijuana-related accounts, but allows the credit union the ability to further define what is actually considered a “marijuana-related account” at their credit union. (Recommended)

Policy 2114 – Politically Exposed Persons (PEPs) **New Policy 2018-4 Credit unions that open and maintain accounts for PEPs should adopt this policy as an addition to their existing BSA/AML and OFAC policies. (Recommended if service offered)

Policy 2185 – Third Party Due Diligence & Oversight 2017-5 Based on feedback received from credit unions, this policy was revised to add more clarity around the requirements for risk assessments. (Recommended)

Policy 2125: Teller Over and Short 2016-2 Policy 2125 was revised to include language regarding the Credit Union’s reconciliation of deposit discrepancies. This revision was included to better comply with the requirements in the Interagency Guidance Regarding Deposit Reconciliation Practices. (Recommended)

Policy 2140 – Purchasing Older Updates: 2014-4

Policy 2145: Office of Foreign Assets Control Older Updates: 2014-2, 2014-3 2020-2 Policy 2145 was updated to provide a more detailed summary on a comprehensive OFAC compliance program. In addition, information was updated to be in compliance with the reporting requirements for blocked property and rejected transactions. (Recommended)

Policy 2190 – Disaster Contingency Planning

https://www.ncua.gov/regulation-supervision/Pages/policy-compliance/communications/letters-to-credit-unions/2016/04.aspx



Older Updates: 2013-3, 2014-3 2016-3 The Recordkeeping section of this policy was revised to accurately exclude transfers made through an automated clearing house, an automated teller machine, or a point-of-sale system since they are excluded from the funds transfer definition within BSA rules and therefore exempt for these recordkeeping purposes. (Recommended) 2020-2 This policy was amended to reflect the name change for Policy 2195. (Recommended)

Policy 2195 : Pandemic Influenza Preparedness & Response Older Updates: 2014-3 2020-2 This policy was amended to remove specific reference to “influenza.” Instead, the policy references “pandemic illness” generally. Additionally, a section on “hardship programs” was added to the policy to allow for the credit union to implement programs that do not present a safety and soundness issue. (Recommended)

Policy 2196 – Telecommuting Policy (NEW POLICY) 2020-2 This policy was added to CU PolicyPro to assist credit unions with implementation, in light of the challenges association with the Coronavirus. The policy was provided by HR Suite. (Recommended)

Policy 2205 – Unlawful Internet Gambling Older Updates: 2012-1, 2014-1, 2015-1 2020-2 This policy was revised to provide for definitions, ongoing due diligence, the credit union’s responsibilities and to expand the coverage to “designated payment systems” generally. (Recommended)

Policy 2210 : Accounts Older Updates: 2014-3 2017-4 This policy was amended to add money market accounts as an option. Credit unions should include this account type and respective account criteria for money market accounts under either share or draft accounts depending on how the accounts are maintained. 3 new Key Fields were added to this policy. (Recommended) 2020-2

http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5;node=31:3.1.6.1.2#se31.3.1010_1100


This policy was updated to remove the prior reference to Electronic Transfers Accounts, which are no longer in use. Additionally, information was added to assist credit unions in modeling policy language for credit unions offering a “second chance” or “fresh start” account. (Recommended)

Policy 2211: Business Accounts Older Updates: 2012-1, 2014-1, 2014-3

2018-2 Policy 2211 was revised to include a reference to the requirement to obtain beneficial ownership information from business accounts in accordance with the new FinCEN rules that became effective in May of this year. While detailed changes regarding the new requirements were made to Policy 2110 – the Bank Secrecy Act / Anti-Money Laundering Program in the June 2016 and May 2018 updates, a reference to that policy and requirements are now being included in Policy 2211 to ensure compliance. (Recommended)

Policy 2212: Individual Retirement Arrangements Older Updates: 2012-1, 2013-1, 2014-3

2016-2 Record retention timeframe was amended for IRA documentation. Although specific guidance does not exist for retention time periods, Ascensus, a known subject matter expert, was consulted and recommends credit unions retain documentation for 7 years after the account is closed. (Recommended) 2017-3 With the changes made to the Department of Labor’s expanded definition of a fiduciary under the Conflict of Interest rules, Policy 2212 was updated to add in “prohibited transactions” from which the credit union will need to refrain in order to avoid an exemption under the rule. If the Credit Union decides to pursue an exemption to undertake these activities, they should work with Legal Counsel and this bullet should not be added. (Recommended) 2020-1 Policy 2212 was updated to reflect the recent law change (Setting Every Community Up for Retirement Enhancement Act of 2019 – SECURE Act) that became effective on January 1, 2020. Applicable to this policy is the change in the age at which an individual must begin taking a required minimum distribution from 70 ½ to 72. In addition, with the Department of Labor’s rule being vacated, the Fiduciary Rule language is being removed from the policy (although credit unions should be aware, this may come back at some point in the future. (Recommended)

Policy 2213: Trust Accounts Older Updates: 2014-1, 2014-3 2017-1 Policy 2213 was updated to include additional types of trust accounts and their respective definitions. Additionally, more information was added regarding the eligibility of a trust as a member and the membership requirements. (Recommended)

https://webapps.dol.gov/federalregister/PdfDisplay.aspx?DocId=28806


https://www.congress.gov/bill/116th-congress/house-bill/1994

https://www.congress.gov/bill/116th-congress/house-bill/1994


Policy 2214 – Health Savings Accounts Older updates 2012-1, 2013-1, 2014-1, 2014-4, 2015-4 2017-1 Each year the IRS changes the contribution limits that can be made to health savings accounts for both individuals and family. Those changes for 2017 are reflected in the policy revisions. (Required) 2017-5 Each year the IRS changes the contribution limits that can be made to health savings accounts for both individuals and family. Those changes for 2017 are reflected in the policy revisions. (Required) 2018-4 Each year the IRS changes the contribution limits that can be made to health savings accounts for both individuals and family. Those changes for 2019 are reflected in the policy revisions. (Required) 2020-1 Each year the IRS changes the contribution limits that can be made to health savings accounts for both individual and family plans. Those changes for 2020 are reflected in the policy revisions. (Recommended)

Policy 2215 – Account Ownership Older Updates: 2014-3

Policy 2216 – Deceased Depositor Issues & Estate Accounts Older updates 2014-3

Policy 2217 – Negative Account Balances 2018-2 This policy was revised to comply with the FCU model bylaws related to the maintenance of a membership share. (Recommended)

Policy 2218: Dormant Accounts Older Updates: 2015-2

Policy 2220 – E-Commerce Older Updates: 2013-3, 2014-1 2019-1 This policy was updated to provide more opportunities for customization related to e-commerce services offered by the credit union, associated employee training and the related reporting. There were also updates made regarding terms that are out of date within the Audit and System Architecture sections of the policy.

https://www.irs.gov/pub/irs-drop/rp-16-28.pdf



https://www.irs.gov/irb/2019-22_IRB#REV-PROC-2019-25

https://www.ecfr.gov/cgi-bin/text-idx?SID=99d4221f2c8fcab908803d6f96950486&mc=true&node=ap12.7.701_139.a&rgn=div9


Credit unions should note that NCUA Letter 02-CU-17 is a helpful resource when further customizing the policy and implementing associated procedures. Two new key fields were added to this policy. (Recommended)

Policy 2221 – Website Older Updates: 2013-3, 2014-4

Policy 2222: Electronic Communications/Acceptable Use Older Updates: 2013-3, 2014-1, 2014-4

Policy 2223 – Children’s Online Privacy Protection Policy Policy Created: 2013-4

2017-5 Based on the guidance issued by the FTC related to the use of voice recordings as a replacement for written words in performing search and other function, Policy 2223 has been updated. (Recommended)

Policy 2225 – Remote Banking (formerly Home Banking) Older Updates: 2012-1, 2012-2, 2014-3

Policy 2227 – Electronic Signatures Older Updates: 2014-2, 2015-4

Policy 2232 – Member Expulsion/Limitation of Service Older Updates: 2012-1 2017-4 This policy is being revised to address situations in which Federal Credit Unions can expel members (special meeting of membership or nonparticipation). Although this policy only indicates expulsion based on loss (through a special meeting), credit unions are encouraged to customize their policy accordingly, if they allow for termination of membership for other reasons. The title of this policy has been updated from “Loss Expulsion” to “Member Expulsion.” (Recommended) 2020-1 Note: The title of this policy has been updated. With the changes to the Federal Credit Union Bylaws that became effective on January 2, 2020, we used this opportunity to revised and expand on the additional content added to Article II related to “Continuation of membership” which includes the limitation of services for abuse and definition of a member in good standing. Credit unions should use this policy to meet the requirements of the FCU bylaws. State chartered credit unions should revise this policy to coincide with their local credit union act and laws. (Recommended)

Policy Deleted - Policy 2235 – Member Abuse 2020-1 This policy is being deleted and its contents moved to Policy 2232. (Recommended)

https://www.ncua.gov/files/letters-credit-unions/LCU2002-17.pdf

https://www.ftc.gov/news-events/press-releases/2017/10/ftc-provides-additional-guidance-coppa-voice-recordings

https://www.govinfo.gov/content/pkg/FR-2019-10-04/pdf/2019-20826.pdf


POLICY DELETED Policy 2240 – Member in Good Standing 2020-1 This policy is being deleted and its contents moved to Policy 2232. (Recommended)

Policy 2245 – Protecting the Elderly and Vulnerable from Fraud Older Updates: 2012-2, 2014-4, 2015-2 2019-2 This policy was revised to incorporate the change in law resulting from S.2155 related to the protection for employees and institutions from administrative and civil proceedings under federal law if they disclose suspected exploitation of a senior citizen. In order to receive this immunity, there are certain requirements the credit union must meet, which are now outlined within policy. (Recommended)

Policy 2270 – Safe Deposit Boxes Older Updates: 2014-3

Policy 2271 – Safe Deposit Boxes (Biometric Access) Older Updates: 2014-3

Policy 2280 – Share Insurance Older Updates: 2013-1, 2014-3 2018-2 Policy 2280 was updated to include the changes the NCUA made to the advertising requirements and use of the official advertising statement from 740.5. The amendments to the regulation allowed for the use of another option for including the official advertising statement. The amendments also included a revision that radio advertisements less than 30 seconds (increase from 15 seconds) do not need to include the official advertising statement. (Recommended)

Policy 2290 – Wire Transfers Older Updates: 2008-2, 2013-3, , 2014-1, 2014-4 2017-1 The Wire Transfers Policy was updated to reflect the regulatory requirement of allowing a member 60 days from receipt of their periodic statement to report an unauthorized transfer before incurring liability (1005.33(f)). 1005.33(f) (3) Unauthorized remittance transfers. If an alleged error involves an unauthorized electronic fund transfer for payment in connection with a remittance transfer, §§1005.6 and 1005.11 apply with respect to the account-holding institution. If an alleged error involves an unauthorized use of a credit account for payment in connection with a remittance transfer, the provisions of Regulation Z, 12 CFR 1026.12(b), if applicable, and §1026.13, apply with respect to the creditor. (Recommended)

https://www.ncua.gov/regulation-supervision/Documents/Regulations/accuracy-advertising-notice-insured-status.pdf


2018-3 A small section was added to the policy to address “controls for mortgage related wires.” In order to minimize risk of loss from errors or fraud from these typically large dollar amount wires and the speed most are processed, recommendation from Fannie and Freddie are to centralize wire transfer authority with limited amount of management, accounting or administrative employees having access. While this is a best practice, smaller credit unions who may have limited staff, will want to adjust the policy accordingly. (Recommended) 2020-4

This policy was updated to comply with the Regulation E changes for International Remittance Transfers.(Required)

Policy 2300 – Share Draft Accounts

2018-1 This policy is being revised to slightly amend the language associated with “excessive overdrafts.” According to industry guidance, credit unions are responsible for monitoring “excessive” usage for overdrafts. While there isn’t much guidance out there, we can find evidence that the financial industry considers a member who overdraws his/her account on more than six occasions where a fee is charged in a rolling twelve month period to be “excessive.” In looking further, an “occasion” is considered each time an overdraft transaction generates a fee, regardless if the overdrafts take place over multiple days. Therefore, the language indicates excessive overdrafts “on different days” is being removed as unnecessary. (Recommended)

Policy 2400: Funds Availability 2016-2 Policy 2400 was significantly revised to incorporate Policy 9410 – Expedited Funds Availability Act – Regulation CC, which was more expansive regarding the requirements contained within the Regulation. This policy was also updated to take in to consideration the NCUA Letter to Credit Unions regarding the Interagency Guidance Regarding Deposit Reconciliation Practices. The Guidance indicates that financial institutions are to adopt reconciliation policies and practices that are designed to avoid or reconcile discrepancies such that customers are not disadvantaged. Note: Due the extensive changes to this policy, both the regulatory update and combining this policy with 9410, there is no redlined version. It is recommended that you adopt the new 2400 policy in its entirety and remove 9410 from your manual. There are two new key fields for this policy. (Recommended)

2018-1 In addition to minor changes to allow for easier interpretation, Policy 2400 was updated to remove content associated with subparts C (Collection of Checks) and D (Substitute Checks) within Regulation CC. With this update, Policy 2400 will only include content related to subpart B (Availability of Funds and Disclosure of Funds Availability Policies), which was not impacted by the recent amendments to Regulation CC that become effective on July 1, 2018. As noted below, Policy 2401 was developed to include the revised content associated with the regulatory changes. (Recommended)

2019-2

https://www.govinfo.gov/content/pkg/FR-2020-06-05/pdf/2020-10278.pdf?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium=email



https://www.federalregister.gov/documents/2017/06/15/2017-11379/availability-of-funds-and-collection-of-checks


This policy was amended to correct the references made within Section 6 and to clarify the coverage and exception noted in Section 4. (Recommended) 2020-3 Revisions were made to include the new monetary thresholds/limits for funds availability that become effective on July 1, 2020. Please see below for a summary of those changes. (Required)

Policy 2401 – Collection of Checks Procedure 2018-1 The Federal Reserve Board published substantial amendments to Regulation CC that become effective on July 1, 2018. The amendments impacted subparts A (General), C (Collection of Checks) and D (Substitute Checks), essentially modifying current check collection and return requirements to reflect the electronic environment. These changes also apply to existing (and a few new) check warranties and indemnities to checks that are collected and returned electronically and to electronically-created items. The new policy content of Policy 2401 was previously included in Policy 2400. However, we wanted to maintain only the Funds Availability provisions within Policy 2400. The intent in creating Policy 2401 was to provide credit unions either a resource to develop appropriate procedures or to adopt this new policy if they previously relied on the content within Policy 2400. These provisions do not become effective until July 1, 2018. (Optional) 2018-4 This procedure was revised to reflect the recent change in liability between “banks” as to whether a substitute or electronic check contains an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer. Regulation CC was updated to add a rebuttable presumption that the substitute check or electronic check contains an alteration if the original check is not available for inspection. (Recommended)

Policy 2500: Truth in Savings Older Updates: 2014-4, 2015-1

Policy 2600 – Electronic Fund Transfer Older Updates: 2013-3

2017-5 This policy was revised to correct a clerical error. (Recommended) 2020-4

In order to reduce duplicate information, the text in Section 7, International Remittance Transfers, was removed from this policy and replaced with a reference to view Policy 2605 - International Remittance Transfers. Note: if your credit union chooses not to remove the text from Section 7 from this policy, the updates from Policy 2605 should be included in Section 7 of this policy. (Recommended)

https://www.federalregister.gov/documents/2017/06/15/2017-11379/availability-of-funds-and-collection-of-checks

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20180912a.htm


Policy 2605 – International Remittance Transfer Policy Created: 2013-3, 2015-3 2020-4

This policy was updated to comply with the Regulation E changes for International Remittance Transfers. (Required)

Policy 2610: ACH Operations Older Updates: 2013-2, 2013-4, 2014-1

2016-3 NACHA amended their rules, requiring Receiving Depository Financial Institutions (RDFIs) to accept ACH credits as of September 23, 2016. Credit unions had the option to originate Same Day ACH credits for their members. ACH Policies were updated to reflect the Same Day ACH changes and credit unions are encouraged to review and adopt accordingly. (Required) 2017-3 With Phase 2 of Same Day ACH becoming effective on September 17th, this policy was updated to include the addition of ACH debit entries being processed the same day. (Required)

2017-4 Effective on September 29, 2017 the NACHA registry will be available for Credit Union ODFIs to register their Third-Party Senders. NACHA is allowing an implementation period through March 1, 2018 to complete registrations. This policy was revised to reflect the requirement to register these members. (Required)

2018-1 On March 16, 2018, Phase 3 of the Same Day ACH changes became effective for credit unions. This final stage requires credit union Receiving Depositary Financial Institutions (RDFIs) to make funds available from ACH credits and process debits for their members by 5:00pm their local time. This required a policy change from the Phase 2 requirement, which only required same day ACH credits and debits to be processed by the end of their processing day. (Required)

2019-2 This policy was revised to include the changes made by NACHA allowing for same day ACH transactions processed during the first processing window to be made available by 1:30pm local time for the RDFI. This change does not become effective until September 20, 2019. (Recommended) 2020-2 In compliance with the increase in transaction threshold ($25,000 to $100,000) for Same Day ACH transactions that became effective on March 20, 2020, this policy was updated. (Recommended)

Policy 2611: ACH Management

https://www.govinfo.gov/content/pkg/FR-2020-06-05/pdf/2020-10278.pdf?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium=email

https://www.ncua.gov/regulation-supervision/Documents/Letters-to-Credit-Unions/16-CU-06.pdf

https://www.nacha.org/rules/third-party-sender-registration

https://www.nacha.org/rules/providing-faster-funds-availability

https://www.nacha.org/rules/increasing-same-day-ach-dollar-limit


Older Updates: 2012-2, 2013-4, 2014-1 2016-3 NACHA amended their rules, requiring Receiving Depository Financial Institutions (RDFIs) to accept ACH credits as of September 23, 2016. Credit unions had the option to originate Same Day ACH credits for their members. ACH Policies were updated to reflect the Same Day ACH changes and credit unions are encouraged to review and adopt accordingly. (Required) 2014-4 Section 9 was revised to correspond to recent changes to ACH rules to allow for a first payment to be sent three (3) business days after a prenotification, as opposed to the previous six (6) business days credit unions were required to wait. 2017-3 Similar to the changes made to Policy 2610, this policy was updated to include the addition of ACH debit entries being processed the same day. In addition, there were some other minor additions to the policy based on feedback credit unions received during their examinations. (Required) 2017-4 Effective on September 29, 2017 the NACHA registry will be available for Credit Union ODFIs to register their Third-Party Senders. NACHA is allowing an implementation period through March 1, 2018 to complete registrations. This policy was revised to reflect the requirement to register these members. (Required) 2018-1 On March 16, 2018, Phase 3 of the Same Day ACH changes became effective for credit unions. This final stage requires credit union Receiving Depositary Financial Institutions (RDFIs) to make funds available from ACH credits and process debits for their members by 5:00pm their local time. This required a policy change from the Phase 2 requirement, which only required same day ACH credits and debits to be processed by the end of their processing day. (Required) 2019-2 This policy was revised to include the changes made by NACHA allowing for same day ACH transactions processed during the first processing window to be made available by 1:30pm local time for the RDFI. This change does not become effective until September 20, 2019. (Recommended) 2020-2 In compliance with the increase in transaction threshold ($25,000 to $100,000) for Same Day ACH transactions that became effective on March 20, 2020, this policy was updated. (Recommended)

Policy 2612 – ACH Audit Older Updates: 2012-2, 2014-1, 2014-4

2016-3 NACHA amended their rules, requiring Receiving Depository Financial Institutions (RDFIs) to accept ACH credits as of September 23, 2016. Credit unions had the option to originate Same Day ACH credits for their







members. ACH Policies were updated to reflect the Same Day ACH changes and credit unions are encouraged to review and adopt accordingly. (Required) 2017-3 Similar to the changes made to Policy 2610 and Policy 2611, this policy was updated to include the addition of ACH debit entries being processed the same day. (Required) 2017-4 Effective on September 29, 2017 the NACHA registry will be available for Credit Union ODFIs to register their Third-Party Senders. NACHA is allowing an implementation period through March 1, 2018 to complete registrations. This policy was revised to reflect the requirement to register these members. (Required) 2018-1 On March 16, 2018, Phase 3 of the Same Day ACH changes became effective for credit unions. This final stage requires credit union Receiving Depositary Financial Institutions (RDFIs) to make funds available from ACH credits and process debits for their members by 5:00pm their local time. This required a policy change from the Phase 2 requirement, which only required same day ACH credits and debits to be processed by the end of their processing day. (Required) 2019-2 This policy was revised to include the changes made by NACHA allowing for same day ACH transactions processed during the first processing window to be made available by 1:30pm local time for the RDFI. This change does not become effective until September 20, 2019. (Recommended) 2020-2 In compliance with the increase in transaction threshold ($25,000 to $100,000) for Same Day ACH transactions that became effective on March 20, 2020, this policy was updated. (Recommended)

Policy 2615: ATM/Debit Cards Older Updates: 2013-1

2018-3 Policy 2615 was updated with language related to the opt-in process for overdrafts related to ATM and one-time debit card transactions. Language was also updated to provide clarity on error resolution and unauthorized transactions. Credit unions are encouraged to update their policy to also reflect Visa/MasterCard liability and error resolution requirements, as applicable, since the policy addresses only Regulation E requirements. (Recommended)

Policy 2616 – Prepaid Accounts **New Policy 2019-1 Effective on April 1, 2019, Regulation E and Regulation Z were both expanded to provide coverage to prepaid accounts. There is a specific definition of “prepaid accounts” under Regulation E, along with certain exemptions. Before adopting this policy, the credit union should ensure they are offering a prepaid product





under the rules. If so, there are certain requirements the credit union will need to follow, including periodic statements, error resolution and liability, receipts, disclosures, etc. (Recommended if service offered)

Policy 2620 – Remote Deposit Capture Older Updates: 2014-2 2018-1 As noted under the revisions for Policy 2401, the Remote Deposit Capture policy has been updated to reflect the changes within Regulation CC that provide for indemnity protection in the case of restrictive indorsements and language in agreements that allocate liability back to the member when a check was deposited via RDC and losses are incurred as a result of subsequent deposits of the same check. (Recommended)

Policy 2700: Garnishment of Federal Benefit Payments

Older Updates: 2013-2, 2015-1

Policy 2705 –IRS Levies Older Updates: 2012-1, 2015-1

DELETED Policy 3100 – General Accounting Policy. 2016-2 This policy is simply introductory policy and provides little value, so it is being removed from the manual.

Policy 3155 – Travel Reimbursement

2016-1 The Travel Reimbursement Policy was updated to reflect language for Spouse/Friend Travel and Compensation of Non-Exempt Employees for Travel Time. Revisions were also made to the Meals adjustments for allocation of expenses and the requirement of receipts. (Recommended) 2017-4 In order to avoid confusion and duplication within the policy, Section 4B was removed (related to allowance for companion travel) and included with Section 10. Cross-reference was also made in Section 6 to the Credit Union Owned Credit Card Policy (3115). (Recommended) 2018-4 This policy was revised to include restrictions on texting/emailing while driving on credit union business and as prohibited by law and to add the restriction on allowances for companions traveling with representatives unless otherwise authorized. (Recommended)

Policy 3160 – Unclaimed Property 2016-1 Housekeeping changes were made to the Unclaimed Property policy. (Recommended)


2017-4 This policy was revised to remove the record retention requirements and reference the applicable record retention policy. Having one policy to maintain the timeframes for record retention will better mitigate any potential inconsistencies. (Recommended)

Policy 3165 – Loan Workouts and Nonaccrual Standards

Older Updates: 2012-2, 2013-1, 2015-4 2017-1 This policy was revised to correct the requirement to not authorize additional advances to fund unpaid interest and fees under the appropriate “open-end loan” reference in Section 3, B, i. (Recommended) 2017-4 Updates were made in Sections 7 and 8 for clarity and corrections were made for tense and punctuation. (Recommended)

Policy 3170 – Troubled Debt Restructure Older Updates: 2012-2, 2013-1, 2013-2, 2013-4

DELETED POLICY - Policy 3200 - Internal Control 2017-5 In order to start streamlining some of our model policies and eliminating redundant content, we combined all of the Fraud and Internal Control policies (1645, 3200, 3201) into one policy, Policy 1645- Fraud. Credit unions are encouraged to adopt and customize Policy 1645. Policies 3200 (Internal Control) and 3201 (Internal Fraud) will be removed from the Model Policies Manual.

DELETED POLICY - Policy 3201 - Internal Fraud

2017-5 In order to start streamlining some of our model policies and eliminating redundant content, we combined all of the Fraud and Internal Control policies (1645, 3200, 3201) into one policy, Policy 1645- Fraud. Credit unions are encouraged to adopt and customize Policy 1645. Policies 3200 (Internal Control) and 3201 (Internal Fraud) will be removed from the Model Policies Manual.

Policy 4120: Information Security Older Updates: 2012-1, 2014-1, 2014-4 2016-3 This policy was amended to provide additional guidance throughout the policy for both physical security and cyber security considerations. (Recommended) 2019-2 Policy 4120 was updated to include changes related to password complexity, external network connections, new system set up, systems removal and disposal, application development, internet connections and a reference to social media policy requirements. (Recommended)


Policy 4125: Incident Response Older Updates: 2014-4

2016-3 Best practices based on National Institute of Standards and Technology (NIST) guidance, including more detail about incident handling, incident response training, and testing was included in the revisions to the Incident Response policy. More information was also added regarding coordination and approval for the incident response plan. Credit unions are encouraged to adopt this policy and its revisions in order to keep pace with the changing requirements associated with cybersecurity. Note: A supplement to this policy can be found in Resources > TOOLS > Sample Forms and includes a recommended incident response toolkit and common attack methods. (Recommended) 2019-2 This policy was updated to include definitions for determining incident severity and workflows based on the severity of the incident. This policy was also revised include cybersecurity training requirements for both the employees and Board of Directors. The credit union should amend the policy accordingly based on their current program parameters.

Policy 4130 – Kidnap / Hostage / Extortion Policy

Older Updates: 2014-1

Policy 4150 – Workplace Violence Older Updates: 2015-2 2018-4 This policy was revised to remove the previously included definitions and general category limitations. Additional prohibited conduct was added to include bullying. Credit unions may already have this policy as part of their Human Resources Policy Manual or Employee Handbook. If so, this policy should only be maintained in one location to avoid the need for updates in multiple locations. (Recommended)

Policy 4160 – Bomb Threats Policy Created: 2012-1

2019-1 This policy was updated to include the possibility for bomb threats to be received via email and verbally, in person. In addition, a reference was added to include the use of a bomb threat checklist, which can be found on the Department of Homeland Security website, along with many other helpful resources. (Recommended)

Policy 4300 – Computer Security & Control Older Updates: 2014-2

https://www.dhs.gov/sites/default/files/publications/dhs-bomb-threat-checklist-2014-508.pdf

https://www.dhs.gov/what-to-do-bomb-threat


2016-3 NIST References were added to this policy. (Recommended) 2019-2 This policy was updated to remove the dated technology references, added examples under Unauthorized and Destructive Programs and added additional requirements under the Computer Usage section. (Recommended)

Policy 4305 - Configuration Management 2016-3 (Policy Created) This policy outlines a configuration management program, which would guide information system configuration baselines, inventory requirements, configuration changes, and emergency or unscheduled changes. This policy also contains an item with an overview of system virtualization security. This document references Policy 4310 – Patch Management. Please note that several key fields are included in this policy which are also found in Policy 4120, Information Security. As a supplement to this policy, two Appendices have been added to the Resources area (under Tools > Sample Forms) which describe secure configuration considerations and contain a template for change requests from NIST. (Recommended) 2019-2 This policy was updated to add references to https://www.cisecurity.org and https://iase.disa.mil for published baseline security configuration templates. (Recommended)

Policy 4310 – Patch Management 2016-3 NIST References were added to this policy and a reference to the new Change Management Policy was added. (Recommended) 2019-2 Policy 4310 was updated to add additional System Administrator Responsibilities, added references under Identifying Patch Information and also to include emergency updates under Patch Cycle Scheduling. (Recommended)

Policy 4315 – Firewalls Policy Created: 2012-1 2016-3 NIST References were added to this policy. (Recommended)

2019-2 Policy 4315 was updated to include a section on firewall ingress and egress policies, authentication requirements for firewall administrators and auditing recommendations for firewalls. (Recommended)

Policy 4320 – Hardware/Software Acquisition 2016-3

http://www.cisecurity.org/


NIST References were added to this policy and additional maintenance requirements were added to Section 5. (Recommended)

2019-2 This policy was updated to strengthen requirements for purchasing software and hardware, update reference to technology and added supervision criteria for nonlocal maintenance. (Recommended)

Policy 4340 – Remote Access Older Updates: 2012-1 2016-3 NIST References were added to this policy. (Recommended) 2019-2 This policy was updated to add requirements that computers that access the Credit Union network remotely must not be connected to any other networks at the same time and that employees are prohibited from using personal email accounts to conduct Credit Union business. Terminology was also updated throughout the policy. (Recommended)

Policy 4350 – Cloud Computing Policy Created: 2014-2 2016-3 NIST References were added to this policy. (Recommended) 2019-2 Added authentication controls for all internet facing cloud services that host or process member information, employee information or propriety information to be protected by multi-factor authentication and/or IP address restrictions. (Recommended)

Policy 4400 – Change Management Procedures ** New Procedure

2019-2 The Change Management Procedures were created as a result of credit union requests and the expectation of examiners. In addition to the proposed model procedures, the “Change Management Request Form” was also added to the “Resources” section of CU PolicyPro under “Tools” and “Sample Forms.” (Recommended)

Policy 5110 – ALCO Key Objectives 2018-3 This policy was revised to expand on the key objectives and update the guidelines to include a focus on optimizing return on equity. (Recommended)

Policy 5200 – Liquidity Management



2019-2 Because examiner expectations surrounding this policy are increasing, we have expanded the content of this policy to include model liquidity parameters, pre-emptive liquidity risk monitoring provisions, ability to grant policy exceptions, sources of liquidity to utilize in the event of contingency events, and additional sources of contingency funds. (Recommended) 2020-2 Based on the amendment to the NCUA’s rules for public unit and nonmember shares that became effective on January 29, 2020, this policy has been revised to increase the aggregate limit to the greater of 50% of the net amount of paid-in capital and surplus, less any public unit and nonmember shares or $3 million, whichever is greater. (Recommended)

Policy 5205 – Small Asset Liquidity Risk Management Policy Policy Created: 2014-1

Policy 5300: Interest Rate Risk Management Older Updates: 2012-1, 2012-2

Policy 5400 – Capital Management Older Updates: 2014-2

2016-2 Under #2 Calculating the risk based net worth (RBNW) requirement, the language was changed for long term real estate loans to indicate “fixed rate or variable with repricing at less than 5 years” as opposed to the previously listed “3 years.” This is consistent with NCUA regulations. (Recommended)

Policy 5500 - Ownership of Fixed Assets Policy Older Updates: 2013-4, 2015-3

2017-2 The NCUA relaxed their rules on the occupancy requirements for premises acquired for future expansion. Policy 5500 was updated to reflect those changes. (Required)

Policy 6100 – General Investment Policy Older Updates: 2012-1, 2013-1, 2013-2

Policy 6015 – ASC 320 Compliance Older Updates: 2013-1


https://www.ncua.gov/regulation-supervision/Documents/Regulations/final-occupancy-dec-2016.pdf


Policy 6110 – Broker/Dealer Relations Older Updates: 2013-2

Policy 6115 – Concentration Risk Older Updates: 2013-1, 2013-2 2020-2 This policy was reviewed and updated to add more detail. There aren’t any regulatory changes addressed in this revision. (Recommended)

Policy 6120: Investment Accounting Older Updates: 2013-1

Policy 6130 – Investment Controls and Monitoring Older Updates: 2013-1, 2013-2

Policy 6150 – Safekeeping of Investments Older Updates: 2013-2

Policy 6210 – Authorized Investments Older Updates: 2012-2, 2013-2, 2014-2

2016-1 Removed the investment option related to securities or other instruments of the Student Loan Marketing Association or Sallie Mae. (Required) 2016-3 Policy 6210 was revised to amend the permissible investment section to specifically include instruments issued by federally insured institutions such as Yankee dollar deposits, Eurodollar deposits, banker’s acceptances and deposit notes. (Recommended)

Policy 6215 – Derivative Investments Older Updates: 2014-2

Policy 6220 – Non-Deposit Investment Older Updates: 2013-1, 2013-3 2017-3 Similar to the changes made to Policy 2212, this policy was revised to include changes made to the Department of Labor’s expanded definition of a fiduciary under the Conflict of Interest rules that becomes applicable to credit unions on June 9, 2017. (Recommended)



Policy 6300 – Charitable Donation Accounts (NEW POLICY)

2018-3 This is a new policy being created for federal credit unions that are creating charitable donation accounts. The requirements outlined in this policy are governed under NCUA Regulation 721.3(b)(2). Credit unions that maintain charitable donation accounts are required to have a written policy that is reviewed by the Board of Directors at least annually. (Required if maintained)

Policy 7100 – General Lending Policy Older Updates: 2013-2, 2013-4 2017-4 This policy was updated to include general information surrounding preventing and detecting fraud, including the segregation of duties for credit unions using automated underwriting systems. (Recommended)

Policy 7101 – Loans Older Updates: 2013-1, 2013-2

Policy 7105 – Collateral 2016-1 The NCUA finalized changes to part 723 impacting Member Business Loans and Commercial Lending. Although most of the changes in the final rule are not effective until January 1, 2017, the elimination of the personal guarantee requirement becomes effective 60 days after publication in the Federal Register. In order to have the master policy be compliant with the changes to the rules on the effective date, we are updating Section 10, A under Personal Guarantees. (Recommended)

Policy 7115 – Credit Underwriting Standards Older Updates: 2012-1, 2013-1, 2013-4

2016-2 This policy was updated to reflect the need for employment to be verified, only if the credit union relies on employment income when underwriting the loan. Additionally, the language that indicated “credit should not be granted to members with temporary or irregular employment with no source of regular income” was removed. This section was updated to eliminate any potentially perceived fair lending concerns. (Recommended)

Policy 7120 – Fair Lending Older Updates: 2013-2, 2014-3

2017-3 Based on the feedback from credit unions that have undergone a Fair Lending review, more detail was added to Policy 7120 on employee training and the review of complaints by Management. (Recommended)

https://www.ecfr.gov/cgi-bin/text-idx?SID=367b6ef32497c2c11fcc24de8e836b48&mc=true&node=pt12.7.721&rgn=div5#se12.7.721_12

https://www.ncua.gov/Legal/OpinionLetters/OL2002-0520.pdf

https://www.ncua.gov/regulation-supervision/Documents/Regulations/FIR2016218member-business-loans.pdf


2017-4

This policy was updated to correct a reference to NCUA rules. (Recommended) 2020-4

This policy was updated to provide more detail and clarification on the non-discrimination in the lending process. The previous section on “nondiscrimination requirements” which was derived from the NCUA rules was removed and the content combined within the general “non-discrimination in the lending process” which extends beyond just real-estate related loans. Content was also added involving inquiries regarding protected classes, which was taken from Policy 9110 – Equal Credit Opportunity Act – Regulation B. These changes were made as a result of examiner expectations. Note: this policy was extensively revised. Credit unions may find it easier to completely replace their current policy with this revised version and re-customize, if necessary. (Recommended)

Policy 7125 – Loan Application Older Updates: 2013-2, 2013-4, 2013-3, 2015-1, 2015-2

Policy 7130 – Loan Authorization Older Updates: 2013-1, 2014-4

2015-2 The Loan Authorization policy was revised to incorporate approval limits for home equity loans, residential real estate loans and indirect dealer financing, which were previously maintained separately in corresponding policies. The Key Field numbers from the home equity loans, residential real estate loans and indirect dealer financing policies were retained and used in this policy. (Recommended)

Policy 7145 – Loan Limits 2017-5 This policy was revised to comply with the changes made to the NCUA’s Member Business Lending Rules. Existing language prescriptive language for limits on MBLs were removed and reference the Member Business Loans/Commercial Lending policy. (Required if Credit Union conducts Member Business Lending)

Policy 7150 – Loan Portfolio Mix 2017-1 In light of the CFPB’s recent enforcement action against a credit union for practices found to be unfair, deceptive and/or abusive related to debt collection, we have made revisions to this policy. Specifically, we added more detail surrounding language that should be excluded from collections letters and notices, limitations on account restrictions and parameters around communications containing potential legal action. (Recommended)

Policy 7160 – Loans to Insiders Older Updates: 2015-1

http://files.consumerfinance.gov/f/documents/102016_cfpb_NavyFederalConsentOrder.pdf


Policy 7170 – Risk-Based Lending Older Updates: 2014-1, 2015-1

Policy 7180 – Anti-Predatory Lending Policy 2016-2 (Policy Created) Based on requests from Credit Unions who buy and sell loans in the secondary market, an Anti-Predatory Lending Policy was created that reiterates the Credit Union’s commitment to compliance with anti-predatory lending laws. The Policy aggregates content from other existing policies within PolicyPro that address these types of laws and the Credit Union’s compliance. Credit Unions who choose to adopt this policy should make sure the references to the other policies are accurate based on the Credit Union’s own policy manual. (Recommended)

Policy 7175 - Anti-Steering in Lending Practices Policy Policy Created: 2013-4

Policy 7200: Consumer Loans Older Updates: 2013-2, 2013-3

Policy 7210 – Credit Cards Older Updates: 2012-1, 2012-2, 2014-1, 2014-4, 2015-2, 2015-4 2016-2 Every year the CFPB makes changes to the thresholds for certain coverages and safe harbors based on the Consumer Price Index, within Regulation Z. However, this year when the CFPB published those annual changes (which become effective January 1, 2017), they also included a correction in the 2016 penalty safe harbor fee for credit cards that takes effective immediately. As indicated in Regulation Z (1026.52) there is a safe harbor for financial institutions who charge penalty fees less than $27 for the first violation and $38 for a subsequent violation. The $38 was increased from $37, which the CFPB had published at the beginning of 2016. Policy 7210 was amended to reflect this error correction by the CFPB. (Recommended) 2018-3 Each year the permissible fee thresholds for a safe harbor under Regulation Z are adjusted. This year, the fees each increased by one dollar ($28 for the first late payment fee and $39 for each subsequent violation within the following six months). These changes become effective on January 1, 2019. (Required)

DELETED Policy 7211 Credit Cards - Part II

Policy Deleted: 2014-4

Policy 7213 – Military Personnel Loans Older Updates: 2013-1, 2013-4, 2014-1, 2015-3 2016-1

https://www.federalregister.gov/articles/2016/06/27/2016-14782/truth-in-lending-regulation-z-annual-threshold-adjustments-card-act-hoepa-and-atrqm?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov

https://www.federalregister.gov/articles/2016/06/27/2016-14782/truth-in-lending-regulation-z-annual-threshold-adjustments-card-act-hoepa-and-atrqm?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov



As indicated in the last update, the Department of Defense’s revisions to the Military Lending Act (“Limitations on Terms of Consumer Credit Extended to Service Members and Dependents”) became effective on October 1, 2015 and credit union compliance is required by October 3, 2016. Although the policy was revised in the last release to comply with these changes, we are making additional changes to the headings from “Limitations on Terms of Consumer Credit Extended to Service Members and Dependents” to generally reference the Military Lending Act. We believe these changes will be easier to differentiate from the Servicemembers Civil Relief Act and NCUA’s guidance related to our Military members in the policy. (Recommended at this time. Required on October 3, 2016) 2016-3 There were minor changes made to Policy 7213. Changes included utilizing the Military Lending Act acronym (MLA), removing one of the limitations associated with refinancing a consumer credit transaction that was previously extended by the Credit Union, since the MLA specifically identifies an exemption for Credit Unions from this particular provision. There were also grammatical corrections made and revisions to the numbered bullets. (Recommended) 2017-3 This policy was revised to include additional information on the Military Annual Percentage Rate (MAPR) calculation for credit cards with the Military Lending Act, along with the exclusion of certain bona fide, reasonable fees. Compliance is mandatory as of October 3, 2017. (Required)

2018-3 Added language to clarify the timing requirements for SCRA protections for reservists. It is now clarified that protections begin for reservists on the date orders are received, rather than the active duty date for other military personnel. As a result of the National Defense Authorization Act signed in to law on August 13, 2018, the policy was updated to add a safe harbor alternative for verifying active duty status, in lieu of waiting for the servicemember to provide documentation and evidence for a corresponding rate reduction of loans incurred prior to active duty status. (Recommended)

Policy 7215: Overdrafts (Courtesy Pay) Older Updates: 2012-1

2018-3 Although not a requirement, this policy was revised to add “best practices.” Credit unions should consider their current overdraft practices and adopt corresponding language within their policy that is consistent with their overdraft program. (Recommended) 2019-1 We are hearing from credit unions that overdraft programs are under significant examiner scrutiny. We wanted to strengthen the policy to include additional best practices, as outlined in NCUA Letter 05-CU-03. However, credit unions should keep in mind that because there is significant program variations in our industry, we tried to make general statements. For example, we mention “The Credit Union will define and



https://www.federalregister.gov/documents/2015/07/22/2015-17480/limitations-on-terms-of-consumer-credit-extended-to-service-members-and-dependents

https://www.congress.gov/bill/115th-congress/house-bill/5515/text

https://www.ncua.gov/files/letters-credit-unions/LCU2005-03.pdf


monitor excessive overdraft protection usage.” While, we don’t define what that is, the credit union should either customize the policy accordingly or have a corresponding procedure that includes more detailed definitions that drives your processes. (Recommended) 2020-2 This policy was reviewed and updated to provide more information on disclosure requirements, specifically for defining the balance method used for determining overdrafts that the credit union is using and ensuring that disclosures and practices are consistent. Additionally, wording was revised in regards to negative balances to reference the credit union’s policy for membership expulsion/termination of services. (Recommended)

DELETED Policy 7217 – Payday Lending 2019-3 This policy was very similar to Policy 7218. The content from this policy was moved to 7218 and this policy has been deleted from CU PolicyPro.

Policy 7218 – Payday Alternative Loans (NEW TITLE) Older Updates: 2012-1, 2014-3

2019-3 Policy 7218 was updated to reflect the new loan alternative that was recently approved by the NCUA and becomes effective 60 days after publication in the Federal Register. Also, the content of Policy 7217 was added to this policy (7217 has been removed from CU PolicyPro). (Recommended)

Policy 7240: Student Loans Older Updates: 2013-2 2018-4 This policy was changed to reflect the changes made to the Truth in Lending Act impacting student loans, as a result of the passage of S. 2155, Economic Growth, Regulatory Relief and Consumer Protection Act. Credit unions should keep in mind that Regulation Z, the implementing regulation for the Truth in Lending Act, has not yet been updated as a result of these changes. Therefore, the policy amendments are based on direct interpretations from the change in law and may need to be amended when the regulation is revised in more context and interpretation is provided. (Recommended)

Policy 7244 –Integrated Mortgage Disclosures Older Updates: 2015-2

Policy 7245 – Truth in Lending Disclosures for Closed-End Credit Older Updates: 2012-2, 2013-2, 2013-4, 2014-1, 2015-2

Policy 7250 – Truth in Lending Disclosures for Open-End Credit Older Updates: 2013-2, 2013-3, 2014-4


Policy 7251: Regulation Z – Home Equity Plans Older Updates: 2013-2, 2013-3, 2014-1, 2014-4

Policy 7260 – Multi-Featured Lending Programs


Policy 7270 – Skip Payment Program Policy Created: 2012-2

DELETED Policy 7300 – Real Estate Loans

2016-2 This policy is simply introductory policy and provides little value, so it is being removed from the manual.

Policy 7301: Registration of Mortgage Loan Originators (S.A.F.E. Act) Older Updates: 2013-2, 2013-3, 2014-1, 2014-2, 2014-3, 2014-4, 2015-1 2016-1 Revisions to this policy were made in Section 5 regarding the use of the Unique Identifier. In addition to including the Loan Originators name and unique identifier on the Credit Application, Note or Loan Contract and Security Instrument, there is also a requirement to add the same information to the Loan Estimate and Closing Disclosure. Additionally, more detail was added in Section 2 for Mortgage Loan Originator’s Qualifications to include the credit union’s requirement as part of Regulation Z to ensure the Loan Originator has not been convicted or pleaded guilty to a felony, has demonstrated financial responsibility and receives appropriate training. (Recommended)

Policy 7302: Real Estate Appraisals Older Updates: 2013-4, 2014-1, 2014-2, 2015-2 2019-3 Policies 7302 and 7303 were both updated to reflect the NCUA’s recent changes to the appraisal rules in Part 722. These provide for additional exemptions and also for additional definitions under the rules. (Recommended) 2020-2 This policy was updated to reflect the change in threshold level below which appraisals are not required for residential real-estate related transactions from $250,000 to $400,000. This final rule was passed by the NCUA and becomes effective upon publication in the Federal Register which we anticipate being before April 30, 2020. (Recommended)

Policy 7303 - Real Estate Appraisals - Appendices 2019-3 Policies 7302 and 7303 were both updated to reflect the NCUA’s recent changes to the appraisal rules in Part 722. These provide for additional exemptions and also for additional definitions under the rules. (Recommended)

https://www.ncua.gov/files/agenda-items/AG20200416Item4b.pdf


2020-2 This policy was updated to reflect the change in threshold level below which appraisals are not required for residential real-estate related transactions from $250,000 to $400,000. This final rule was passed by the NCUA and becomes effective upon publication in the Federal Register which we anticipate being before April 30, 2020. (Recommended)

Policy 7310 – Construction Loans 2017-2 This policy was revised to include additional considerations when approving construction loans and also compliance with the integrated mortgage disclosures. (Recommended)

Policy 7315: Commercial Real Estate Loan Workouts. Older Updates: 2013-3 2016-3 Policy 7315 was reviewed to ensure revisions related to the new NCUA rules on member business lending and commercial loans was not warranted. There were only minor grammatical revisions made to this policy. (Recommended)

Policy 7320 – Home Equity Loans Older Updates: 2013-4, 2014-3, 2014-4, 2015-2

Policy 7330: Residential Real Estate Loans Older Updates: 2012-1, 2012-2, 2013-2, 2013-4, 2014-1, 2014-2, 2014-3, 2014-4, 2015-2, 2015-2 2016-1 Changes were made to this policy under the Flood Insurance section to clarify that the new rules require flood insurance premiums to be escrowed (whether or not the credit union already escrows taxes and insurance) unless they qualify for an exemption. (Required) 2019-1 The NCUA issued final rules impacting private flood insurance that become effective on July 1, 2019. These changes essentially require credit unions to accept private flood insurance that meet the definition under the rules and have the option of accepting private flood insurance that might fall outside of the definition. Credit unions should plan to update their policy and corresponding procedures to comply with the July 1, 2019 effective date. (Required if offered) 2020-1 As a result of the passing of the Taxpayers First Act, credit unions (effective on December 28, 2019) are required to obtain written authorization from their member prior to sharing tax information with another party. The policy was updated to reflect this requirement. (Recommended)

https://www.ncua.gov/files/agenda-items/AG20200416Item4b.pdf

https://www.ncua.gov/files/publications/regulations/loans-special-flood-hazards-feb-2019.pdf


Policy 7331: Non Traditional Residential Real Estate Loans. Older Updates: 2013-4, 2014-4 2020-1 As a result of the passing of the Taxpayers First Act, credit unions (effective on December 28, 2019) are required to obtain written authorization from their member prior to sharing tax information with another party. The policy was updated to reflect this requirement. (Recommended)

Policy 7332: Loan Originator Compensation (new title) Older Updates: 2013-4, 2014-2, 2015-1

Policy 7335: Loans Secured by Unimproved Property Older Updates: 2014-4

Policy 7350 – Ability to Repay Policy

Older Updates: 2013-4, 2014-3, 2014-4, 2015-4

2017-1 Policy 7350 was revised to comply with the annual changes made to the points and fee thresholds based on the Consumer Price Index. (Required)

2017-5 Policy 7350 was revised to comply with the annual changes made to the points and fee thresholds to determine if a mortgage is considered a qualified mortgage under the rules, based on the Consumer Price Index. (Required)

2018-3 Policy 7350 was revised to comply with the annual changes made to the points and fee thresholds to determine if a mortgage is considered a qualified mortgage under the rules, based on the Consumer Price Index. These changes become effective on January 1, 2019. (Required) 2020-1 Policy 7350 was revised to comply with the annual changes made to the points and fee thresholds to determine if a mortgage is considered a qualified mortgage under the rules, based on the Consumer Price Index. These changes became effective on January 1, 2020. (Required)

Policy 7351 – Small Creditor Ability to Repay Policy Older Updates: 2013-4, 2014-1, 2014-3, 2014-4, 2015-4

2016-1 On March 22, 2016 the CFPB published a final rule that becomes effective on March 31, 2016 and amends Regulation Z regarding the eligibility of small creditors that operate in rural or underserved areas to underwrite balloon payment qualified mortgage. Previously, the requirement was that the credit union was

https://www.federalregister.gov/documents/2016/06/27/2016-14782/truth-in-lending-regulation-z-annual-threshold-adjustments-card-act-hoepa-and-atrqm



https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16300.pdf?utm_source=federalregister.gov&utm_medium=email&utm_campaign=subscription+mailing+list

http://files.consumerfinance.gov/f/201603_cfpb_operations-in-rural-areas-under-the-truth-in-lending-act-regulation-z-interim-final.pdf


required to originate more than 50% of their covered loans to rural or underserved areas. The CFPB’s final rule amends that and allows a small creditor to underwrite a balloon payment qualified mortgage if they originated either one covered transaction on a property located in a rural or underserved area in the previous calendar year, or during either of the two preceding calendar years if the application is received before April 1 of the current calendar year. (Recommended)

2017-1 Similar to Policy 7350, this policy was also revised to comply with the annual changes made to the points and fee thresholds based on the Consumer Price Index. (Required)

2017-5 Similar to Policy 7350, this policy was also revised to comply with the annual changes made to the points and fee thresholds based on the Consumer Price Index. (Required)

2018-3 Similar to Policy 7350, this policy was also revised to comply with the annual changes made to the points and fee thresholds based on the Consumer Price Index. (Required) 2020-1 Similar to Policy 7350, this policy was also revised to comply with the annual changes made to the points and fee thresholds based on the Consumer Price Index. (Required) 2020-4

A suggestion was made to include the actual asset size, which is adjusted each year by the CFPB for inflation each year, in the policy to provide more clarity for credit unions who are considered small creditors under the rule. The policy was adjusted accordingly for 2020 and will be updated annually, along with the points and fee caps. (Recommended)

Policy 7360 – Mortgage Servicing Policy Policy Created: 2013-4, 2015-2 2017-3 Policy 7360 was revised to incorporate the first set of changes to the CFPB’s Mortgage Servicing rules that become effective on October 19, 2017. In order to assist credit unions prepare and obtain Board approval, this policy was revised ahead of the effective date, but shouldn’t be adopted by the Board until the effective date. (Required)

2018-1 Mortgage Servicing rules, implemented by Regulation Z (TILA) and Regulation X (RESPA), were updated with changes effective on both October 19, 2017 and April 19, 2018. While the policy was previously updated to include the changes effective in October of last year, the changes to the policy in this update reflect the changes necessary for the April 19, 2018 effective date. (Required) 2020-1









https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/amendments-2013-mortgage-rules-under-real-estate-settlement-procedures-act-regulation-x-and-truth-lending-act-regulation-z/

https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/


As a result of the passing of the Taxpayers First Act, credit unions (effective on December 28, 2019) are required to obtain written authorization from their member prior to sharing tax information with another party. The policy was updated to reflect this requirement. (Recommended)

Policy 7361 – Small Servicer Mortgage Servicing Policy Policy Created: 2013-4, 2015-2 2017-3 Policy 7361 was revised to incorporate the first set of changes to the CFPB’s Mortgage Servicing rules that become effective on October 19, 2017. In order to assist credit unions prepare and obtain Board approval, this policy was revised ahead of the effective date, but shouldn’t be adopted by the Board until the effective date. (Required)

2017-5 In our June 2017 updates to comply with the new mortgage servicing rules, Section 5 related to the “Mortgage

Servicing Transfer Notice” was removed. However, this section would be applicable to Small Servicers only if

they acquire ownership of a mortgage loan and subsequent servicing rights of an affiliate. Therefore, we have

added this section back in to the model policy. Note: This policy was updated in the Model Policies between

updates, on October 25, 2017. (Required if conducted)

2018-1 Mortgage Servicing rules, implemented by Regulation Z (TILA) and Regulation X (RESPA), were updated with changes effective on both October 19, 2017 and April 19, 2018. While the policy was previously updated to include the changes effective in October of last year, the changes to the policy in this update reflect the changes necessary for the April 19, 2018 effective date. (Required) 2020-1 As a result of the passing of the Taxpayers First Act, credit unions (effective on December 28, 2019) are required to obtain written authorization from their member prior to sharing tax information with another party. The policy was updated to reflect this requirement. (Recommended)

Policy 7362 – Temporary Policy for Loan Modifications and Reporting (NEW POLICY) 2020-2 This is another temporary policy created to assist credit unions with the combined interagency guidance that has

been issued related to loan modifications for borrowers, mortgage servicing, credit reporting, accounting

treatment, etc. New content continues to be added to this policy in order for credit unions to remain compliant

and understand the multitude of relief opportunities available. This policy was updated for a third time on

5/1/2020 to provide additional context regarding the Right of Rescission Rules and Changed Circumstance

clarification under TRID. Additional information was also added regarding relief for written valuations under

the Equal Credit Opportunity Act. (Recommended)

2020-3

https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/amendments-2013-mortgage-rules-under-real-estate-settlement-procedures-act-regulation-x-and-truth-lending-act-regulation-z/

https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/


This policy was revised to include the additional repayment option for borrowers who have federally-backed mortgage loans, when their forbearance period ends. This guidance was issued by the Federal Housing Finance Agency on May 13, 2020 and begins on July 1, 2020. (Recommended) 2020-4 This policy was updated to reflect the interim final rule regarding the treatment of certain COVID-19 related loss mitigation options under RESPA. Effective on July 1, 2020, this rule provides an additional option for credit unions to provide borrowers loss mitigation options related to the COVID-19 emergency when it is deemed to be an “incomplete loss mitigation application” under the existing rules. (Recommended)

Policy 7370 – HOEPA Rule Requirement Policy Older Updates: 2013-4, 2014-1, 2015-1, 2015-4 2016-1 On March 22, 2016 the CFPB published a final rule that becomes effective on March 31, 2016 and amends Regulation Z regarding the eligibility of small creditors that operate in rural or underserved areas to underwrite balloon payment qualified mortgage. Consistent with the revisions made to the Small Creditor Ability to Repay exemptions in Policy 7351, high-cost mortgages are permissible for small creditors that serve rural or underserved areas. The word “predominately” was removed from this policy consistent with the changes being made to Regulation Z. (Recommended) 2017-1 The thresholds for determining if a loan is covered under HOEPA were also adjusted for January 1, 2017 and these amounts were updated in the policy accordingly. (Required)

2017-5 The thresholds for determining if a loan is covered under HOEPA were also adjusted for January 1, 2018 and these amounts were updated in the policy accordingly. (Required)

2018-3 The thresholds for determining if a loan is covered under HOEPA were also adjusted for January 1, 2019 and these amounts were updated in the policy accordingly. (Required) 2020-1 The thresholds for determining if a loan is covered under HOEPA were also adjusted for January 1, 2020 and these amounts were updated in the policy accordingly. (Required)

DELETED Policy 7400 – Other Types of Loans


Policy 7410 – Indirect Dealer Financing

https://files.consumerfinance.gov/f/documents/cfpb_interim-final-rule_respa_covid-19-related-loss-mitigation-options.pdf








Policy 7420 – Member Business Loans Older Updates: 2012-2, 2013-1, 2013-3, 2015-3, 2015-4

2016-1 The NCUA finalized changes to part 723 impacting Member Business Loans and Commercial Lending. Although most of the changes in the final rule are not effective until January 1, 2017, the elimination of the personal guarantee requirement becomes effective 60 days after publication in the Federal Register. In order to have the master policy be compliant with the changes to the rules on the effective date, we are updating Section 10, A under Personal Guarantees. In addition, the escrow requirement under Flood Insurance were revised. Escrow rules exempt loans secured by residential real estate or a mobile home that is used as collateral for a business, commercial or agricultural purpose from the mandatory escrow requirements for flood insurance. (Recommended) 2016-3 This policy was significantly revised to comply with the NCUA’s changes made to sections 723 and 701 of their rules related to member business loans and commercial lending that become effective on January 1, 2017. One of the major changes to the rules was the exemption of credit unions with assets under $250 million, with commercial loan portfolios plus commercial loans sold but serviced less than 15% of its total net worth, and in any given calendar year has originated and sold and no longer service commercial loans that in aggregate are less than 15% of its net worth, from the policy and Board and Management responsibilities outlined in the regulation. The policy was also revised to reflect the new definitions within the regulation, new provisions associated with construction and development loans, new requirements associated with credit risk ratings of loan portfolios and changes regarding associated experience with personnel engaged in commercial lending at the Credit Union. (Required if not otherwise exempt) 2018-2 This policy was updated in order to reflect the changes made to NCUA rules Part 723.8 which now excludes from the definition of a member business loan (and subject to the aggregate MBL lending cap) an extension of credit fully secured by a lien on a 1- to 4-family dwelling (regardless of borrower’s occupancy status). (Required if offered) 2019-1 The NCUA issued final rules impacting private flood insurance that become effective on July 1, 2019. These changes essentially require credit unions to accept private flood insurance that meet the definition under the rules and have the option of accepting private flood insurance that might fall outside of the definition. Credit unions should plan to update their policy and corresponding procedures to comply with the July 1, 2019 effective date. (Required if offered)

Policy 7425: Member Business Credit Cards Older Updates: 2014-1

Policy 7430 – Participation Loans

https://www.ncua.gov/regulation-supervision/Documents/Regulations/FIR2016218member-business-loans.pdf


https://www.ncua.gov/files/publications/regulations/loans-special-flood-hazards-feb-2019.pdf


Older Updates: 2013-1, 2013-3, 2013-4, 2014-1

Policy 7435 – Small Business Administration (SBA) Loans (NEW POLICY)

2018-3 Because more credit unions are engaging in SBA lending programs, CU PolicyPro has created this model policy for consideration. Please note that, like all model policies, the credit union will need to amend this model policy based on their actual program. Additionally, the credit union will need to ensure that this policy aligns to their general lending policy and should build applicable procedures to support it. (Recommended)

Policy 7436 – CARES Act – Small Business Administration (SBA) Loans

**New Policy** 2020-2 This is a temporary policy created to assist credit unions who are offering paycheck protection program (PPP) loans to their members as part of the CARES Act. In addition, there are other SBA considerations noted in this policy to assist credit unions with applicable SBA relief options. (Recommended) 2020-3 This policy was revised based on their recent publication of two interim final rules (Requirements for Loan Forgiveness and Review Procedures and Related Borrower and Lender Responsibilities) that were issued to provide more clarity on processing loan forgiveness applications for borrowers. (Recommended) 2020-4 This policy was revised to include the revisions made as a result of the Paycheck Protection Program Flexibility Act of 2020, which were outlined in the first interim final rule issued on June 10th and the additional revisions to the first interim final rule issued on June 12th. (Recommended)

Policy 7437 – Main Street Lending – Federal Reserve Program **New Policy**

2020-2 This policy was created to assist credit unions who will be offering loans through the Main Street Lending Program administered by the Federal Reserve. Note: this policy was not included in the original publication of update 2020-2. The published date for this policy is 5/5/2020. (Recommended if offered)

DELETED Policy 7500 – Collections


Policy 7510 – Collection Process

https://home.treasury.gov/system/files/136/PPP-IFR-Revisions-to-First-Interim-Final-Rule.pdf

https://www.sba.gov/sites/default/files/2020-06/PPP-IFR-Revisions-to-First-Interim-Final-Rule_06%2012%2020.pdf

https://www.sba.gov/sites/default/files/2020-06/PPP-IFR-Revisions-to-First-Interim-Final-Rule_06%2012%2020.pdf


Older Updates: 2013-4 2016-2 Policy 7510 was updated to include the requirements within the Military Lending Act that become effective on October 3, 2016 that prohibit a credit union from taking a security interest in funds deposited after the extension of credit, in an account established in connection with the credit transaction. As a reminder, policy 7213 – Military Personnel Loans was already updated to reflect this change, along with the other provisions of the Military Lending Act. (Recommended) 2017-1 In light of the CFPB’s recent enforcement action against a credit union for practices found to be unfair, deceptive and/or abusive related to debt collection, we have made revisions to this policy. Specifically, we added more detail surrounding language that should be excluded from collections letters and notices, limitations on account restrictions and parameters around communications containing potential legal action. (Recommended) 2018-4 This policy was revised to remove the reference to delaying personal contact under #3 until the 20th and 35th day of delinquency. For many credit unions, this time period is not relevant and we have received feedback that examiners are taking issue with that particular length of time. (Recommended)

Policy 7520 – Collections Staff Members and Responsibilities

2017-1 In light of the CFPB’s recent enforcement action against a credit union for practices found to be unfair, deceptive and/or abusive related to debt collection, we have made revisions to this policy. Specifically, we included provisions on training/education, disciplinary action for violations of policy and also the prohibition of insinuating the credit union provides any form of credit “repair” services. (Recommended) 2017-2 Policy 7520 was revised to correct an error in “Training/Education” (section 5) that incorrectly indicated that collection staff would receive “regulator” training. The sentence should indicate that collection staff will receive “regular” training that is tailored to the relevant employee and the specific responsibilities of their role. (Recommended)

Policy 7600 – Loan Review and Classification Older Updates: 2013-1

Policy 7615 – Allowance for Loan and Lien Losses Older Updates: 2013-1

Policy 7616: Loan Extensions Older Updates: 2013-3

https://www.federalregister.gov/articles/2015/07/22/2015-17480/limitations-on-terms-of-consumer-credit-extended-to-service-members-and-dependents




Policy 7625 - Residential Real Estate Loss Mitigation Strategies Older Updates: 2008-2, 2010-3, 2013-3, 2013-4, 2014-1

Policy 7630 – Multi-Dimensional Loan Portfolio Analysis


Policy 8100 – General OREO Older Updates: 2013-2, 2014-1 2017-3 Policy 8100 was revised to coincide with NCUA’s Letter to Credit Unions (08-CU-25). While there was no regulatory changes, the holding period was revised to remove the previous 3 year timeframe, establishing a best practice of 12 months, with the ability to retain property longer if risks are assessed and properly mitigated. (Recommended)

Policy 8120 – Eviction of OREO Inhabitants (Title Change) Older Updates: 2014-4

DELETED Policy 9100 - Electronic Fund Transfer – Reg E This section has been deleted from the manual. This decision was reached due to the fact that all of the information related to Regulation E is contained within one of the operational policies within the manual. It is easier to maintain this information in a single policy only rather than maintaining it in two places. The information related to Regulation E can be found policy 2615 (ATM-Debit Cards)

Policy 9110 – Equal Credit Opportunity Act – Regulation B Older Updates: 2012-1

Policy 9120 – Fair Debt Collection Practices Act 2014-2 The Fair Debt Collection Practices Act Policy has been amended for grammatical and consistency changes. (Correction) 2017-1 In light of the CFPB’s recent enforcement action against a credit union for practices found to be unfair, deceptive and/or abusive related to debt collection, we have made revisions to this policy, inclusive of the applicability and examples of prohibited activities for credit unions collecting their own debts. (Recommended)

Policy 9130 – Holder in Due Course Older Updates: 2012-2


http://files.consumerfinance.gov/f/201307_cfpb_bulletin_unfair-deceptive-abusive-practices.pdf


Policy 9150 – Unfair, Deceptive, or Abusive Acts or Practices Older Updates: 2014-1, 2015-4 2018-3 Because of the constant scrutiny and subjectivity of the Unfair, Deceptive, or Abusive Acts or Practices Act, we are making minor revisions to strengthen our policy. (Recommended)

Policy 9200: Home Mortgage Disclosure Act Older Updates: 2012-1, 2013-1, 2013-4, 2014-1, 2014-2, 2014-4, 2015-2 2017-1 Significant amendments to the Home Mortgage Disclosure Act (HMDA) become effective in January, 2018 including the types of institutions covered, types of transactions that are covered, specific information that covered institutions are required to collect, record and report and the processing for reporting and disclosing data. However, there is one provision of HMDA that becomes effective on January 1, 2017 and that is the definition of a financial institution. That new definition has been incorporated in the updated Policy 9200. The asset size threshold for coverage has not changed for 2017 and remains at $44 million. (Required) 2017-4 Policy 9200 was revised to comply with the HMDA changes that are scheduled to become effective on January 1, 2018. In order to assist credit unions prepare and obtain Board approval, this policy was revised ahead of the effective date, but shouldn’t be adopted by the Board until the actual effective date. NOTE: Policy 9200 was revised so extensively that essentially the entire policy was re-written. Because of this, a redlined version is not being provided. (Required) 2017-5 Policy 9200 was significantly revised in our last update to comply with the HMDA changes that are scheduled to become effective on January 1, 2018. The revisions in this update are based on feedback to incorporate additional definitions for MSA and MDs and to make one correction in section 10 (A). The asset size threshold for coverage has not yet been published for 2018. Credit unions are encouraged to watch for that publication from the CFPB and update their policy accordingly. We will issue a revised policy in our next quarterly update. (Recommended) 2018-3 On August 31, 2018, the Bureau of Consumer Financial Protection (BCFP or CFPB) issued an interpretive and procedural rule to amend certain provisions of the Home Mortgage Disclosure Act (HMDA) impacted by the passage of S. 2155 (Economic Growth, Regulatory Relief, and Consumer Protection Act). The “interpretive and procedural rule” among a few other things, clarifies and reduces the amount of data points that credit unions will be required to report if they qualify for a partial exemption. This policy was updated to reflect the revised data points for credit unions to report if they qualify for the partial exemption under the rule. (Recommended) 2019-1


https://www.federalregister.gov/documents/2015/10/28/2015-26607/home-mortgage-disclosure-regulation-c

https://www.federalregister.gov/documents/2015/10/28/2015-26607/home-mortgage-disclosure-regulation-c




This policy was revised to reflect the annual threshold changes for exemption under the home mortgage disclosure act. The threshold has been changed to exempt credit unions that are under $46 million in assets as of December 31, 2018. (Recommended) 2020-1 This policy was updated to reflect the annual threshold change to determine asset size coverage for the rule, which was an increase to $47 million in 2020, from $46 million. Credit unions with assets below $47 million, as of December 31, 2019 will not be required to report HMDA data. (Required) 2020-3 Revisions were made to update the threshold change for reporting HMDA data on closed-end mortgage loans, which increases to 100 from 25. Credit unions that originated fewer than 100 closed-end loans in either of the two preceding calendar years will not have to report that data, effective on July 1, 2020. (Required)

Policy 9210 – Real Estate Settlement Procedures Act – HUD Regulation X Older Updates: 2015-2 2018-4 Revised this policy to remove an erroneous reference to RESPA coverage for chattel loans that was not previously removed in all sections of the policy in the last update. (Recommended) 2019-3 This policy was updated to remove the requirement to provide the Special Information Booklet for reverse mortgage transactions. The requirement to provide this booklet now falls under Regulation Z for those related transactions, so wouldn’t be applicable under this policy. (Recommended)

Policy 9220: Home Ownership and Equity Protection Act Older Updates: 2013-1, 2013-2, 2013-4, 2014-3, 2014-4, 2015-4

2016-1 On March 22, 2016 the CFPB published a final rule that becomes effective on March 31, 2016 and amends Regulation Z regarding the eligibility of small creditors that operate in rural or underserved areas to underwrite balloon payment qualified mortgage. Consistent with the revisions made to the Small Creditor Ability to Repay exemptions in Policy 7351, high-cost mortgages are permissible for small creditors that serve rural or underserved areas. The word “predominately” was removed from this policy consistent with the changes being made to Regulation Z. (Recommended) 2017-5 Similar to the changes made to Policy 7370, this policy was also revised to adjust the thresholds for determining if a loan is covered under HOEPA, effective January 1, 2018. (Required) 2018-3





Similar to the changes made to Policy 7370, this policy was also revised to adjust the thresholds for determining if a loan is covered under HOEPA, effective January 1, 2019. (Required) 2020-1 Similar to the changes made to Policy 7370, this policy was also revised to adjust the thresholds for determining if a loan is covered under HOEPA, effective January 1, 2020. (Required)

DELETED - Policy 9300 - Bank Bribery Act 2020-2 To avoid redundancy, this policy was deleted, with the associated required content included in Policy 1620 – Code of Ethics. (Recommended)

DELETED - Policy 9330 – Right to Financial Privacy Act Older Updates: 2015-4

Policy 9400 – Equal Employment Opportunity 2018-4 This policy was completely updated and revised. Credit unions may already have this policy as part of their Human Resources Policy Manual or Employee Handbook. If so, this policy should only be maintained in one location to avoid the need for updates in multiple locations. Note: The content of this policy was reorganized and changed extensively, therefore, no redlined version is available. (Recommended)

DELETED - Policy 9410: Regulation CC This policy is being replaced by Policy 2400, Funds Availability - Regulation CC. If your manual has Policy 9410 but not 2400, you should remove 9410 and adopt 2400. If your manual has both 9410 and 2400, you should remove 9410 and adopt in its entirely the new 2400 updated policy.

Policy 9420 – Reserve Requirements/Regulation D Older Updates: 2012-1, 2013-1, 2014-3, 2014-4, 2015-1, 2015-4 2016-3 Removed the reference to credit unions maintaining “sterile reserves,” under Regulation D. (Recommended) 2017-1 Thresholds are changed annually to reflect the annual indexing of the reserve requirement exemption amount. The policy has been revised to reflect those changes within the policy and effective for 2016. (Required) 2017-5 Thresholds are changed annually to reflect the annual indexing of the reserve requirement exemption amount. The policy has been revised to reflect those changes within the policy and are effective for 2018. (Required)





https://www.federalreserve.gov/newsevents/press/bcreg/bcreg20161027a1.pdf

https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20171103a1.pdf


2018-4 Thresholds are changed annually to reflect the annual indexing of the reserve requirement exemption amount. The policy has been revised to reflect those changes within the policy and are effective for 2019. (Required) 2020-1 Thresholds are changed annually to reflect the annual indexing of the reserve requirement exemption amount. The policy has been revised to reflect those changes within the policy and are effective for 2020. (Required) 2020-4

This policy was revised to reflect the changes made to Regulation D to eliminate the previous six-transfer limit and the reduction of all reserve ratios to 0%. (Recommended)

DELETED - Policy 9440 - Electronic Signatures In Global & National Commerce 2015-4 The Electronic Signatures in Global & National Commerce policy was combined with the Electronic Signatures Policy (2227) in order to have one cumulative policy dealing with the requirements for the credit union’s use of electronic signatures. Model policy 9440 has been deleted. (Recommended)

Policy 9500 – Americans with Disabilities Act 2018-4 Section 1 of this policy related to the employment provisions of the Americans with Disabilities Act (ADA), Title 1, was completely revised and updated. Note: The content of this policy was reorganized and changed extensively, therefore, no redlined version is available. (Recommended)

Policy 9600 – Telephone Consumer Protection Act and Junk Fax Prevention Act 2015-4 In July of this year, the Federal Communications Commission issued a Declaratory Ruling and Order to provide clarification on the Telephone Consumer Protection Act. The Junk Fax Prevention Act amended the Telephone Consumer Protection Act, therefore, we wanted to change the title of the Policy to reflect “Telephone Consumer Protection Act and Junk Fax Prevention Act.” The credit union has requirements to comply with under both, however with faxes being used less frequently, we thought it was important to update this report based on the new declaratory ruling to assist credit unions with compliance. (Recommended)

Policy 10001: Record Retention Table 1 – Corporate Records Older Updates: 2013-3, 2014-1

2016-2 The citation for records supporting examinations from CTRs was updated from 31 CFR Chapter 103, to 31 CFR Chapter X. (Recommended)



https://www.federalregister.gov/documents/2020/04/28/2020-09044/regulation-d-reserve-requirements-of-depository-institutions

https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-72A1.pdf


2016-3 Removed the reference to the National Credit Union Administration (NCUA) under the Risk Based Pricing Notices section because Regulation V, which implements the Fair Credit Reporting Act is issued by the Consumer Financial Protection Bureau (CFPB). (Recommended) 2017-1 The record retention table for Corporate Records was revised with the correct citations for the permanent record retention of Supervisory Committee audit reports and associated records of account verifications. The retention for the “Supervisory Committee Records of Account Verification” was changed from “until next verification” to “permanent to correspond with Appendix A of Part 749 in NCUA’s rules.” NCUA rules (715.8) related to the record retention for the Supervisory Committee indicates their requirement to retain the records of each verification of members’ passbooks and accounts until it completes the next verification. However, the credit union must retain those records permanently according to Part 749. (Required) 2018-3 Policy 10001 was updated to clarify that the permanent record retention reference to “Credit Union Policies” was related to “Credit Union Insurance Policies,” which is identified in 749.1 as a vital record. (Recommended)

Policy 10002– Record Retention Table 2 – Collection and Delinquency Records Older Updates: 2012-2 2017-4 This policy was revised to include the correct citations for retention timeframes. Additionally, the requirement to retain paid collection files was increased to 7 years after the debt is paid. (Required)

Policy 10003 – Record Retention Table 3 Older Updates: 2012-2

Policy 10004: Record Retention Table 4 – Electronic Funds Transfer Records Older Updates: 2013-2, 2013-3 2015-3 ATM activity reports were added to the record retention log with the term of 2 years in compliance with the Regulation E. (Recommended) 2016-2 The citations that reference 31 CFR Chapter 103 were all updated to reflect the current citation of 31 CFR Chapter X. (Recommended) 2017-4

http://www.ecfr.gov/cgi-bin/text-idx?SID=060b8e4fbf064b0519c68a50eed6f5a4&mc=true&node=pt12.7.749&rgn=div5#ap12.7.749_15.a

http://www.ecfr.gov/cgi-bin/text-idx?SID=4d775244a75c3223775caef6f948ecdf&mc=true&node=pt12.7.715&rgn=div5#se12.7.715_18


This policy was revised to include the correct citation under NACHA Rules for certain ACH transactions. (Recommended)

Policy 10005: Record Retention Table 5 – General Accounting Records Older Updates: 2013-3, 2014-1

2016-2 The citations that reference 31 CFR Chapter 103 were all updated to reflect the current citation of 31 CFR Chapter X. (Recommended) 2017-4 This policy was revised to coincide with NCUA Rules part 749 related to the permanent retention of vital records, which include a list of the credit union’s investments. Timeframes were also adjusted to 5 years to comply with BSA record retention requirements and 3 years to comply with the Fair Labor Standards Act requirements for certain records. (Required)

Policy 10006 – Record Retention Table 6 – Insurance & Bond Records Older Updates: 2014-1 2017-4 This policy was revised to provide further clarification on the particular records being requested for retention. Additionally, it was clarified that in accordance with NCUA Rules part 749 the credit union’s bond claims and insurance policies should be maintained permanently. (Required) 2017-5 This policy was revised to add clarification on the permanent retention of credit union insurance policies as outlined with Part 749 of the NCUA rules. (Recommended)

Policy 10007 – Record Retention Table 7 – Lending Records Older Updates: 2013-2, 2013-3, 2014-1, 2014-2

2015-2 This policy was revised to include the record retention requirements under the TILA-RESPA integrated mortgage disclosures. Record retention periods was added for the closing disclosure, loan estimate, escrow cancellation notice, mortgage servicing transfer notice and the intent to proceed. (Recommended)

2015-3 Changes were made to correct the authority for the record retention requirements related to the Department of Motor Vehicle documents. Although a 4 years after loan payment is still recommended as the term, credit unions should confirm and consult with their applicable state law. (Recommended) 2016-2

https://www.ecfr.gov/cgi-bin/text-idx?SID=5b8e0d8075adc2f72db1367ea0463cd3&mc=true&node=pt12.7.749&rgn=div5

https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_116.htm

https://www.dol.gov/whd/regs/compliance/wh1261.pdf

https://www.ecfr.gov/cgi-bin/text-idx?SID=5b8e0d8075adc2f72db1367ea0463cd3&mc=true&node=pt12.7.749&rgn=div5


The citations that reference 31 CFR Chapter 103 were all updated to reflect the current citation of 31 CFR Chapter X. (Recommended) 2017-4 This policy was revised to update the retention timeframe and reference for consumer loan documents in accordance with Regulation Z. (Required)

Policy 10008 – Record Retention Table 8 - Negotiable Instruments Records Older Updates: 2013-3, 2014-1

2016-2 The citations that reference 31 CFR Chapter 103 were all updated to reflect the current citation of 31 CFR Chapter X. (Recommended) 2017-4 Timeframes were also adjusted to 5 years to comply with BSA record retention requirements. Additionally, references for certain instruments were changed to reference the Uniform Commercial Code, Article 4. (Required) 2020-2 This record retention table was amended to clarify UCC 4-111 for the retention of stop payment orders to 3 years. (Recommended)

Policy 10009 – Table 9 - Personnel & Employment Records Older Updates: 2013-2, 2013-3, 2014-1, 2014-2, 2014-4 2015-4 The record retention table for personnel & employment records was updated with more detailed information regarding record retention requirements and the relevant authority for those terms. (Recommended) 2017-4 Addition was made to add “401K” under “Pension Plan documents.” (Recommended) 2017-5 This policy was revised to comply with the 3 year record retention requirement within the Fair Labor Standards Act for earning records and time records. (Recommended)

Policy 10010 – Table 10 – Security Records Older Updates: 2014-1 2016-2 Record retention time frames were include to comply with the requirements contained in FinCEN’s Customer Due Diligence final rule related to documents associated with the identity and verification of beneficial owners of legal entity members. (Recommended)

https://www.ecfr.gov/cgi-bin/text-idx?SID=b6c2a05036f1c503100fbf6b74776caa&mc=true&node=se12.9.1026_125&rgn=div8

https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_116.htm

http://www.uniformlaws.org/Act.aspx?title=UCC%20Article%203,%20Negotiable%20Instruments%20and%20Article%204,%20Bank%20Deposits%20(2002)






2017-4 Correction was made to the reference for Currency Transaction Reports. (Recommended)

Policy 10011 - Table 11 – Member Account Records Older Updates: 2013-3, 2014-1 2015-3 The correct reference for Signature Guarantee record retention was changed to 17 CFR 240.17Ad-15. (Recommended)

2016-1 Record retention timeframe was amended for IRA documentation. Although specific guidance does not exist for retention time periods, Ascensus, a known subject matter expert, was consulted and recommends credit unions retain documentation for 7 years after the account is closed. (Recommended) 2016-2 The citations that reference 31 CFR Chapter 103 were all updated to reflect the current citation of 31 CFR Chapter X. (Recommended) 2017-3 This policy was revised to include the credit union’s record retention requirements for Savings Bonds. (Recommended) 2017-4 Correction was made to the citation for certain remote banking notices/disclosures and transfer authorizations to comply with the requirements within Regulation E. Changes were also made to the retention time period for Signature Guarantees. (Required) 2018-1 The record retention policy is being updated based on a response from Kenmark Financial Services, who manages the Medallion Signature Guarantee program. They indicated that the Medallion Program does not set any guidelines for record retention. Instead, it is up the institution's own internal policies and procedures. A claim can be made up to six years AFTER the date of discovery. Therefore, as a conservative approach the record retention guidelines are being updated to reflect 6 years for retention. (Recommended)

Policy 10100 – Record Retention Older Updates: 2014-1

2015-1 The sample Record Disposition Log and Records Preservation Log were removed from the policy and included in the “Tools” area of the CU PolicyPro Library. (Recommended)

Policy 11001 FAIR CREDIT REPORTING ACT (FCRA) Older Updates: 2012-1, 2014-4

http://www.ecfr.gov/cgi-bin/text-idx?SID=1bed6c003c132ee090b1091a54d85203&mc=true&node=se17.4.240_117ad_615&rgn=div8

https://www.ecfr.gov/cgi-bin/text-idx?SID=23e7e4c111f1fb7669c7ec39328783be&mc=true&node=se12.8.1005_113&rgn=div8


2015-2 The Fair Credit Reporting Act had an error in the Definitions section reference section 10 as opposed to 11 for the listing of other permissible purposes of using credit reports. This was amended in this revision. (Recommended) 2016-1 The CFPB published a bulletin on February 3, 2016 regarding the requirements of credit unions to establish reasonable written policies and procedures regarding the accuracy and integrity of information furnished to the Credit Reporting Agencies, specifically pointing out the applicability of furnishing deposit account information. Therefore, we are updating this policy to indicate the need to provide certain disclosures when information in a consumer report is used to take adverse action generally on a member. (Recommended)

Policy 11002 – Furnishing Information to CRAs Older Updates: 2008-1, 2009-1, 2014-4

Policy 11003 – Accuracy and Integrity of Information Older Updates: 2014-4

2016-1 Revisions were also made to Policy 11003 to indicate that “Furnishers” also include credit unions who provide deposit account information to specialty CRAs and are therefore governed under the same standards of providing accurate information.

Policy 11004 – Pre-Screened Offers of Credit Older Updates: 2014-4

2017-2 Policy 10004 was revised to correct an error of inversed numbers on a regulatory citation. The correct reference to record retention in Regulation E is 1005.13. (Recommended)

Policy 11005 - Adverse Action On The Basis Of Information Contained In Consumer Reports Older Updates: 2014-4

Policy 11006 – Receipt of Dispute of Accuracy of Information Older Updates: 2014-4

2015-1 The guidelines under section 2 for “Frivolous or Irrelevant Dispute” was reworded to provide further clarity on how a credit union determines if a dispute qualifies as frivolous or irrelevant and to complete item B under this section. (Recommended)

http://files.consumerfinance.gov/f/201602_cfpb_supervisory-bulletin-furnisher-accuracy-obligations.pdf


DELETED Policy 11008: Credit Reports 2014-4 This policy has been removed from the Master Manual because the information in this policy is available in another policy within CU PolicyPro. Information regarding the requirements for credit unions regarding establishing new credit or issuing additional cards on an existing credit plan when a member has an alert on their consumer report can be found in Policy 11001 – Fair Credit Reporting Act. (Recommended)

Policy 11009 – Identity Theft Red Flags Older Updates: 2014-1, 2014-4

Policy 11010: Risk Based Pricing Older Updates: 2012-1, 2014-4

DELETED Policy 11011 – Disclosure of Credit Scores 2015-1 This policy is being suggested for elimination. Policy 11001 – Fair Credit Reporting Act contained duplicative information regarding the Notice to Home Loan Applicants disclosure requirement for lenders that make or arrange mortgage. (Recommended)

Policy 11012 – Disclosure of Information to Victims of Identity Theft Older Updates: 2014-4

DELETED - Policy 11013 – Prevention of Re-Pollution of Consumer Reports 2015-1 This policy is being suggested for elimination. Policy 11003 was revised to include the requirements outlined in the FCRA regarding the furnishing of information to a CRA if the Credit Union received notification that the information resulted from identity theft. Information regarding the furnishing of information to a CRA that was a result of identity theft is also addressed in Policy 11009 – Identity Theft Red Flag Guidelines. (Recommended)

DELETED - Policy 11014 – Reconciling Addresses 2015-1 This policy is being suggested for elimination. Policy 11009 – Identity Theft Red Flag Guidelines addresses the Credit Union’s obligations as a user of credit report information when a notice of an address discrepancy is received from a credit bureau. (Recommended)

Policy 11015 - Obtaining and Using Medical Information Older Updates: 2014-4

Policy 11016 – Affiliate Marketing Rules Older Updates: 2014-4


2017-5 This policy was updated to correct a clerical error. (Recommended)

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