Division of Credit Unions News

News from the Washington State Division of Credit Unions.

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In early August of 2016 the Department of Licensing (DOL) notified the Division of Credit Unions (Division) of an investigation of the questionable use of power of attorney forms for vehicle title transfers. The investigation pertained to the practice of a power of attorney (POA) signed by a credit union employee to transfer the credit union’s interest in a vehicle. This Bulletin is to alert credit unions that rely upon power of attorney language within a consumer loan agreement as an actual power of attorney form. The DOL will now require a separate power of attorney to be signed by the member, not an employee of the credit union.
The Independent Community Bankers Association (“ICBA”) has filed a complaint against the National Credit Union Administration (“NCUA”) in the United States District Court for the Eastern District of Virginia, challenging the NCUA’s recent adoption of a final rule related to member business lending (“MBL”).1 Accordingly, some of Washington state-chartered credit unions have made a request to the Director of Credit Unions to temporarily suspend the pending rule-making process to update the Washington State Member Business Lending (MBL) Rule.2 We concur that, while the Division of Credit Unions and credit unions analyze this lawsuit and its implications (if any) for Washington State, it would be prudent to temporarily suspend our rule-making process at this time.
The Division of Credit Unions (Division) intends to repeal its state Regulatory Relief for Small Credit Unions rule (Chapter 208-424 WAC). Rulemaking will begin in August 2016 with the filing of the CR-101 (see attached). Meetings will be held over the next several months for stakeholder and public discussion.
The Division of Credit Unions is pleased to announce the transition of receiving and sending all consumer complaint communications electronically for a more efficient process. The Division will begin sending all consumer complaints electronically to the applicable credit union as of October 1, 2016.
Chapter 31.12 RCW authorizes the Director to charge fees to credit unions and certain other persons in order to cover the costs of the operation of the division of credit unions and to establish a reasonable reserve for the division. Chapter 208-418 WAC is amended to change the frequency of these fees from quarterly to semi-annual assessments.
DFI is amending Chapter 208-460, Washington Administrative Code, Member Business Loans (“State MBL Rule”), under the Washington State Credit Union Act Chapter 31.12, Revised Code of Washington, to coincide with the revised NCUA MBL Rule (“Federal MBL Rule”) that will become effective January 1, 2017.
The Division of Credit Unions is issuing this bulletin after reviewing indirect lending compliance at various credit unions and finding inconsistent practices.
The following is the link to the self-assessment https://www.ffiec.gov/cyberassessmenttool.htm .
DFI filed the Final Rule (“CR-103”) on November 30, 2015. Starting January 1, 2016 asset assessment fees will be collected on a semi-annual basis.
The Division of Credit Unions will hold a public hearing on the proposed amendments to 208-418 WAC. The CR-102 was filed with the Washington State Code Reviser on October 20, 2015.
Cybersecurity has been identified as a significant threat to financial institutions and credit unions and banks are a primary target for cyber theft. Additionally, data breaches and credit card losses have become much more frequent and expensive. Because of this, the Division of Credit Unions decided to allocate more examination resources to cybersecurity and information technology (IT) exams.
The Director of Credit Unions is proposing amendments to chapter 208-418 WAC. The proposed amendments will change the frequency of asset assessment fees collected by the Division of Credit Unions. The proposal is to change the timing of collecting assessment fees from being collected each quarter in January, April, July, and October to semi-annual in January and July, effective December 31, 2015. The amount of fees collected per calendar year will remain the same, only the timing of payments would change.
DFI invites you to an event that will address some of the top challenges confronting state-chartered credit unions at the 2015 DFI CEO Outreach Event in SeaTac. The event will be held at the DoubleTree by Hilton Hotel Seattle Airport.
DFI invites you to an event that will address some of the top challenges confronting state-chartered credit unions at the 2015 DFI CEO Outreach Event in SeaTac. The event will be held at the DoubleTree by Hilton Hotel Seattle Airport.
In September 2015, the Director of Credit Unions will begin the rulemaking process to amend WAC 208-418 Fees Charged to Credit Unions and Related Parties.
2015 Senate Bill (SB) 5300 (2015 c 114) amends the Washington Credit Union Act, chapter 31.12 RCW. These amendments are not effective until July 24, 2015.
The Federal Financial Institutions Examination Council (FFIEC) today released two statements about ways that financial institutions can identify and mitigate cyber attacks that compromise user credentials or use destructive software, known as malware. In addition, the FFIEC provided information on what institutions can do to prepare for and respond to these threats.
The Division of Credit Unions (Division) will begin using the CAMEL component “S” rating for examinations beginning with onsite examinations starting on May 1, 2015 and thereafter.
The Division of Credit Unions has released a bulletin outlining the six main areas exams will focus on for 2015.