Regulations for lenders are seemingly endless, making it challenging for credit unions to stay on top of the continuous changes. During a Discovery breakout session Tuesday at the America’s Credit Union Conference, Bill Klewin told credit union leaders how they can prepare themselves and their employees for the next wave of regulations.
“Regulatory compliance is a major issue for credit unions to manage, especially when the rules keep changing,” says Klewin, CUNA Mutual Group’s director of regulatory compliance. “Because the rules are complex and lengthy, credit unions must plan effectively for the risks.”
Klewin reminded the audience of “the deluge of laws” hitting financial institutions during the past few years, including:
In addition to the plethora of new laws, credit unions are also subject to regulations regarding truth-in-lending (Regulation Z), consumer leasing (Reg M), equal credit opportunity (Reg B) and the Fair Credit Reporting Act.
“Reg Z was once a relatively stable regulation,” Klewin notes. “Not anymore. It’s become a catch-all for anything remotely related to lending, making compliance a challenge for every lender.”
Klewin took the audience through the many changes and additions to Reg Z that directly affect lending regulations, reminding them that putting their heads in the sand isn’t a good strategy.
“The complexity and depth of the compliance changes will tax your staff and will be expensive, so the news isn’t good,” he says. “You need to plan long-term to deal with all the changes and uncertainty. But because compliance is a priority, you must understand the risks.”
WASHINGTON (5/4/15, UPDATED 1:45 p.m. ET)--Building on the success credit union advocates are having in getting data breach legislation introduced in the U.S. Congress, today CUNA launches a new call to action to garner support for the recently introduced House Data Security Act of 2015 (H.R. 2205).