WASHINGTON (10/15/14)--The Credit Union National Association's CompBlog compiles the latest in compliance issues affecting credit unions. While this includes a rundown of events and regulations that are on the horizon, it also includes input from compliance officers around the country, as well as questions from readers about everyday situations.
CompBlog's Compliance Officer Tip of the Week comes from submissions made by compliance officers over the summer, who were invited to share advice they would give to a new compliance employee.
Bonnie Gall, a shared compliance specialist with the Ohio Credit Union League, wrote in suggesting compliance officers always ask open-ended questions until it can be sure the situation at hand is completely understood.
"When responding to any question, never assume you have all the facts. Ask open-ended questions, until you are certain of the facts being presented and you understand the situation before responding," Gall wrote.
Colleen Kelly, CUNA's senior assistant general counsel for federal compliance, called this tip "great advice," and recommended all compliance officers "keep asking questions until you feel comfortable that you understand the whole story behind the compliance question being asked of you."
The blog also answers questions on various regulatory matters. Last week, someone wrote in asking if a business loan secured by a lien on a non-owner occupied dwelling is exempt from the National Credit Union Administration's member business lending rule.
The question was answered by Mike McLain, CUNA's senior assistant general counsel for compliance, who answered in the affirmative.
"The first exception under Section 723.1 is for a business loan that is fully secured by a lien on a one- to four-family dwelling that is the borrower's primary residence," he said. "Such a loan is an exception and is not considered a business loan and is not subject to the requirements of Part 723."
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