Compliance Q&A: EHL and the SAFE Act
NCUA revisits equal housing issues.
Q NCUA recently revised its Equal Housing Lender (EHL) notice to remove references to the “Office of Examination and Insurance” and replace them with the “Office of Consumer Protection.”
Is this change applicable to federal credit unions, or all federally insured credit unions?
A This change was only applicable to federal credit unions, not federally insured, state-chartered credit unions.
Section 701.31 of NCUA’s regulations and the corresponding EHL notice were updated to reflect the designation of NCUA’s Office of Consumer Protection to hear discrimination complaints under the Equal Credit Opportunity Act and Fair Housing Act. This section of NCUA’s regulations only applies to federal credit unions.
The requirements for state-chartered credit unions are located in the Department of Housing and Urban Development’s Fair Housing Act regulations at 24 CFR Part 110.25(a).
Next: Does the SAFE Act require annual independent testing?
Q Does the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) require annual independent testing?
A Yes. The SAFE Act requires independent testing (i.e., audit) of the credit union’s policies and procedures for complying with the act and its implementing regulations “at least annually.”
Credit unions that offer mortgage loans should examine what systems they have in place to monitor and ensure compliance with the federal registration and renewal requirements. Independent testing may be conducted by credit union personnel or outside parties.