Compliance Watch

The Federal Housing Administration has announced new flexibility for lenders when qualifying borrowers who experienced previous employment gaps or loss of income due to the COVID-19 pandemic.

Question: Can a person take out a HELOC for educational purposes? Answer: Yes, but the loan would not be classified as a private education loan requiring additional disclosures.

From our family to yours, we wish a happy, fun-filled, and safe Fourth of July! Please note that the League InfoSight and CU Solutions Group offices will be closed on Monday, July 4, in observance of the holiday.

We are happy to announce that a new topic to assist credit unions, Safe Deposit Boxes, has been added to the Accounts Channel in InfoSight.

The CFPB has issued a Final Rule amending Regulation V, which implements the Fair Credit Reporting Act, to address recent legislation that assists consumers who are victims of trafficking.

Scammers are using the names of well-known employers to post job openings that don’t exist. The purpose is to trick consumers into sending them personal information or money up front to get the job.

The CFPB announced that it is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees.

The Consumer Financial Protection Bureau is working to identify and address the financial needs of immigrants and their families.

The Cornerstone League and Heartland Credit Union Association are exploring the possibility of a merger. Both league boards approved moving forward with the due diligence process, and a letter of intent has been signed by both organizations.

Question: How are soft credit pulls supposed to work? Answer: A “soft pull” or pre-screening request is when a creditor wishes to know if a certain category of consumers may meet the requirements for a certain credit product.