Compliance Watch

The Federal Trade Commission has published a notice of proposed rulemaking [87 FR 33677] seeking public comment on proposed amendments to the Telemarketing Sales Rule (TSR).

For years, the CFPB has warned about companies positioned just outside the gates of military bases that target servicemembers with costly loans and expensive contracts for items like cars, furniture, and electronics.

View the full InfoSight issue.

Question: Are we required to send a 1099-NEC (non-employee compensation) to a vendor that is a corporation? Answer: No. You are not required to send a 1099-NEC to either a C or S corporation in most circumstances—the exceptions being certain situations that are not typically involved in credit union operations.

The CFPB recently announced its issuance of Consumer Financial Protection Circular 2022-03, "Adverse action notification requirements in connection with credit decisions based on complex algorithms."

The Federal Housing Finance Agency recently published a final rule that amends the Enterprise Regulatory Capital Framework by introducing new public disclosure requirements for Fannie Mae and Freddie Mac.

According to a notice on the Department of Defense's Military Lending Act website, its next planned system release (version 5.13) is scheduled for June 30, 2022.

The CFPB has posted a blog article, "CFPB tells credit card CEOs: Practice of suppressing payment data has potential for consumer harm."

The Federal Housing Finance Agency has released its House Price Index Report for the first quarter of 2022.

As national and state regulations regarding hemp and marijuana production, processing, and sales evolve, it is important that credit unions ensure their ability to identify and appropriately monitor cannabis-related accounts, and understand their legal responsibilities.