Compliance Watch

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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.

The Credit Union Commission will hold its regular meeting on Friday, June 10, at 9 a.m. in the Department’s conference room.

As we prepare for the June 1 start of the hurricane season, credit unions are reminded to review, test and, if necessary, update their emergency management response and contingency planning policies and procedures.