Posted: Dec 6, 2018
Categories: Regulations
Comments: 0

The Payments Review compliance feature occasionally highlights regulatory topics important to credit unions.

Federal regulators are reaching out and helping credit unions and community banks with a series of changes.


On October 3, 2018, Federal regulators ruled that credit unions and community banks can pool resources for anti-money laundering. The Wall Street Journal, citing a statement from the Federal Reserve, the Federal Deposit Insurance Corp., the Treasury Department, the Office of the Comptroller of the Currency and the National Credit Union Administration, reported that the decision was borne out of a working group that the agencies created to improve anti-money laundering processes. The decision is a more significant attempt to help strengthen money laundering defense in the US. However, the sharing of resources does not alleviate the responsibilities of the individual institution. It should also be noted that this does not change the existing legal and regulatory requirements. Additionally, if an institution decides to share resources, it should be done in the same manner as any other business relationship.


Another recent decision at the federal level will potentially make it easier for credit unions to participate in the real estate underwriting process. The threshold requiring a full appraisal for real estate transactions was recently raised from $250,000 to $500,000. The hope is that more credit unions can integrate automated valuation models (AVMs) into their underwriting process. AVM is the name given to a service that can provide real estate property valuations using a mathematical equation combined with a database. Most AVMs calculate a property’s value at a given point in time by further analyzing values of comparable properties. This could allow underwriting tasks to be completed faster, with the potential of increasing loans that credit unions issue using AVMs.


Another development is that the Credit Union National Association (CUNA) recently added its support in a series of bills that could allow credit unions to not only accept deposits but offer credit and payment services to legitimate marijuana merchants. This could also provide legal protection to credit unions from federal regulators.


There are a lot of changes coming to financial institutions. If you are not sure how they affect your credit union, e-mail us at to arrange for a member of our consulting team to help you to navigate the complexities and discuss opportunities to take advantage of this ever-changing lending landscape.




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Dave Chojnacki

Dave ChojnackiDave Chojnacki

Dave has more than 10 years of relationship management experience and holds a Credit Union Compliance Expert (CUCE) Designation from CUNA. He currently serves as Director of Consulting Services at Trellance.

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