NCUA provided a regulatory alert to credit unions regarding changes to the CFPB remittance rule that will take effect on July 21.
Amendments to Regulation E, published on June 5 in the Federal Register, increase the normal course of business safe harbor threshold from 100 remittance transfers to 500 remittance transfers in Subpart B to Regulation E, the remittance rule. An executive summary of the May 2020 amendments can be accessed on the CFPB website.
The final rule also creates two new permanent exceptions, one for third-party fees and one for foreign exchange rates, while these permanent exceptions permit credit unions to use estimates in required disclosures if they meet certain conditions, an NCUA letter to credit unions this week stated.
NCUA encourages credit unions to read the provisions of the final rule and Regulation E to determine the effect on their operations. Additional resources are available on NCUA’s Consumer Compliance Regulatory Resources page and on the CFPB’s website.
NCUA’s regulatory alert can be accessed by clicking here.