In its continuing efforts to assist credit unions, the New York Credit Union Association’s compliance department is available to provide answers to a range of important questions from member credit unions.
Bridget Castle, the Association’s senior compliance specialist, has compiled “hot topics,” a list of frequently asked questions by credit unions, during the third quarter of 2021, as well as the corresponding answers.
Q: If a member has no activity on a savings account, but daily activity on a checking account. Would the checking account resolve dormancy on the savings account?
A: Based on the below excerpt from the New York state comptroller’s handbook, if the credit union can demonstrate that these accounts are manually or electronically linked activity on one account could resolve dormancy on another.
Linkage of Accounts
For instances in which a reporting organization has the ability to link several accounts of a single customer either manually or electronically, it is our opinion that you may treat an exclusionary action on one of the customer’s accounts as an exclusionary activity for all of the customer’s accounts, including those that are inactive or dormant. However, you should notify the customer of any dormant accounts and instruct him/her to reactivate the account.
Examples of such accounts are savings, checking, IRA, personal trust, loan payment, mutual fund within the same fund group, and brokerage, etc. In the absence of an exclusionary activity, a related inactive account should not delay the reporting of a dormant account.
Q: How can my credit union determine if we are subject to HMDA reporting?
A: The criteria for whether an institution is covered by Regulation C (HMDA) is found in 12 CFR §1003.2(g). This criteria is illustrated in the HMDA institutional coverage chart from the CFPB
Q: Is it permissible for our credit union to accept a power of attorney document that was executed outside of New York state?
A: It is permissible to accept a power of attorney document that has been executed outside of New York State. Below is the relevant section of New York General Obligations Law that allows this.
§ 5-1512. Powers of attorney executed in other jurisdictions. Notwithstanding the provisions of section 5-1501B of this title, a power of attorney executed in another state or jurisdiction in compliance with the law of that state or jurisdiction or the law of this state is valid in this state, regardless of whether the principal is a domiciliary of this state. A power of attorney that complies with section 5-1501B of this title and is executed in another state or jurisdiction by a domiciliary of this state is valid in this state. A power of attorney executed in this state by a domiciliary of another state or jurisdiction in compliance with the law of that state or jurisdiction or the law of this state is valid in this state.
Q: Does Regulation E require the credit union to investigate an error after the account has been closed?
A: Yes. Regulation E commentary offers the below guidance:
4. Error asserted after account closed. The financial institution must comply with the error resolution procedures when a consumer properly asserts an error, even if the account has been closed.
Contact the Compliance Department with your questions at compliance@nycua.org or by calling (518) 437-8174. Learn more about compliance resources available to member credit unions on the Association’s website.