Compliance

Share certificate as collateral for loans

Q&A:  Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League's Compliance Hotline at (608) 640-4050 or email.  

Q. We need to take a share certificate as collateral for a loan. What forms are needed to do that?

Executive Order ends most affirmative action obligations

NEWS:  The day after taking office, President Trump issued an Executive Order (E.O.) that revoked a previous 60-year-old E.O. which had required federal contractors (including credit unions) to affirmatively ensure that their employment practices did not discriminate against people based on race, ethnicity, sex, national origin, or religion.

Regardless of that new E.O., federal contractors still have ongoing statutory affirmative action compliance requirements under federal laws that prohibit discrimination against protected veterans and against people with disabilities.

CFPB plans changes to small business lending rule

NEWS:  According to a recent court filing, the Consumer Financial Protection Bureau (CFPB) plans to start a new rulemaking process to revise its small business lending rule.

Help your members with direct deposit of federal payments

TIP:  In yesterday’s Compliance Courier, The League informed you that President Trump signed an executive order calling on the federal government to phase out the use of paper checks and switch to electronic payments by Sept. 30, 2025. The change would apply to all sorts of federal payments and direct deposits, including tax refunds, Social Security, and various federal benefits. 

As the Courier pointed out, the administration has promised “A comprehensive public awareness campaign will be launched to inform Federal payment recipients of the shift to electronic options and offer guidance on setting up digital payments.”
 
In the meantime, we thought it would help to offer tips credit unions can use to help members who hear about this order and want to sign up for direct deposit sooner rather than later. So, in today’s Courier, we’ll explain how you can help members learn more about the benefits of direct deposit and even help them enroll.