CCUL reflects on IOLTA final rule, sets sights on future reg advocacy efforts
Monday, December 28, 2015
As reported earlier this month, the NCUA board approved a final rule the provides enhanced pass-through share insurance coverage for real estate agents’ escrow accounts, prepaid funeral accounts and other escrow accounts similar to lawyers’ trust accounts. The Carolinas Credit Union League (CCUL) is pleased with the board’s unanimous decision as it addressed the recommendations made by the league on behalf of member credit unions in a comment letter sent in July.
“Specifically, we recommended that the agency add to its current definition of escrow accounts to include realtor accounts, prepaid funeral accounts, and agent–trust fiduciary accounts,” said Jeanne Couchois, VP compliance & regulatory counsel.
The League did not advocate for the inclusion of prepaid cards as it feared the additional regulatory burden that would be placed on member credit unions.
“It was our position that including such accounts would erase any ambiguity among state laws and would minimize the need for a case by case analysis of whether an account qualifies as an escrow account,” Couchois added.
The final rule, which explicitly excluded prepaid cards, will take effect 30 days after it is published in the Federal Register. NCUA will distribute guidance on the rule to credit unions before it goes into effect.
The League views this as another win for member credit unions. In addition to this advocacy effort, CCUL also voiced credit union concerns in the following areas this year:
- Examiner Relationships/Examination Issues
- Credit Union Membership of Choice
- Save to Win
- TNCs (Transportation Network Companies)
And on the regulatory front, the League provided successful advocacy through poignant comment letters on issues such as the NCUA’s RBC rule and fixed asset rule.
“As we look ahead to next year, the CCUL advocacy and regulatory counsel will maintain efforts to share the credit union viewpoint by focusing on wet signature & electronic titling, enhancing our relationship with state and federal regulators, and weighing in on field of membership while addressing detailed, state-specific issues that arise,” said Trichina Pierce, compliance manager/associate counsel.