June 16, 2021
TO: ALL WISCONSIN STATE-CHARTERED CREDIT UNIONS
RE: UPDATES TO ADMINISTRATIVE RULES
Effective July 1, 2021, the Office of Credit Unions is updating several Administrative Rules. The rules have been updated or repealed due to three factors: repeal of rules that have become obsolete due to changes in state law; revision of rules to reflect modern technology and business practices and repeal of rules that are redundant of (or less stringent than) governing state statutory or federal law.
Below is a list of the affected rules and the changes:
- DFI-CU 54, Real Estate Mortgage Loans. DFI-CU 54.03 (4) is added to allow the Director of the Office of Credit Unions to waive limitations on the duration of mortgage loans for good cause shown.
- DFI-CU 56, Credit Union Review Board.
- DFI-CU 56.03 is amended to eliminate an inconsistency with a related statute on time to seek review of an adverse action by the Office of Credit Unions. The modification adopts the 60 day window period established by Wisconsin Statute s. 186.015 (5).
- DFI-CU 56.03 and DFI-CU 56.05 are amended to authorize the electronic delivery of filings in administrative actions before the Credit Union Review Board.
- DFI-CU 57, Retention of Credit Union Books and Records. This rule is repealed as Wisconsin credit unions must follow the federal rules to maintain federal insurance, NCUA Rules & Regulations Part 748 (Security Program, Report of Suspected Crimes, Suspicious Transactions, Catastrophic Acts and Bank Secrecy Act Compliance) and 749 (Records Preservation Program and Appendices-Record Retention Guidelines; Catastrophic Act Preparedness Guidelines).
- DFI-CU 58, Sale of Credit Life and Health and Accident Insurance in Connection with Credit Union Loans. This rule, which (among other things) prohibited credit unions from sharing sales commissions from the sale of insurance with its officers and employees on a percentage basis, is repealed as it is redundant with Wisconsin Statute s. 186.36, which already requires credit union officers and employees who act as the credit union's agents for the sale of insurance to pay any resulting sales commissions earned to the credit union. That statute does not distinguish between commissions paid directly by the purchaser to the officer or employee, on the one hand, and commissions paid to the credit union and subsequently distributed on a percentage basis to the officer or employee, on the other. Either way, the statute prohibits an officer or employee from retaining them.
- DFI-CU 63, Remote Service Units.
- DFI-CU 63.01 is amended to remove a reference to the "division of savings and loan" which no longer exists.
- DFI-CU 63.03 is repealed as the office no longer needs advance notice of ATM placements to protect the public interest.
- DFI-CU 66, Credit Union Limited Services Office Located Out-of-State. This rule is repealed as it is no longer relevant due to the fact that credit unions can open out-of-state branch offices per Wisconsin Statute s. 186.113 (1).
- DFI-CU 73, Audits and Verifications. This rule is repealed as Wisconsin credit unions must follow the federal rule to maintain federal insurance, NCUA Rules & Regulations Part 715, Supervisory Committee Audits and Verifications.
The Administrative Rules can be accessed here.
If you have any questions, please contact the Office of Credit Unions at (608) 261-9543 or via email at
dfi-ocu@dfi.wisconsin.gov
Sincerely,
Kim Santos
Director
OFFICE OF CREDIT UNIONS