E-Exchange Newsletter

We publish this quarterly newsletter to keep you up-to-date on compliance changes that may affect your programming or lending systems. It also includes information on future Calc Engine releases. Reviewing this newsletter will help you continue to provide reliable service to your credit union customers.

Watch for your quarterly e-mail announcing that a new edition of E-Exchange has been published on our website. Be sure to refer your colleagues to articles that may be of interest to them.

Current Issue - Fall 2020

What’s new at CUNA Mutual Group

During Discovery 2020, CUNA Mutual Group Chief Economist Steve Rick talked about any permanent impact to the economy done by COVID-19. Steve then spoke about the top 10 ways household behavior has changed due to the pandemic -- which has had a lasting impact on the economy. Watch here.

Where We Stand on Social Justice

CUNA Mutual Group was founded on the principle of people helping people and is guided by a purpose to help people achieve financial security – a purpose that continues to guide us. We recognize and acknowledge our nation’s history holds centuries of oppression and systemic racism that lives on today. This must change. We understand that the work we’ve been doing to address racial injustice requires further effort, and we need to do more. We invite our technology partners to join us in this journey. As we’ve done with other more technical topics over the years, we invite our technology partners to share your ideas and insights on this very important topic.

CUNA Mutual Group pledges to be part of the solution to help improve the lives of those we serve and create a better society for the benefit of every one of us. Please visit our web page on Where We Stand on Social Justice. We invite you to join our conversation.

Contact Joe Schubert with any questions, comments, or ideas you’d like to share.

CUNA Mutual Group Resources Available to Technology Providers

CUNA Mutual Group invites our technology partners to visit our website and make use of many of the same resources we make available to credit unions and members. Of specific interest, you can check out our website to:

  • View on-demand sessions from our recent Discovery 2020 Conference.
  • Learn about our new Private Mortgage Insurance Program.
  • Visit the Support Hub to Help Strengthen Our Customers and Communities

Looking for something but cannot find it? Contact Joe Schubert for more assistance.

Do Not Split Debt Protection Rates

When CUNA Mutual Group designed its Debt Protection program, we used a package rate concept since we knew many data processing systems would not be able to handle more than two rates. In this way, we would be able to create a package with protections for life, disability, unemployment, and other hazards.

On your data processing system, you must keep these package rates intact. Even if the package only covers two hazards, such as life and disability, the one package rate should be used in your system. We have experienced instances where the rate for the Life only package was subtracted from the rate for the Life and Disability package to create a “disability” rate. This should not be done for the following reasons:

  • It adds increased complexity to the setup. You must subtract to determine a fictional rate. You might make a mistake in determining that rate or entering that rate, while just using the package rate provides less opportunity for such mistakes both now and in the future.
  • By splitting the rate in two, you are causing the system to calculate two individual parts to the fee, which may not add up to the correct fee due to rounding.
  • It does not truly characterize the underlying rates to the package components and does not really add any true meaning or purpose.

If your system does not support debt protection with its own separate codes and fields, we recommend rates always be stored using the credit life functionality. Since our debt protection program has minimal other parameters for processing the fee, this approach generally works best. If you have any questions regarding how to store Debt Protection rates and maximums in your system, please contact the DP Solutions Team.

If you have any questions, use this form to contact our department.

New Fannie Mae Uniform Residential Loan Application

Fannie Mae and Freddie Mac have dramatically changed the existing Fannie Mae 1003 application and renamed it to the Uniform Residential Loan Application (URLA). The redesigned URLA, comprised of five different documents, works with the new corresponding Uniform Loan Application Dataset and new Desktop Underwriter specifications. Each of the application’s fields is mapped to the Mortgage Industry Standards Maintenance Organization (MISMO) Version 3.4.

Since Fannie Mae provides free and easy access to the five URLA documents, LOANLINER Compliance Solutions will not offer the revised URLA and recommends that credit unions download the documents from Fannie Mae’s URLA web page. The Uniform Loan Application Dataset, automated underwriting systems and MISMO require significantly more detailed information in documents and compliance support. As a result, LOANLINER will not be able to provide support for the redesigned URLA downloaded from Fannie’s site.

If a credit union sells mortgages to Fannie Mae or Freddie Mac, note these key dates:

  • January 1, 2021 - First day the redesigned URLA can be used.
  • March 1, 2021 – Mandatory date when lenders must use the redesigned URLA and the new automated underwriting system specifications.
  • March 1, 2022 – A year after the mandatory date, Fannie Mae will retire their old FNMA 1003 application.

If a credit union does not sell to Fannie Mae or Freddie Mac, they do not need to use the new URLA. LOANLINER is creating a new Real Estate Loan Application that credit unions will be able to use for portfolio purchase money mortgages and home equity mortgages.

If you have any questions, use this form to contact our department.