1. 2012 Third Quarter Compliance and Regulatory Issue Review

2. Overview of 3 rd Quarter Compliance Issues Bank Secrecy Act – Electronic Filing/New Formats FCC Telemarketing Rules NCUA – Interest Rate Risk NCUA – Troubled Debt Restructuring

3. BSA E-Filing Guidance Electronic filing required by July 1, 2012 New CTR and SAR formats CTR filing within 15 days – required by March 31, 2013 SAR continued activity filing clarification For additional information: http://www.fincen.gov/forms/e-filing/http://www.fincen.gov/forms/e-filing/ And CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=763http://mi.cubetvonline.com/cubetv/index.php?view=video&id=763

4. FCC’s Telemarketing Rules Opt-out must be provided for prerecorded telemarketing calls For additional information: http://www.gpo.gov/fdsys/pkg/FR-2012-06-11/pdf/2012-13862.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2012-06-11/pdf/2012-13862.pdf And: http://www.fcc.gov/document/fcc-strengthens-consumer-protections-against-telemarketing-robocalls-0http://www.fcc.gov/document/fcc-strengthens-consumer-protections-against-telemarketing-robocalls-0

5. Interest Rate Risk Policy & Program NCUA Letter to Credit Unions 12-CU-05 Comprehensive IRR written policy; Accountable oversight by the Board and management; Measurement and monitoring systems; Internal controls; and Decisions based on IRR measurement results. For additional information: http://www.ncua.gov/Resources/Pages/LCU2012-05.aspxhttp://www.ncua.gov/Resources/Pages/LCU2012-05.aspx And CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=834http://mi.cubetvonline.com/cubetv/index.php?view=video&id=834

6. TDRs - Loan Workouts – Nonaccrual NCUA – 12 CFR 741 - Troubled Debt Restructuring and Loan Workout and Nonaccrual Policy  Relaxed reporting requirements  New written loan workout policies  Loans over 90 days past due must be on nonaccrual For information on TDR’s: http://www.ncua.gov/Legal/Documents/Regulations/PR20120126LoanWorkouts.pdf http://www.ncua.gov/Legal/Documents/Regulations/PR20120126LoanWorkouts.pdf And CUBE TV: http://mi.cubetvonline.com/cubetv/index.php?view=video&id=790http://mi.cubetvonline.com/cubetv/index.php?view=video&id=790

7. Fourth Quarter Compliance Issues Required reviews and audits  ACH  S.A.F.E. Act Unlimited share insurance for non-interest bearing accounts expires For information on Share Insurance: http://www.ncua.gov/Legal/GuidesEtc/GuidesManuals/NCUAHowYourAcctInsured.pdf http://www.ncua.gov/Legal/GuidesEtc/GuidesManuals/NCUAHowYourAcctInsured.pdf

8. CFPB Focus as of June 2012: For additional information: http://www.consumerfinance.gov/notice-and- comment/http://www.consumerfinance.gov/notice-and- comment/ And: http://www.consumerfinance.gov/regulations/fall-2011-statement- of-regulatory-priorities/http://www.consumerfinance.gov/regulations/fall-2011-statement- of-regulatory-priorities/ Electronic fund transfers RESPA Equal Credit Opportunity Act Fair Credit Reporting Privacy of consumer financial information Truth in Savings & Lending S.A.F.E. Act Home Mortgage Disclosure Act Fair debt collection practices Private education lending Pre-dispute Arbitration Overdraft programs Prepaid cards Elder Abuse CFPB

9. NCUA Pending Changes Information on Fleet: http://www.ncua.gov/News/Press/NW20120918CUFlex.pdfhttp://www.ncua.gov/News/Press/NW20120918CUFlex.pdf Information on Reg. Relief: http://www.ncua.gov/about/Pages/Board%20Actions/BAB20120920.aspxhttp://www.ncua.gov/about/Pages/Board%20Actions/BAB20120920.aspx Fleet Vehicle definition amended – 5 Newly Proposed Rules for Regulatory Relief  “Small Entity” – from $10M to $30M  Rural District Definition  Variable-rate TIPS Investments  Payday Alternative Lending

10. Thank you for joining me for this 3 nd Quarter Review of compliance issues important for your credit union!