As a result of the effects of the Dodd-Frank Act, the Bank Secrecy Act, and the Department of Housing and Urban Development, credit unions have found themselves saddled with overwhelming regulatory burdens.
To keep up with the regulations, credit unions have begun hiring new employees, implementing new software and hiring third parties to conduct compliance reviews and audits, CUTimes.com reports.
San Diego Medical Federal Credit Union, as a result of the new regulations, has seen expenses of up to $5,000 per month, Jonathan Zide, the credit union's compliance officer and director of marketing and online services, told CUTimes.com.
“We simply don’t have the time, nor the expertise, to keep up with all of the changes and new requirements,” Zide said, CUTimes.com reports.
To keep up with its compliance requirements, twenty percent of Zide's time is now devoted to studying regulatory documents and implementing changes at the credit union. Frontline staffers also spend approximately 10 percent of their time on compliance work, forcing the credit union to hire a shared compliance officer.
“Although we are a leading credit union in regards to return on assets, the NCUA has significantly scrutinized us, like they have with many of our peers,” Zide said, CUTimes.com reports.