WASHINGTON (8/13/12)--Congress is on recess until early September but there are several regulatory deadlines in the weeks ahead of which credit unions need to be aware.
- The Commodity Futures Trading Commission: A proposed rule exempting certain swaps executed by cooperatives from the agency's swap-clearing requirement. The proposed rule allows cooperatives to be exempt if its members are non-financial entities or financial entities that are eligible for a small financial institutions' exemption. The rule would only allow the exemption to apply to swaps entered into with a member of the exempt cooperative in connection with originating loans for its members or swaps entered into to hedge or mitigate risk. Comments are due to the agency on Aug. 16.
- Federal Deposit Insurance Corporation: A proposed rule that provides a list of the activities that would be considered in determining whether a company is predominantly engaged in financial activities for purposes of enforcing the Dodd-Frank Act. The proposed rule deals with activities such as extending credit, securitization, community development activities, and insurance. Comments are due to the agency on Aug. 17.
- Consumer Financial Protection Bureau (CFPB): The bureau is seeking information regarding the programs and products that credit unions and other financial institutions have in place for senior citizens. It plans to use the information, combined with ongoing research, to develop goals for programs that provide financial literacy and counseling for senior citizens. The Credit Union National Association (CUNA) requests comment by Aug. 10. Comments are due to the bureau by Aug. 20.
- CFPB: Combined Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) mortgage disclosure forms. This proposal describes the single form that credit unions and other lenders would have to give all persons to whom they are issuing mortgages. It combines the separate disclosure requirements mandated by RESPA and TILA and seeks to simplify the disclosure form and eliminate redundancies. In addition, the proposed rule would require most up-front costs associated with a closed-end mortgage secured by land or a dwelling to be included in the finance charge. The proposal would also require lenders to keep records relating to the new forms in a standard, "machine readable" electronic format which may be problematic for smaller institutions. Comments on the proposal are generally due Nov. 6. However, provisions regarding the finance charge and the annual percentage rate, as well as the delayed effective date of several of the new disclosures under the Dodd-Frank Act, are open for comment only through Sept. 7. CUNA asks credit union to submit their comments to CUNA by Aug. 10. Comments are due to the CFPB by Sept. 9.
- CFPB: A proposed rule implementing changes on providing credit counseling information to people who take out high-cost mortgages. The proposal would mandate that lenders distribute a list of homeownership counselors or counseling organizations to consumers within a few days after applying for any mortgage loan. It implements provisions of the Dodd-Frank Wall Street Reform Act and makes changes to the Home Ownership and Equity Protection Act (HOEPA). The proposal also would implement a requirement that first-time borrowers receive homeownership counseling before taking out a negatively amortizing loan. According to the bureau, under the proposed rule "most types of mortgage loans secured by a consumer's principal dwelling, including purchase money mortgage loans, refinances, closed-end home-equity loans, and open-end credit plans (i.e., home-equity lines of credit, or HELOCs) are potentially subject to HOEPA coverage. Reverse mortgages would still be excluded.'' Comment due Sept. 7.
- CFPB: Proposal on financial education practices. The agency is seeking information on what are the most effective financial education programs and how can the agency better disseminate financial literacy information. The agency asks respondents to answer questions, such as: In your experience, what are consumers' most common financial decision-making challenges? Is there a common set (or lack) of habits, attitudes, or practices, and if so, what are they? Comments are due Oct. 31.
Use the links below to access the rules.