Welcome to CUNA's compliance blog! Visit often to check out the latest federal regulatory developments, Q&As, and musings from CUNA's Compliance Team.5/22/2013 11:41:50 PM2013-05-22T23:41:50-05:00CUNA/Compliance/Comp Blog/Blogs/2013/What's New - May 22nd

  Federal Register:   Remittance Transfer Rule (Electronic Funds Transfer, Regulation E) The 2013 Final Rule on remittance transfers was published in today’s Federal Register, with an effective date October 28, 2013.  Click here for the Federal Register .   CFPB Establishes Framework to Better Coordinate

2013-05-22T08:46:49-05:002013-05-23T04:41:51ZCUNA/Compliance/Comp Blog/Blogs/2013/Certain Mortgage Rule Changes Become Effective June 1st.

By now I am sure that most of you are aware that three provisions or rule changes within the CFPB’s Mortgage lending rules are scheduled to become effective on June 1st---about two weeks from now. The three changes are the Escrow Requirements under Regulation Z; the Prohibition on Mandatory Arbitration Clauses and the Prohibition on Single Premium Credit Insurance---both of which are in the Loan Originator Compensation Rule. Further details of these provisions are provided below. Escrow Requirements: The rule expands the time period that escrow accounts must be maintained from one year to at least five years from consummation. The rule also creates an exemption from the escrow requirement for small creditors that operate predominately in rural or underserved areas. This change applies to loan applications received on or after June 1st for closed-end “higher-priced” first-lien mortgage loans secured by a borrower’s principal dwelling. Prohibition on Mandatory Arbitration Clauses: This provision prohibits mandatory arbitration clauses and waivers of other consumer rights and prohibits the inclusion of terms requiring non-judicial procedures to resolve claims regarding any closed-end mortgage loan secured by the borrower’s dwelling or any HELOC secured by the borrower’s principal dwelling. This provision only applies to loans for which an application is received on or after June 1st. Credit unions should make sure that loan documents used on or after the effective date do not contain arbitration or similar clauses. Prohibition on Financing Single-premium Credit Insurance: This provision prohibits the financing of any premiums for credit insurance in connection with any closed-end mortgage loan secured by the borrower’s dwelling or any HELOC secured by the borrower’s principal dwelling. The prohibition does not apply to credit insurance for which premiums are calculated and paid in full on a monthly basis. This provision also only applies to loans for which an application is received on or after the effective date. Although the effective date was initially set as June 1st 2013, at CUNA’s urging, the CFPB has recently issued a proposal to temporarily delay the effective date. The CFPB is accepting comments on the delay until May 25th and plans to issue a final rule shortly afterwards delaying the effective date. We will keep you informed of any new developments.

2013-05-17T15:16:52-05:002013-05-23T04:41:51ZCUNA/Compliance/Comp Blog/Blogs/2013/What's New - May 17th

Happy Friday!   CFPB Clarifies Escrows Final Rule The Bureau has issued a final rule clarifying and making amendments to its previously issued 2013 Escrows Final Rule. It establishes a temporary provision to ensure existing protections remain in place for higher-priced mortgage loans until the expanded provisions take effect in January 2014.  The rule also  clarifies how to determine whether or not a county is considered "rural" or "underserved" for purposes of applying an exemption.  The new final rule will be final unless a later final rule is issued. Click here for the CFPB’s Blog posting on clarifications to the escrow final rule.   2013 Final List of Rural and Underserved Counties The CFPB has issued a final list determining both rural and underserved county status regarding the Escrows Rule based on the proposed rule posted by the Bureau on March 12, 2013. This final list is identical to the preliminary list posted on March 12. Some counties' status as rural or non-rural may change from the 2013 list to the 2014 list because of updated information from the 2010 Census.  For more information click here for CFPB’s Blog posting (it's below the Escrow Final Rule posting).   NCUA Derivatives Proposal For more information on yesterday’s NCUA Board Meeting you may click here to view the agency’s Board Action Bulletin. Today’s coverage of the Board’s actions in News Now is here and here. 

2013-05-17T08:37:19-05:002013-05-23T04:41:51ZCUNA/Compliance/Comp Blog/Blogs/2013/What's New - May 16th

  Derivatives Program Proposal Released by NCUA Credit unions that have assets of more than $250 million, are well-managed, and have the appropriate expertise would be permitted to use simple derivatives to hedge against interest rate risks under a just-proposed National Credit Union Administration program.  NCUA is seeking comments for 60 days on the proposal.  For more information see the story in News Now here.

2013-05-16T11:58:33-05:002013-05-23T04:41:51Z