|| Shea (left) and Van Beek discussed future
compliance issues during yesterday’s webcast.
– NAFCU photo
Nov. 17, 2011 – Credit unions learned during a NAFCU webcast yesterday what to look for next year in the way of regulatory compliance developments, including Regulation Z changes addressing borrowers’ ability to repay mortgage loans.
NAFCU Director of Regulatory Compliance Steve Van Beek reminded webcast participants that the Dodd-Frank Act granted the Consumer Financial Protection Bureau the authority to propose and finalize a number of consumer regulations. Van Beek also discussed current events related to the implementation of rules on interchange fees and the continued focus on checking accounts.
He said the CFPB can finalize consumer rules proposed in recent years by the Federal Reserve and other agencies without having to propose them again. In addition, he said the bureau has indicated it is looking to finalize an already-proposed Reg Z rule requiring financial institutions to determine borrowers’ ability to repay mortgages early next year. NAFCU Regulatory Affairs Counsel Dillon Shea said other previous Fed proposals regarding closed-end loans and home equity lines of credit could be picked in the future by the CFPB.
Van Beek also drew webcast viewers’ attention to a Dodd-Frank requirement for financial institutions to collect information on business loans. He said the law defines business loans in a much broader manner than NCUA does. Therefore, credit unions that do not operate member business lending programs may have to report certain lending activities under this provision. The timeframe and scope of this information-collection requirement will depend on the CFPB’s future rulemakings.
Yesterday’s webcast will be available on demand for six months. Credit unions can also purchase a recording of this webcast on CD.