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This month's Compliance Monitor provides an overview of CFPB rules on mortgage loan originators, homeownership counseling disclosure rules.

April 2, 2013 – The April issue of NAFCU's Compliance Monitor provides credit unions an in-depth look at the CFPB's rule on mortgage loan originator requirements and the new homeownership counseling disclosure requirement set by the Dodd-Frank Act.

The newsletter leads off with a detailed look at the MLO rule, which is set to take effect next Jan. 10 and includes requirements for loan originator qualifications and screening, training and disclosures.

In the article, Regulatory Compliance Counsel JiJi Bahhur discusses the credit union's responsibility for ensuring that its loan originators demonstrate financial responsibility, character and general fitness. She explains that to make this determination in accordance with the final loan originator compensation rules, the credit union must obtain a criminal background check, a credit report and information about any administrative, civil or criminal findings by any government jurisdiction. She also looks at required training and disclosures applicable.

The CFPB also issued a final rule under Regulation X that will require credit unionsto provide consumer mortgage loans applicants a list of homeownership counseling organizations. This rule also takes effect next Jan. 10. In the article, Regulatory Compliance Counsel Bernadette Clair notes the CFPB is still designing a website portal credit unions can use to obtain such lists.

The Compliance Monitor newsletter is online and available to NAFCU members only.

• April Compliance Monitor (members only)