Feb. 6, 2013 – NCUA plans to issue a proposed rule on derivatives in the first six months of the year, and the CFPB expects to finalize its international remittance rule in the first quarter, NCUA Chairman Debbie Matz and CFPB Director Richard Cordray said in an NCUA webinar Tuesday.
Matz said the proposal on derivatives would allow some credit unions limited authority to hedge interest-rate risk with simple derivatives.
- NCUA will issue supervisory guidance, to be shared with credit unions, on the evaluation of institutions’ enterprise risk management. That too is expected in the first six months of the year Matz said.
- The final remittance rule is expected to be made final this month or in March, Cordray said. A 90-day implementation period is anticipated. (NAFCU supports a delay, but it proposed six months.)
- A webinar on remittances and a plain-language version of the rule are in the works, Cordray said. The bureau also wants to know about credit unions’ experience under the final rule. “We want to keep people able to provide this service to their members,” he said.
- The CFPB is working to translate the bureau’s final rules on mortgage lending into plain English. This is particularly to help smaller institutions, he said, and will focus on what institutions need to know and how to comply.
- Portions of the CFPB mortgage rules will, in the end, not affect certain credit unions at all. That’s true of the mortgage servicing rule “and may be true of the QM [qualified mortgage] rule,” Cordray said.
NAFCU is working with both agencies to prevent the unnecessary growth of regulatory burden for credit unions. NCUA said it will post the archived webinar online.