February 03, 2014

Compliance Monitor highlights mortgage, CUSO rules

Feb. 4, 2014 – The February NAFCU Compliance Monitor is now available, with articles focusing on NCUA's new resources concerning the new CFPB mortgage rules and on NCUA's final rule on credit union service organizations.

NAFCU Regulatory Compliance Counsel Ricardo Piñeres highlighted NCUA's regulatory alert on the new Ability-to-Repay/Qualified Mortgage rule, which requires mortgage servicers to consider factors including the borrower's income, monthly payments, debts, credit history and other things that might predict success.

Piñeres also suggested credit union staff look over the regulatory alerts on CFPB's new rules under the Home Ownership and Equity Protection Act and its mortgage servicing rules under the Truth in Lending Act and Real Estate Settlement Procedures Act.

An article by Regulatory Compliance Counsel Alicia Nealon goes over NCUA's new CUSO rule, explaining that NAFCU and others have concerns about the rule's implications.

"Since the NCUA Board proposed the rule in 2011, many commenters, including NAFCU, raised concerns about the agency's authority to impose the reporting requirement and directly regulate CUSOs," Nealon wrote. "In the preamble to the final rule, the NCUA Board acknowledges the agency does not have direct statutory or regulatory authority over the operations of CUSOs, but contends that NCUA does have the authority to regulate FCUs' lending and investment in CUSOs."

Finally, the Monitor also features the "Compliance Forum" of frequently asked or particularly important compliance questions and answers from NAFCU staff. This month's "Forum" includes discussion of the Unlawful Internet Gambling Enforcement Act and NCUA's Charitable Donation Accounts rule.