compliance outlook
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Compliance Outlook. 2012 Fourth Quarter. 2013 First Quarter. Program Overview. Fourth Quarter 2012 Troubled Debt Restructuring S.A.F.E. ACT Unlimited Share Insurance Coverage. First Quarter 2013 CFPB NCUA. Troubled Debt Restructures. Eliminates dual tracking - PowerPoint PPT PresentationTRANSCRIPT
Compliance Outlook2012 Fourth Quarter2013 First Quarter
Program OverviewFourth Quarter 2012• Troubled Debt Restructuring• S.A.F.E. ACT• Unlimited Share Insurance Coverage
First Quarter 2013• CFPB• NCUA
Troubled Debt Restructures• Eliminates dual tracking• Calculate delinquency based on modified loan terms• Nonaccrual on loans > 90 days past due• Policies & Procedures
http://www.ncua.gov/about/Documents/Agenda%20Items/AG20120524Item3b.pdf
S.A.F.E. ACT• Registration Renewal• Annual Audit• Federally Insured CUs – no CE
Training• CU not Federally Insures – required
CE Traininghttp://www.ncua.gov/Resources/CUs/Pages/SAFE.aspx
NCUA Share InsuranceUnlimited Share Insurance ENDS
Recommendations:• Determine affected
accounts• Communicate change• Update disclosures
December 31, 2012
http://www.ncua.gov/Resources/CUs/Pages/SAFE.aspx
Looking Ahead to 2013CFPB NCUA
• High Cost Mortgages• Escrow Requirements• Ability to Repay• Servicing
• Small Credit Union Rule
• Low Income Designation
• CU Troubled Condition
CFPB – High Cost MortgagesCovered Loans:• Secured by principal
dwelling• Purchase money
mortgages• Refinances• Close-end home
equity loans• Open-end credit
plans
Rule effect:• Ban balloons and prepayment
penalties;• No loan modification and
payoff fees;• Late fee capped at 4%; and• Prohibits lenders from rolling
closing costs into the loan amount.
http://www.consumerfinance.gov/regulations/high-cost-mortgage-and-homeownership-counseling-amendments-to-regulation-z-and-homeownership-counseling-amendments-to-regulation-x/
CFPB – Escrow Accounts
Exemption:• Serve rural & underserved areas• Assets < $2 billion• Originate < 500 first lien mortgages
AND• Not escrow currently
Escrow accounts must be established on Higher-priced mortgage loans and maintained for at least 5 years.
http://www.consumerfinance.gov/regulations/escrow-requirements-under-the-truth-in-lending-act-regulation-z/
CFPB – Ability-to-RepayCredit Unions must consider 8 underwriting factors:
1. Current income or assets2. Current employment status3. Monthly payment on loan4. Monthly payment on other loans5. Payments on related obligations6. Current debt obligations7. Monthly debt-to-income ratio / Residual income8. Credit History
http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in-lending-act-regulation-z/
CFPB – Servicing RulesFinal Rules Cover Nine Topics:
1. Periodic billing statements2. Interest-rate adjustment notices for ARMs3. Prompt payment crediting and payoff statements4. Force-placed insurance5. Error resolution and information requests6. Servicing policies, procedures, and requirements7. Early delinquency intervention8. Continued contact with delinquent members9. Loss mitigation procedures
http://www.consumerfinance.gov/regulations/2013-real-estate-settlement-procedures-act-regulation-x-and-truth-in-lending-act-regulation-z-mortgage-servicing-final-rules/
NCUA – New RulesFinal Rules Cover Nine Topics:
1. Small Credit Unions• $50 million in assets• Streamlined exams – NO change + $10
million2. Low income designation acceptance now
90 days3. Troubled Condition Credit Unions
Thank you for joining me for this overview of the Compliance Outlook.
Stay Tuned……..