fourth quarter 2012 troubled debt restructuring s.a.f.e. act unlimited share insurance coverage...
DESCRIPTION
Eliminates dual tracking Calculate delinquency based on modified loan terms Nonaccrual on loans > 90 days past due Policies & ProceduresTRANSCRIPT
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Compliance Outlook2012 Fourth Quarter2013 First Quarter
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Program OverviewFourth Quarter 2012• Troubled Debt Restructuring• S.A.F.E. ACT• Unlimited Share Insurance Coverage
First Quarter 2013• CFPB• NCUA
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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
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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
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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
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Looking Ahead to 2013CFPB NCUA
• High Cost Mortgages• Escrow Requirements• Ability to Repay• Servicing
• Small Credit Union Rule
• Low Income Designation
• CU Troubled Condition
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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/
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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/
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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/
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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/
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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
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Thank you for joining me for this overview of the Compliance Outlook.
Stay Tuned……..