Transcript Deceased Member Accounts: an eTrain Webinar

2009-2010 Regulatory and
Legislative Review & Preview
Presented to the CUCP
October 8, 2009
What About…?
• Risk-based pricing notices – NCUA and
others (Comments were due by 8/18/08.)
– FACTA: Required when a credit report is used to
grant credit to a consumer on terms “materially less
favorable than the most favorable terms available to a
substantial portion of consumers by that creditor.”
• Revised Model Privacy Notices – NCUA
and others (Comments were due 5/29/07. In April
2009 SEC reopened comments until 5/20/2009.)
May 2009
• May 1st - Revised Home Valuation Code of
Conduct
– Applies to all loans originated after effective
date that are purchased by Fannie or Freddie.
– Q&A issued 7/22/2009.
• May 26th – NCUA Share Insurance
coverage of $250,000 continued until
12/31/2013.
– Official signage choices?
June 2009
• June 15th - CA Foreclosure Prevention Act
(ABX2 7, SBX2 7)
– Provides specified borrowers an additional 90
days in the foreclosure process, unless the
mortgage loan servicer responsible for
servicing the borrower’s loan establishes that
it has implemented a “comprehensive loan
modification program,” and the servicer
obtains an exemption from the DOC, the DFI,
or the DRE
July 2009
• July 2nd – Reg D: Definition of savings
deposit (Fed)
– Amends definition of “savings deposit” to
eliminate sub-limit of three transfers or
withdrawals that can be made by check, debit
card, etc. In other words, all “convenient”
transfers limited to six per month.
July 2009
• July 30th – Reg Z: MDIA (Fed)
– Broadens and adds to requirements early mortgage
disclosures (i.e., GFE)
– Adds waiting period between disclosure and loan
closing (7 business days)
• July 31st – SAFE Act Compliance. See
Spring/Summer 2010.
August 2009
• August 20th – Reg Z: CARD Act provisions
(Fed)
– 45 day notice of APR increases, and
– Sending periodic statements at least 21 days
before the due date
September 2009
• September 12th - Acknowledgements for
SAR submissions (FinCEN)
– SAR narratives?
• September 18th - International ACH
Transaction (IAT) Rules and Format
(NACHA)
– FIs must be able to identify IAT payments and
perform due diligence as required by OFAC.
October 2009
• October 1st - Reg Z: Unfair or Deceptive
Mortgage Lending & Advertising (Fed)
– Applies to “higher-priced mortgages”
– Advertising provisions apply to HELOCs and
closed-end mortgage loans
– HMDA amended to match
October 2009
Changes to Reg Z Advertising
• HELOCs
– Balloon payments
– Tax implications
– Promotional rates and payments
– TV and radio ads
– Clear & conspicuous: promotional rate or
payment
– “Reasonably current” index and margin
October 2009
Changes to Reg Z Advertising
• Closed-end RE
– Clear and conspicuous standard
– Adds new section on dwelling-secured
– TV and radio/reasonably current margin and index/tax
implications
– Misleading comparisons/statements, or gov’t.
endorsements
– Using current lenders name in ad not sent by current
lender
November 2009
• November 1st – ID theft “red flag”
guidelines: extension of enforcement for
state-licensed CUs (FTC)
• November 15th – Last date to file new
Form 990 for Tax Year 2008 (IRS)
December 2009
• December 1st - Reg GG: Unlawful Internet
Gambling Enforcement (Fed)
– Commercial/business accounts
• Notify all that restricted transactions are prohibited
• Identify, block, prohibit, or restrict prohibited transactions
• One year delay?
• ??? – Reg CC: Consolidation of check
processing centers (Fed)
– Down to 5 centers; last paper check processed by LA
will be 11/13
January 2010
• January 1st – RESPA: New GFE Form;
modifications to HUD-1 & HUD-1A (HUD)
– GFE: three-page standardized form. Various
permissible tolerances (zero, 10 percent, and
unlimited) regarding fees charged by a lender at
settlement as compared to the fee amount stated on
the GFE. Includes a “trade-off” table and a mortgage
shopping chart. Must be given within 3 business days
of completed application. No charge except credit
report fee until after GFE given.
January 2010
• January 1st – TIS/Part 707: Overdraft
privilege (NCUA)
– Disclosure of MTD and YTD O/D fees (paid
and unpaid) and available balance info
• Reg E: proposal regarding opt-in/out, plus debit
hold provisions (Comments were due by
3/30/2009.)
January 2010
• January 1st - Reg S: Reimbursements under
RTFPA (Fed)
– Personnel fees go up
– No $0.25 per page permitted if doc electronically
stored
• January 1st - CA AB 1160: Translation of
mortgage contracts negotiated in Spanish,
Chinese, Tagalog, Vietnamese, or Korean
• January 1st - CA AB 329: Reverse mortgages
February 2010
• February 14th – Reg Z: Private education loans
(i.e., non-federally guaranteed student loans)
(Fed).
• February 22nd – Reg Z: CARD Act provisions!!!
(Fed)
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What provisions?
All open-end or credit cards only?
Move up July 1st Reg Z open-end?
Expedited compliance (i.e., December ’09)?
Spring/Summer 2010 (?)
• SAFE Act: Registration of mortgage loan
originators (NCUA Part 761)
– Registration vs. licensing
– Comment period ended August 10, 2009.
Final rule expected by year-end.
– 180 day delay in implementation after the
Registry is up and running
– CA AB 34 – likely vehicle for CA’s licensing
compliance?
July 2010
• July 1st – NCUA Part 717: Accuracy of
credit information (NCUA and others)
– Section 312 of FACTA
– Must establish and implement policies and
procedures regarding “accuracy & integrity” of info
provided to credit bureaus
– Ability of consumer to dispute directly with furnisher of
info
July 2010
• July 1st – Reg AA: Unfair or deceptive
credit card practices (Fed) – status?
• July 1st – Reg Z: Disclosures for openend/credit cards (Fed) – status?
– Interplay with CARD Act?
– MFOEL (e.g., LoanLiner)?
August 2010
• August 22nd – Reg Z: Remaining CARD
Act provisions (Fed)
– Assessment every six months after an APR is
increased to determine if the rate should then
be decreased (look-back is January 1, 2009)
– Penalty fees must be “reasonable and
proportional”
– Gift card provisions
Proposed Regs
• Proposed Interagency Appraisal & Eval.
Guidelines (Comments due 1/20/09.)
• NCUA: Corporate restructuring (Comments
due 4/6/2009. Proposed rule - 11/19/2009)
• FTC: 2 ANPRs regarding mortgage acts and
practices (comments were due by 7/15 & 7/30)
– One ANPR addresses activities that occur through the mortgage
process (advertising, origination, appraisals, etc.)
– The other addresses loan mod and foreclosure prevention
practices
Proposed Regs
• Interagency: Flood Q&A Proposal
(Comments due 9/21/2009)
• Reg Z: Closed-end mortgage (Fed – comments
due 12/24/2009
• Reg Z: HELOCs (Fed – comments due 12/24/2009)
Federal & State Legislative Issues
• Federal:
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H.R. 3380 – CU MBLs
H.R. 2382 - Interchange
H.R. 3639 – Expedited CARD Act compliance
Mortgage “cram-down” in BK
Consumer Financial Protection Agency
Consolidation of Regulators
• CA:
– Mortgage modifications
– Review of tax structure
– AB 33: consolidation of regulators
Questions?
• Research & Information Toll-free Hotline:
877.243.5728