Legal Briefs November 16, 2010
Your update of the regulatory landscape.
Federal Reserve Board
The FRB announced a new online resource that provides practical answers to questions about credit reports, credit scores, and the importance of protecting personal credit history. The Consumer’s Guide to Credit Reports and Credit Scores describes the content of a credit report, explains how a credit score is used, and discusses the role of credit bureaus in collecting and disseminating this information.
National Credit Union Administration
The NCUA issued Letter to Credit Unions 10-CU-22. The Letter covers the NCUA’s Merger Partner Registry.
The NCUA issued Opinion Letter 10-0974. The opinion letter covers federal credit unions’ compliance with the Equal Credit Opportunity Act and accepting alternative credit reference reports.
The NCUA issued Opinion Letter 09-1044. The opinion letter covers the permissibility of using fully automated systems for loan application, underwriting, and funding, and a caution about ensuring the system addresses all regulatory compliance issues.
The NCUA issued Opinion Letter 10-0984. The opinion letter covers disclosing credit life insurance conversion to debt cancellation coverage. Under Reg Z, members would need to be provided with the option to choose if they want the insurance converted.
The NCUA announced the creation of two new bridge corporate credit unions. The new bridge corporate credit unions will be assuming the operations of Members United Corporate and Southwest Corporate.
Office of Foreign Assets Control
The OFAC SDN list was updated again. Last update November 04, 2010.
Division of Credit Unions
The DFI Division of Credit Unions, along with the NCUA closed The Union Credit Union in Spokane. Alaska USA FCU will assume all loans and assets of The Union and Numerica Credit Union will assume all deposits and membership.
The FASB released an exposure draft that seeks input on its proposal to improve accounting standards for repurchase agreements. The amendments in the proposed rule are intended to simplify the accounting for repurchase transactions by removing the assessment of effective control, the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets, as well as implementation guidance related to that criterion. Comments are due by January 15, 2011.