Legal Briefs September 23, 2010


Federal Reserve Board

The FRB released the 2009 HMDA DataThe data reflects ongoing difficulties in the housing and mortgage markets.


National Credit Union Administration

The NCUA issued final rule on displaying official sign for permanent increase in the share insurance amount.  The new share insurance signs will reflect the permanent change in the share insurance amount to $250,000.  The effective date of the rule is September 2, 2011 and the mandatory compliance date is March 2, 2011.

The NCUA released the results from the September 16, 2010 Board Meeting.  The meeting focused on the NCUSIF premium, short-term small loans, secondary capital accounts for low income credit unions, FASB standards, and the Dodd-Frank Act.

The NCUA chairman Debbie Matz released a statement about the Share Insurance Fund Premium.

The NCUA issued Letter number 10-FCU-02.  The letter advises federal credit unions that use multi-featured open-end lending to review their policies and procedures to ensure compliance with Reg Z changes.  The letter also contains some recommended best practices from the NCUA.


Office of Foreign Assets Control

The OFAC SDN list was updated again.  Last update September 10, 2010.



The FinCEN has issued guidance on Informal Value Transfer Systems.  The guidance states that “Financial institutions should continue to be alert to the possible use of IVTS to move funds linked to laundering of criminal proceeds or to finance terrorism.”



The FASB has released the 2011 U.S. GAAP Financial Reporting Taxonomy for public review and comment.  The 2011 Taxonomy includes a section for banking and financial institutions.  Comments are due by October 31, 2010.


Division of Credit Unions

The Division of Credit Unions published OREO Property Guidance and Best PracticesThis guidance provides information for boards, management, and staff of credit unions with limited previous experience handling OREO property.

The Division of Credit Unions explained that state examiners are going to start asking credit unions with a state-wide field of membership to provide the documentation on how the credit union is in compliance with the state FOM rules.  This will include the official notice that went out to other credit unions and the credit union’s board resolution of approval.

The Division of Credit Union reminds credit unions that the exam reports are confidential DFI property and not subject to disclosure during a lawsuit.  Even pursuant to a subpoena, the exam reports are specifically protected from disclosure under the law.

The Division of Credit Unions will soon start its rulemaking on assessing civil money fines.  The rulemaking announcement (CR-101) should go out September 21, and be published on September 26.  The DCU has indicated that it will take as long as necessary to work through the issue with stakeholders.



The IRS released a new form to help small businesses claim new health care tax credit.  The draft version of the form will allow small businesses and tax-exempt organizations calculate the small business health care tax credit when they file income tax returns next year.



The HUD announced that FHA short refinancing option is now available.  Mortgagee letter 2010-23 provides a refinance option for homeowners who are current, but upside-down on their mortgages.



The OCC released updated examination procedures for Regulation Z.  The new booklet reflects the substantive changes to Regulation Z.

The OCC released updated examination procedures for RESPA.  The new booklet reflects changes including a standardized and binding GFE, HUD-1, and HUD-1A.



The NACHA released a Rules Simplification Resource PageThe resource page provides tools to help financial institutions with the simplified NACHA Operating Rules that will go into effect January 1, 2011.


Department of Justice

The DOJ published ADA final rulesThe rule adopts accessibility standards for the Americans with Disabilities Act that meet the guidelines of the US Access Board.  The effective date of the new rules will be March 15, 2011.



The OTS issued an exam procedures CEO letter regarding regulation DD.  The letter reviews the changes to the exam procedure that implement recent regulatory changes to Reg DD.

Posted in NCUA.