Legal Briefs April 7, 2011

National Credit Union Administration

The NCUA released Letter to Credit Unions 11-CU-03. This letter to credit unions reviews the state of the credit union industry and financial trends. The NCUA will be focusing on credit risk, interest rate risk, and concentration risk.

Office of Foreign Assets Control

The OFAC SDN list was updated again. Last update April 04, 2011.

IRS

The IRS issued Interim guidance on information reporting of employer-sponsored health coverage. The Interim guidance notes that reporting is voluntary for all employers for 2011 and small employers in 2012. The IRS also emphasizes that this new reporting to employees is for their information only.

FASB

The FASB released accounting standards update to improve the financial reporting of TDRs. The Update 2011-02 clarifies which loan modifications constitute troubled debt restructurings. Credit unions should apply the amendments prospectively for the first interim or annual period beginning on or after June 15, 2011.

Questions? Contact our Compliance team: 1.800.546.4465, compliance@nwcua.org

Posted in NCUA.