Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB will begin taking whistleblower tips. The CFPB welcomes information about potential violators of consumer protection laws by any of the whistleblower channels it has set up.

The CFPB published four interim final regulations in the Dec. 16 Federal Register:

  • Regulation F – Fair Debt Collection Practices Act
  • Regulation I – Disclosure Requirements for Depositary Institutions Lacking Federal Deposit Insurance
  • Regulations N – Mortgage Acts and Practices—Advertising; and Regulation O Mortgage Assistance Relief Services (published with Reg N)

Each of the four is effective Dec. 30, 2011, with a comment period ending Feb. 14, 2012

The CFPB published three interim final regulations in the December 19 Federal Register:

The interim final rules are a republishing of the transferred regulations showing the transfer of the authority to the CFPB. Each one is effective Dec. 30, 2011, with a comment period ending Feb. 17, 2012.

The CFPB has published a revised version of RESPA into the Federal Register. The revision is to update the regulation to show the transfer of authority to the CFPB. The regulation is effective Dec. 30, and comments are due by Feb. 21, 2012.

National Credit Union Administration (NCUA)

The NCUA released the results of the Dec. 15, 2011, board meeting. The meeting covered a large number of topics, from share insurance, which stands at 1.32-percent equity, to several proposed rules.

The NCUA has issued a proposed rule to eliminate the Regulatory Flexibility Program and provide regulatory relief to federal credit unions. The proposed rule will remove part 742 of the NCUA regulations and will also remove or amend related rules to ease the compliance burden while retaining certain safety and soundness standards. Those other rules pertain to eligible obligations, charitable contributions, non-member deposits, fixed assets, investments, and member business loans. Comments are due 60 days after publication into the Federal Register—approximately Feb. 15, 2012.

The NCUA has also issued a proposed rule to amend its loan participation regulation. The proposed rule would better detail regulatory expectations regarding key aspects of a loan participation purchase, such as the loan participation policy, loan participation agreement, and ongoing monitoring of the loan participation. Comments are due 60 days after publication into the Federal Register—approximately Feb. 15, 2012.

The NCUA issued an advanced notice of proposed rulemaking regarding maintaining access to emergency liquidity. The proposal would require federally insured credit unions, as part of their contingency funding plans, to have access to backup federal liquidity sources for use in times of financial emergency and distressed economic circumstances. Comments are due 60 days after publication into the Federal Register—approximately Feb. 15, 2012.

The NCUA issued a final rule amending its rule governing corporate credit unions. The final rule makes technical corrections to and clarifies certain provisions of the NCUA corporate credit union rules. This rule will be effective 30 days after publishing in the Federal Register—approximately Jan. 15, 2012.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: Dec. 20, 2011.

Financial Accounting Standards Board (FASB)

The FASB has released accounting standard update 2011-10 regarding Topic 360 (Property, Plant, and Equipment). The update is a scope clarification on the derecognition of in Substance Real Estate.

Office of the Comptroller of the Currency (OCC)

The OCC issued guidance OCC 2011-49. While the OCC does not regulate credit unions, the information in the guidance covers potential issues with foreclosed residential properties and may be of interest to credit unions that are going through the foreclosure process.

Financial Crimes Enforcement Network (FinCEN)

FinCEN announced that it will launch a new Money Service Business (MSB) registration website during the week of Jan. 23, 2012. The new site will provide MSBs, banks, regulators, law enforcement, and the general public with the ability to access, search, verify, download and print MSB registration information.

FinCEN has also announced the extension of the deadline for adopting the new currency transaction report (CTR) and suspicious activity report (SAR). Credit unions will be able to file either the legacy forms or the new reports until March 31, 2013, at which point the new forms will be required.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal, NCUA.