Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB has released its inaugural semi-annual report summarizing its activities and accomplishments between July 21 and Dec. 31, 2011.

National Credit Union Administration (NCUA)

The NCUA issued a final rule on interest rate risk (IRR) policy and program. The rule will require certain federally-insured credit unions to have written policies to address IRR management and have effective IRR programs. The rule will apply to credit unions with assets of $10 million or greater. Affected credit unions will have until Sept. 30, 2012, to comply

The NCUA has issued a proposed rule regarding loan workouts and troubled debt restructuring (TDR) reporting. The rule will require federally-insured credit unions to maintain written policies to address the management of loan workout. Comments are due within 30 days of publishing in the Federal Register—approximately Feb. 27, 2012.

The NCUA has issued an advance notice of proposed rulemaking to allow federal credit unions to use financial derivatives to offset IRR. The NCUA is seeking comment on how to modify its rule on investment and deposit activities to permit federal credit unions to enter derivatives transactions for the purpose of offsetting IRR. Comments are due 60 days after publishing in the Federal Register—approximately March 27, 2012.

The NCUA posted the list of the one-third of NCUA rules that will be reviewed in 2012. The 2012 review will be over parts 700-710, which includes all parts of 701.

The NCUA issued joint guidance on junior lien loan loss allowances in NCUA Accounting Bulletin #12-1. The interagency supervisory guidance on allowance for loan and lease loss (ALLL) estimate practices focuses on loans and lines secured by junior liens in residential real property.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: Jan. 26, 2012.

Financial Crimes Enforcement Network (FinCEN)

FinCEN announced the launch of a new Money Services Business (MSB) Registration site. The new MSB Registration site will improve the availability of MSB registration information.

United States Department of Justice (DOJ)

The United States DOJ announced the formation of the Financial Fraud Enforcement Task Force’s New Residential Mortgage-Backed Securities Working Group. The group is tasked with streamlining and strengthening current and future efforts to identify, investigate, and prosecute instances of wrongdoing in packaging, selling, and valuing of residential mortgage-backed securities.

Internal Revenue Service (IRS)

The IRS has released updated HAS forms. The new 5305-B and 5305-C with revision dates of December 2011 replace the November 2007 versions.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal, NCUA.