Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB will outline rules it is considering to help provide for a friendly approach to mortgage servicing. The mortgage servicing rules under consideration include Clear Monthly Mortgage Statements, Warnings Before Interest Rate Adjustments, Options for Avoiding “Force-Placed” Insurance, and Early Information and Options for Avoiding Foreclosure.

The CFPB has released its Consumer Response Annual Report. The report analyzes the CFPB’s activities in taking in, resolving and analyzing consumer complaints.

The CFPB blogged to consumers “What the proposed mortgage servicing rules could mean for you.” The proposed rules are aimed to protect consumers from surprises by providing specific regulatory requirements for mortgage servicers to follow.

National Credit Union Administration (NCUA)

The NCUA has released the April version of The NCUA Report. The report has articles highlighting the insurance fund, the crash network, the exam process, strategies for reaching younger members and other topics.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: April 10, 2012.

Financial Stability Oversight Council (FSOC)

The FSOC has approved a rule to designate nonbank financial companies for enhanced oversight to help prevent future financial crises. Under this rule, which was provided for by the Dodd-Frank Act, the FSOC can subject nonbank financial companies to a system of enhanced prudential standards requiring them to operate in a manner that poses less risk to the financial system.

Federal Reserve Board (FRB)

The FRB released a policy statement regarding the rental of residential properties acquired in foreclosure. The policy statement explains that FRB’s general policy is that banking organizations should make good faith efforts to dispose of foreclosed properties, but in light of the extraordinary market conditions banking organizations may rent residential other real estate owned (OREO) properties within the legal holding-period limits without demonstrating continuous active marketing of the property for sale, provided that suitable policies and procedures are followed.

The FRB also released a final rule amending Regulation D and Regulation J. The amendments to Regulation D will be implemented in two phases. The amendments related to the elimination of contractual clearing balances and as-of adjustments and those related to the provision of direct compensation will take effect on July 12, 2012. The amendments on the creation of a common two-week maintenance period and replacement of carryover and routine waivers with a penalty-free band around reserve balance requirements will take effect on January 24, 2013. The final rule amending Regulation J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire) to eliminate references to “as-of adjustments,” consistent with the final amendments to Regulation D, and to make clarifications about the handling of checks sent to the Federal Reserve Banks and the application of Regulation J’s funds transfer rules to remittance transfers, will take effect on July 12, 2012.

Office of the Comptroller of the Currency (OCC)

The OCC released guidance OCC 2012-10 on troubled debt restructurings (TDR). While the guidance was issued to national banks and federal savings associations, it includes accounting and reporting requirements for TDRs that credit unions may find helpful.

Oregon Department of Consumer & Business Services (DCBS)

The DCBS announced the appointment of Jean Straight as the agency’s deputy director. Straight has served in state government for 15 years, most recently at the Oregon Youth Authority, where she has been the assistant director in charge of business services since 2008. She also worked for the Secretary of State’s office as deputy and in a number of management roles.

Federal Court

A federal judge in Harrisburg, Pa., has dismissed a lawsuit against a credit union for violation of Regulation E ATM notice requirements. The credit union was able to provide evidence (pictures and logs) showing that it had properly displayed the correct signage and had regularly inspected the ATMs to ensure the signs were displayed.

PEW Charitable Trusts

The PEW Charitable Trusts released a report on Key Focus Group Findings on Prepaid Debit Cards. The report’s findings show why consumers may be turning to these cards, but also details some of the drawbacks of the cards.

Social Security Administration (SSA)

The SSA announced new conditions for compassionate allowances program. The SSA added 52 new compassionate allowances conditions primarily involving neurological disorders, cancers and other rare diseases.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Advocacy News, Compliance News, Federal, NWCUA.