Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB report finds confusion in the reverse mortgage market. The CPFB study found that what is happening in reverse mortgage practice is different than what is intended. Often there is a lack of understanding of the product, borrowers are trending younger, lump sum payments are being taken, and deceptive marketing is being used.

The CFPB adopted the final rule regarding the protection of privileged information submitted to the Bureau by the financial institutions it regulates. The new rule provides supervised entities further assurances that providing privileged information to the bureau will not adversely affect the confidentiality of such information.

The CFPB published the Final Policy Statement on the publication of credit card complaint data into the Federal Register, summarizing the bureau’s plans to disclose data associated with credit card complaints.

The CFPB will begin taking comments on reverse mortgages. The agency is looking for comments on which factors influence reverse mortgage decision-making; how reverse mortgage loan proceeds are being used; how the decision to enter a reverse mortgage transaction can impact consumers’ long-term finances; and market dynamics and business practices among the broker, correspondent and retail channels. Comments are due by Aug. 31, 2012.

National Credit Union Administration (NCUA)

The NCUA issued Letter to Credit Unions 12-CU-07. The letter reviews the recently released interagency guidance on mortgage servicing practices concerning military homeowners with permanent change of state orders and the NCUA expectations of credit unions when it comes to servicing military servicemembers.

The NCUA issued Letter to Credit Unions 12-CU-08. The letter reviews the recent improving financial trends of federally insured credit unions.

The NCUA narrowed the estimated range of future stabilization fund assessments. The updated information shows future losses as now between $2.7 billion and $6 billion. While this trims the range for future assessments, the NCUA still projects the 2012 assessment to be between eight and 11 basis points.

The NCUA posted the agency’s 2011 Annual Report. In 2011, aggregate credit union indicators generally trended in the right direction. Membership grew by 1.3 million, income jumped 41.2 percent, delinquencies and charge-offs fell, and ROA climbed 18 basis points.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: June 29, 2012.

Financial Accounting Standards Board (FASB)

The FASB published a proposal for disclosing liquidity and interest rate risk. The update is intended to improve financial reporting about certain risks inherent in financial instruments and how they contribute to the reporting organization’s broader risks. Comments are due by Sept. 25, 2012.

The FASB issued a proposed accounting standards update that will amend the Presentation of Financial Statements (Topic 205) for The Liquidation Basis of Accounting. The proposed amendments would require entities to prepare their financial statements using the liquidation basis of accounting when liquidation is imminent. Comments are due by Oct. 1, 2012.

U.S. Supreme Court

The Supreme Court of the United States upheld the Patient Protection and Affordable Care Act.

North American Securities Administrators Association (NASAA)

The NASAA issued an advisory to spotlight concerns for small businesses and entrepreneurs seeking to raise investment capital through crowdfunding. The advisory reminds small businesses to wait until the SEC’s crowdfunding rules are finalized before offering shares in their ventures for sale to the public.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, GoWest Solutions, NCUA, NWCUA.