Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB issued proposed rules regarding the combined Truth in Lending/RESPA disclosure. The proposed rules are the work of the “Know Before You Owe” program and will require all lenders to provide new easier-to-use mortgage forms. Comments on the changes to 12 CFR 1026.1(c) and 1026.4 are due by Sept. 7, 2012. The rest of the comments are due by Nov. 6, 2012.

The CFPB issued proposed rule amending the HOEPA section of Regulation Z. The proposed rule will expand the types of mortgage loans covered by HOEPA and impose additional restrictions on HOEPA mortgage loans. Comments are due by Sept. 7, 2012.

The CFPB issued minor technical corrections to the remittance transfer rule. The technical corrections correct a confirming change error and formatting on certain model forms. The corrections will be effective on Feb. 7, 2013.

National Credit Union Administration (NCUA)

The NCUA announced that Western Bridge Corporate will be closing on Friday, July 13, 2012. The closing of Western Bridge Corporate marks the complete transition of the former corporate’s members and services to Catalyst Corporate Federal Credit Union.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: July 5, 2012.

U.S. Securities and Exchange Commission (SEC)

The SEC approved final rules and interpretations to further define “swap” and “security-based swap.” The approved jointly written rules and interpretations mark a foundation step in the establishment of a new regulatory regime for derivatives. The final rule will apply to credit unions under $10 billion in assets.

Federal Financial Institutions Examination Council (FFIEC)

The FFIEC released a statement on outsourced cloud computing. In the statement, the FFIEC considers cloud computing to be another form of outsourcing with the same basic risk characteristics and risk management requirements of traditional forms of outsourcing.

National Flood Insurance Program (NFIP)

The NFLP has received a long-term extension until Sept. 30, 2017.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Around the NW, Compliance News.