Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it will start supervising larger consumer credit reporting agencies. The Initial Rule establishes the CFPB’s authority to supervise a large part of the consumer reporting market. The rule will take effect on Sept. 30, 2012.

The CFPB has posted a semi-annual update to its rulemaking agenda. The agenda shows what rules are in pre-rule, proposed rule, final rule, and long-term agenda stages.

The CFPB posted a blog entry entitled, “How to Stop Mystery Credit Card Fees.” The information provided is geared to inform consumers about optional services like credit protection and identity monitoring, which may add additional fees to a credit card account. These types of add-on fees and sales practices were at the heart of a recent Civil Money Penalty against Capital One. In addition, the CFPB posted a guidance document on Marketing of Credit Card Add-on Products.

National Credit Union Administration (NCUA)

The NCUA has released the July edition of The NCUA Report. Among the topics covered are how assumptions affect interest rate risk (IRR) calculations, mortgage servicing practices and military homeowners, and reputation repair.

The NCUA has posted the agenda for the July 24 open board meeting. The board will be reviewing the Corporate Stabilization Fund assessment for 2012, an interagency proposal on Truth in Lending, interest rate ceiling determination, access to emergency liquidity, and insurance fund reports.

Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: July 18, 2012.

U.S. Department of Housing and Urban Development (HUD)

The HUD announced that it would start taking applications from qualified entities interested in purchasing pools of severely distressed mortgage loans that were formerly insured by the Federal Housing Administration (FHA). Under the program, loans are sold competitively at a market-determined price generally below the outstanding principal balance. FHA then processes an insurance claim, removes the FHA insurance and transfers the loan to the investor. Once the note is purchased, foreclosure is delayed for a minimum of six additional months, giving the new servicer time to work through alternatives with the borrower, possibly finding an affordable solution to allow the borrower to remain in their home. Because the loans are generally sold for less than what the borrower currently owes, the purchaser has the ability to reduce or modify the loan terms while still making a return on the initial investment. If no viable alternatives exist, the purchaser may be able to help the borrower sell the property through a short sale and avoid the costs of foreclosure.

Financial Crimes Enforcement Network (FinCEN)

FinCEN has posted a notice regarding the financial institutions FinCEN e-filing transaction period of July 1-8, 2012. While a combination of initial increased volume and a power outage resulted in delays, failed login sessions, and mistaken rejections, the BSA E-filing System is now functioning properly and has completed processing backlog data.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Advocacy News, Compliance News, NCUA.