NCUA Issues Regulatory Alert Regarding HOEPA Rule

The National Credit Union Administration has issued a regulatory alert to all federally insured credit unions focusing on the new Homeownership Counseling and Consumer Protection Requirements under HOEPA requirements that go into effect on Friday, Jan. 10.

The alert details information that credit unions need to know to implement the rules, and also provides helpful regulatory tips designed to make it easier to understand how and when the rules apply. According to the NCUA alert:

  1. If your credit union makes any federally related mortgage loan (whether or not it is a high-cost mortgage), including open-end and closed-end credit, you must provide a written list of homeownership counseling organizations to applicants within three days of the application;
  2. If your credit union makes mortgage loans to first-time borrowers that permit negative amortization (whether or not it is a high-cost mortgage), you must confirm that these first-time borrowers have received homeownership counseling before consummation; and
  3. If your credit union makes high-cost mortgages or open-end credit secured by a consumer’s principal dwelling, you must comply with new HOEPA consumer protections and homeownership counseling requirements.

The alert also addresses:

  • Homeownership Counseling Provisions Unrelated to HOEPA Loans
    • Which loans are covered and what counseling information is required?
  • High-Cost Mortgage Provisions
    • Which loans are covered?
    • What are the consumer protection requirements for HOEPA loans?
    • What other resources are available?

The regulatory alert contains some clear, easy-to-understand guidance and a great HOEPA Loans Summary that could be helpful to credit unions that are still working to ensure they are in compliance with the rules, as well as credit unions that want to feel more confident about the state of their compliance program. The full alert is available on the NCUA’s website here.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.