Compliance Corner: HUD Updates Foreclosure Brochure

All Federal Housing Administration-approved mortgagees are now required to use a new foreclosure brochure from the Department of Housing and Urban Development, and HUD has released a letter announcing the update and reviewing its proper use.

The new brochure, called “Save Your House: Tips to Avoid Foreclosure,” replaces the previously published “How to Avoid Foreclosure.”

Since Feb. 10, HUD has required FHA-approved mortgage lenders to send a cover letter with the brochure to delinquent borrowers with FHA-approved mortgages no earlier than the 32nd day of delinquency, but no later than the 60th day. HUD’s Mortgagee Letter 2014-1 says that cover letter must include:

  • Highly visible information about the availability of language-access services offered by the servicer for mortgagors with limited English proficiency. (This information must be provided, at a minimum, in Spanish and must include an advisement to seek translation or other language assistance.);
  • The following information related to the mortgage loan: number of late payments;  total amount of any late charges incurred; month of each late payment (e.g., June, July); and original due date of each late payment;
  • The servicer’s mailing address and specific contact information of any assigned personnel;
  • A request for the mortgagor’s current financial information;
  • Toll-free telephone numbers that mortgagors can use to contact the servicer’s loss mitigation/ customer assistance personnel; and,
  • The toll-free telephone number for mortgagors seeking information on HUD-approved housing counseling agencies: 800.569.4287; and the toll-free Federal Information Relay Service number available for mortgagors who may need a Telecommunication Device for the Deaf (TDD) to call the housing counseling line: 800.877.8339.

You can access the complete HUD letter here: Mortgagee Letter 2014-1.

Compliance Question of the Week

Q: If we open a new membership account conditioned on additional information, and we are ultimately unable to verify the identity of the member, are we required to go through the formal expulsion process?   

A: No. The credit union is not required to go through a formal expulsion process if the account is conditionally opened due to identify verification.

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released its agenda for the February board meeting.

The NCUA released a new video that discusses small credit unions’ impact on their communities.


Federal Reserve Board (FRB)

Chair Yellen delivered the FRB’s Semiannual Monetary Report to Congress.

The FRB is seeking comment on its proposal to repeal Regulation DD and Regulation P, and amendments to the Identity Theft Red Flags rule. 

The February issue of FedFlash is now available.


Federal Trade Commission (FTC)

The FTC has released two warnings to consumers regarding new scams. One scam involves tricking people into downloading malware by making them think they are receiving a funeral notice, while the other scam involves online dating.


Financial Crimes Enforcement Network (FinCEN)

FinCEN released guidance to financial institutions regarding accounts for legal marijuana businesses. The guidance includes due diligence expectations and reporting requirements.


Washington State Department of Financial Institutions (DFI)

In response to the new FinCEN guidance, WA DFI has released a statement aimed at helping state chartered financial institutions understand how this new guidance impacts them.


Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Feb. 14. The last update prior to this was Feb. 11.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.