Federal Housing Administration Provides 40-Year Mortgage Modification Option

The Federal Housing Administration (FHA) announced that it is adding a new, 40-year modification option for mortgage servicers to use in conjunction with its partial claim option to assist additional borrowers who are behind on their mortgage payments for FHA Title II forward mortgages. This new loss mitigation home retention option is designed to help those borrowers who cannot achieve a minimum targeted 25% reduction in the principal and interest portion of their mortgage payment through FHA’s existing 30-year mortgage modification with a partial claim.

Question of the Week

Q. Which logo do I use: equal housing opportunity or equal housing lender?

A. Federal credit unions, with the respect to written and visual advertisements, may satisfy the notice requirement by including in the advertisement a copy of the logotype with the legend “Equal Housing Lender” or a copy of the logotype with the legend “Equal Housing Opportunity”.

State credit unions are regulated on this issue by the Department of Housing and Urban Development and must use “Equal Housing Opportunity”.

Both federal and state-chartered credit unions are prohibited from engaging in any advertising of real estate-related loans that violate the Fair Housing Act or the Equal Credit Opportunity Act.

Related Links

24 CFR 200.620

12 CFR 701.31(i)

24 CFR 110.25(a)

Compliance Alerts

National Credit Union Administration

NCUA Board Briefed on Cybersecurity Threats and Diversity, Equity, and Inclusion Program

The NCUA Board was briefed on two matters during its fourth open session. Current cybersecurity events and trends affecting federally insured credit unions and the broader financial system and the NCUA’s diversity, equity, inclusion, and belonging program.

Consumer Financial Protection Bureau

CFPB Releases Report on Financial Challenges Facing Rural Communities

The CFPB issued a report on the challenges faced by Americans in rural communities. The report highlights that many of these communities lack access to physical bank branches, are more likely to seek credit from nonbanks and are heavily affected by medical bills.

CFPB Report Spotlights Medical Billing Challenges

The CFPB issued a report that examines the financial consequences of medical billing and collections on individuals and families across the country.

CFPB Invokes Dormant Authority to Examine Nonbank Companies Posing Risks to Consumers

The CFPB announced that it will invoke a legal provision to examine nonbank financial companies. The authority granted by Congress under the Dodd-Frank Act will allow the CFPB to supervise nonbank entities in the mortgage, private student loan, and payday loan industries, regardless of the size. The authority also extends to nonbanks whose activities the CFPB has reasonable cause to determine pose a risk to consumers. Nonbanks, such as the growing fintechs, may be subject to this supervision.

Financial Crimes Enforcement Network

FinCEN Issues Advisory on Kleptocracy and Foreign Public Corruption

FinCEN issued an advisory on kleptocracy and foreign public corruption, urging financial institutions to focus their efforts on detecting the proceeds of foreign public corruption — a priority for the U.S. Government as it continues to implement the U.S. Strategy on Countering Corruption. The advisory provides typologies and potential indicators of kleptocracy and other forms of foreign public corruption, namely bribery, embezzlement, extortion, and the misappropriation of public assets.

Office of Foreign Assets Control

OFAC has updated the SDN list as of April 22. The last update prior to this was April 14.

 

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

Posted in Compliance News, Compliance News, Compliance Question.