slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Compliance Outlook PowerPoint Presentation
Download Presentation
Compliance Outlook

Loading in 2 Seconds...

play fullscreen
1 / 28

Compliance Outlook - PowerPoint PPT Presentation


  • 145 Views
  • Uploaded on

Compliance Outlook. 2013 Fourth Quarter -. 2014 First Quarter. Program Overview. Fourth Quarter 2013 CFPB – International Remittance Transfers CFPB – Credit Access Rule NCUA Liquidity & Contingency Funding Plans NCUA Electronic Filing NCUA Charitable Donation Accounts

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Compliance Outlook' - danyl


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Compliance Outlook

2013 Fourth Quarter -

2014 First Quarter

slide2

Program Overview

  • Fourth Quarter 2013
    • CFPB – International Remittance Transfers
    • CFPB – Credit Access Rule
    • NCUA Liquidity & Contingency Funding Plans
    • NCUA Electronic Filing
    • NCUA Charitable Donation Accounts
    • FFIEC Social Media Guidance
slide3

Program Overview

First Quarter 2014

  • CFPB
    • Ability to Repay / Qualified Mortgages
    • Loan Originator Compensation
    • Valuations and Appraisal Requirements
    • HOEPA Rules
    • Mortgage Servicing
slide4

CFPB – International Remittance Transfers

10/28/2013

  • 100 IRT Exemption
  • Disclosures
  • Temporary Exceptions
slide5

CFPB – Credit Access Rule

  • The credit access rule allows:
    • Joint-account income as an asset on credit applications.

11/4/2013

slide6

NCUA – Liquidity & Contingency Funding

  • FICUs with assets less than $50 million must maintain a basic written policy for managing liquidity and a list of contingent liquidity sources.
  • FICUs with assets over $50 million must have a contingency funding plan that sets out strategies for liquidity shortfalls in emergency situations.
  • FICUs with assets of $250 million or more must have access to a backup federal liquidity source for emergency situations.

3/31/2014

slide8

NCUA – Charitable Donation Accounts

  • FCUs are now permitted to create and fund charitable donation accounts (CDAs), which may contain otherwise “impermissible” investments.
  • CDAs are a hybrid charitable and investment vehicle, satisfying certain conditions. (721.3)
  • Funding is limited to 5% of the FCU’s net worth at all times for the duration of the CDAs, measured quarterly during the Call Report cycle.

12/19/2013

slide9

FFIEC Social Media Guidance

Addresses the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media……

IMMEDIATE

slide10

CFPB – Dealer Mark-ups

  • Indirect Auto Lending
  • Credit unions that allow dealer mark-ups in their indirect lending program should be aware of details from a consent order to Ally Financial Inc. and Ally Bank.
slide11

CFPB – Ability to Repay (ATR)

Must establish a consumer’s ability to repay:

At a minimum creditors must consider 8 underwriting factors:

  • Current or reasonably expected income or assets;
  • Current employment status;
  • Monthly payment on the covered transaction;
  • Monthly payment on any simultaneous loan secured by same property;
  • Monthly payment for mortgage-related obligations;
  • Current debt obligations, alimony, and child support;
  • Monthly debt-to-income ratio or residual income; and
  • Credit history

Must use reasonably reliable third-party records to verify the information they use to evaluate the factors.

slide12

CFPB – Qualified Mortgage (QM)

Must establish a consumer’s ability to repay:

There are qualified mortgage standards that if met provide the presumption that the credit union has established the ability to repay – consider it a “Safe Harbor”.

slide13

CFPB – Loan Originator Compensation

  • MLO cannot receive compensation on any of the mortgage loans’ terms or conditions.
  • No Dual Compensation – if the MLO receives compensation from the borrower in connection with a mortgage loan, s/he cannot receive compensation from their organization or another person for the same transaction.
slide14

CFPB – Loan Originator Compensation

  • MLO’s must be registered according to the SAFE Act.
  • MLO’s AND CREDIT UNIONS must include their name and NMLS ID on the following loan documents:
      • Credit application
      • Note or loan contract
      • Security instrument

Generally include on documents that require a member’s signature.

slide15

CFPB – Valuation & Appraisal

TILA

  • Applies to first lien or subordinate lien closed end loans secured by a member’s principal dwelling.
  • Higher Priced Mortgage Loan (HPML):
    • First lien with an APR that exceeds the APOR by 1.5% or more
    • First lien jumbo loan with an APR that exceeds the APOR by 2.5% or more.
    • Subordinate lien with an APR that exceeds the APOR by 3.5% or more

http://www.ffiec.gov/ratespread/newcalc.aspx

slide16

CFPB – Valuation & Appraisal

TILA - Appraisal Requirements:

  • Disclose within three business days after receiving the members’ applications that they are entitled to a free copy of their appraisal and can hire their own appraiser at their own expense for their own use.
    • Disclosure Requirement (Appendix C – Form C-9)

“We may order an appraisal to determine the property’s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost.”

slide17

CFPB – Valuation & Appraisal

TILA - Appraisal Requirements:

  • Obtain a written appraisal performed by certified or licensed appraiser.
  • Appraisal must be written with an interior inspection.
  • Deliver copies of appraisals to applicants no later than three business days before consummation.
slide18

CFPB – Valuation & Appraisal

ECOA – Valuations Requirements

  • Covers closed-end or open-end secured by 1st lien on a dwelling.
  • Within three business days of receiving a member’s application, notify the applicant of the right to receive a copy of appraisals/valuations.
  • Promptlyshare copies of appraisals and other written valuations with the applicant.
    • Promptlymeans upon completion or at least three business days before consummation (for closed end) or account opening (for open end), whichever is earlier.
slide19

CFPB – Valuation & Appraisal

ECOA – Appraisal or written valuation to be provided:

  • An appraiser’s report with an estimate of the property’s value or opinion of value.
  • Internal document prepared that assigns a property value.
  • Report approved by a GSE describing the estimate developed by the GSE’s proprietary methodology or mechanism.
  • Automated valuation model report.
  • Broker’s opinion prepared by a real estate broker, agent or sales person to estimate the property’s value.
slide20

CFPB – High-Cost Mortgage & Counseling

High-Cost Mortgages

Rule applies to consumer credit transactions secured by a principal dwelling.

What transactions are covered?

  • Purchase-money mortgages
  • Refinances
  • Closed-end home equity loans
  • Open-end credit plans (i.e., HELOCs)
slide21

CFPB – High-Cost Mortgage & Counseling

High-Cost Mortgages - Special disclosures

  • Provided 3 days prior to consummation or account opening.
    • Loan will not be effective until consummation or account opening occurs.
    • Explain consequences of default.
    • Disclose loan terms such as APR, amount borrowed and monthly payment.
    • Variable rate – explain maximum monthly payment that may be required.

Regulation Z – Appendix H (Sample H-16)

slide22

CFPB – High-Cost Mortgage & Counseling

High-Cost Mortgages – Restriction on Terms

The rule bans certain loan features:

  • Balloon payments – except in 3 circumstances:
    • Payment schedule is adjusted to accommodate member’s seasonal or irregular income.
    • Short term bridge loan to finance new home purchase for member selling existing home.
    • Credit union serving predominately rural or underserved areas and meets the ATR/QM rule.
  • Prepayment Penalties
  • Due on Demand Features
slide23

CFPB – High-Cost Mortgage & Counseling

Homeownership Counseling

  • Prior to making a high-cost mortgage, the credit union must receive written certification that the member has received homeownership counseling on the advisability of the mortgage from a HUD approved counselor or state housing finance authority.
  • The counselor must confirm that the member received ALL of the high-cost mortgage / RESPA disclosures before they can issue the certificate.
slide24

CFPB – High-Cost Mortgage & Counseling

Homeownership Counseling

Credit unions must give applicants for federally related mortgages (whether or not it is high-cost) a written list of homeownership counseling organizations within 3 business days of receiving the application.

slide25

CFPB – Mortgage Servicing

Mortgage Servicing – RESPA

  • Error resolution and information requests
  • Force-placed insurance
  • General servicing policies, procedures and requirements
  • Early intervention with delinquent members
  • Continuity of contact with delinquent members
  • Loss mitigation
slide26

CFPB – Mortgage Servicing

Mortgage Servicing – TILA

  • Interest rate adjustment notices for ARMs
  • Prompt crediting of payments and responses to requests for payoff amounts
  • Periodic statements for mortgage loans
slide27

CFPB – Mortgage Servicing

Small Servicer Exemption

  • Periodic statements
  • Prohibition on forced-place insurance where a servicer could continue the member’s existing hazard insurance by advancing funds to escrow under certain conditions
  • General servicing policies and procedures requirements
  • Early intervention provisions
  • Continuity of contact provisions
  • Some Loss mitigation provisions
slide28

Thank you for joining us for this overview of the Credit Union Compliance Connection. Stay Tuned……..