NCUA Pursues Ambitious Regulatory Agenda

A special message from Mary Martha Fortney, President and CEO
March 2014

It’s hard to believe that a year has passed since NCUA’s last review of one-third of its existing regulations.

This year, the NCUA’s Office of General Counsel has identified a number of regulations, including rules 748 (“Security Program, Report of Suspected Crimes, Suspicious Transactions, Catastrophic Acts and Bank Secrecy Act Compliance”), 760 (“Loans in Areas Having Special Flood Hazards”), and 761 (“Registration of Residential Mortgage Loan Originators”), among others.

While the comment period for NCUA's 2014 Rule Review will not close until Aug. 4, we at NASCUS are already looking ahead and planning to submit a comment letter on the review, because just as these past couple of months have flown by, so too will the next five. NASCUS also plans to submit comments on NCUA’s proposed Voluntary Liquidation of a Federal Credit Union (comments due 60 days after publication in the Federal Register), and NCUA's proposed Risk-Based Capital Rule (comments due May 28, 2014).

As we always have, NASCUS has been working hard this year to support the state charter. Our Legislative and Regulatory Affairs Department has summarized three NCUA Letters to Credit Unions. One such letter issued by NCUA (LTCU 14-CU-03) notifies federally-insured credit unions that it intends to begin exercising its civil money penalty authority to find credit unions that submit late or inaccurate Call Report and Profile data. The second, LTCU 14-CU-02, provides credit unions with NCUA’s supervisory focus for 2014. Finally, LTCU 14-CU-01 offers credit unions guidance the agency prepared for its field staff on how credit union mortgage lenders will be expected to comply with the Consumer Financial Protection Bureau (CFPB)’s recently finalized rule on Ability-to-Repay (ATR) and Qualified Mortgages (QMs).

In addition to the three summaries of the NCUA Letters to Credit Unions, the NASCUS Legislative and Regulatory Affairs Department has also written summaries for seven Regulatory Alerts issued this year by NCUA, the most recent of which being 14-RA-07, which identifies the new requirements for issuing higher-priced mortgage loans (HPML) under the new HPML Appraisal Rule, 14-RA-06, which addresses the Regulation C Home Mortgage Disclosure Act (HMDA) data collection threshold for 2014, and 14-RA-05, which deals with the Consumer Financial Protection Bureau (CFPB) rule regarding compensation for mortgage loan originators.

NASCUS is awaiting the release of the NCUA’s final Capital Planning and Stress Testing rule, due out as early as this month, and Contacts with Federal Credit Unions final rule, which could be published within the next couple of months.

Important compliance dates are approaching as well, for NCUA’s final Derivatives rule for federal credit unions (effective March 3), Emergency Liquidity rule (effective March 31), and elements of the new final CUSO rule (effective June 30, with reporting requirements becoming effective Dec. 31).

Although I am retiring at the end of this year, we have much to accomplish between now and then, and I will not rest until close of business on Dec. 31. I will continue to work hard for you, just as the NASCUS staff will, to ensure that we continue to advance and defend state authority. Please let me know if you have any questions or comments.

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