(Feb. 19, 2021) Four new summaries have been posted by NASCUS, looking at recent actions from NCUA, which include: two regulatory alerts, a final rule on supervisory guidance, and (along with other federal regulators) answers to questions about anti-money laundering activities.
All four of the summaries are available to members only.
The summaries on regulatory alerts from NCUA look at two issued earlier this month: the first on 2021 threshold adjustments under Regs C, Z and V; the second on submission of 2020 Home Mortgage Disclosure Act (HMDA) data. The first alert (21-RA-02) notes that, in January, the bureau published annual adjustments for exemption thresholds under the Home Mortgage Disclosure Act (HMDA, Regulation C) and the Truth in Lending Act (TILA, Regulation Z). The asset-size thresholds, the alert points out, exempt some credit unions from data collection under Regulation C and from escrow account requirements for higher-priced mortgage loans and specific qualified mortgages under Regulation Z.
The alert also notes that the CFPB published an annual adjustment to the maximum amount consumer reporting agencies may charge consumers for making a file disclosure to a consumer under Regulation V.
The second alert (21-RA-03) reminds credit unions with $47 million or more in assets that they have until March 1 to file reports on home mortgage loan applications made last year under HMDA (as implemented by the CFPB’s Reg C). There are some limiting provisions for reporting under the rule, the agency pointed out in the alert. For example, the closed-end mortgage loan threshold increased from 25 to 100 effective July 1, 2020. “Credit unions that originated fewer than 100 covered closed-end mortgage loans in 2018 or 2019 are not required to report any closed-end mortgage loan information for 2020,” the agency wrote, noting that Section 1003.3(c) of Regulation C lists excluded (not covered) transactions.
The third summary from NASCUS looks at the agency’s final rule on supervisory guidance. Issued early this month. Under the rule, aimed at clarifying and codifying the role of supervisory guidance, the meaning of “supervisory guidance” is clarified as meaning, essentially, it doesn’t have the force of law. As finalized, it codifies an interagency statement issued by NCUA and other federal financial institution regulators in September 2018.
The final summary from NASCUS this week outlines “frequently asked questions” (FAQs) about suspicious activity reporting and other anti-money laundering considerations released by NCUA, Treasury’s Financial Crimes Enforcement Network (FinCEN) and federal banking agencies. According to the agencies, the FAQs clarify the regulatory requirements related to suspicious activity reporting to assist credit unions and other financial institutions with their compliance obligations. The FAQs also enable financial institutions to focus resources on activities that produce the greatest value to law enforcement agencies and other government users of Bank Secrecy Act (BSA) reporting, the agencies said.
NASCUS Summary: Final Rule Summary: Role of Supervisory Guidance (Part 791, Subpart D) (member only)
(Feb. 12, 2021) Credit unions required to file reports on home mortgage loan applications made last year have until March 1 to do so, NCUA reminded this week in a Regulatory Alert.
In the alert (21-RA-03), the agency said all federally insured credit unions with assets of more than $47 million in assets as of Dec. 31, 2019, must file the application reports as required under the Home Mortgage Disclosure Act (HMDA), and implemented by the Consumer Financial Protection Bureau’s (CFPB’s) Regulation C.
There are some limiting provisions for reporting under the rule, the agency pointed out. For example, the closed-end mortgage loan threshold increased from 25 to 100 effective July 1, 2020. “Credit unions that originated fewer than 100 covered closed-end mortgage loans in 2018 or 2019 are not required to report any closed-end mortgage loan information for 2020,” the agency wrote, noting that Section 1003.3(c) of Regulation C lists excluded (not covered) transactions.
All data submitted, the agency said, must be done through the Federal Financial Institution Examination Council’s (FFIEC) HMDA Platform and that no other submission methods are permitted. An authorized representative of the credit union with knowledge of the data submitted must certify to the accuracy and completeness of the data submitted, the agency noted.
LINK:
Submission of 2020 Home Mortgage Disclosure Act Data (NCUA Regulatory Alert, 21-RA-03)
(Feb. 5, 2021) CFPB will end the agency’s “pause” on quarterly Home Mortgage Disclosure Act (HMDA) reporting for large issuers, CARD Act data collection and more, according to a public blog post by the agency’s acting director.
Dave Uejio, named the bureau acting director by President Joe Biden Jan. 20, also noted his desire to retain maximum flexibility for Biden’s nominee as bureau director – Rohit Chopra — and his plan to review past regulatory actions to determine how those actions best fit with the bureau’s consumer protection mission and purpose.
Last March, in response to the economic and financial impact of the coronavirus crisis, the bureau announced that as of March 26, 2020 “and until further notice, the CFPB does not intend to cite in an examination or initiate an enforcement action against any institution for failure to report its HMDA data quarterly.” Uejio’s blog post is, essentially, the “further notice” that the pause has ended.
Also in the blog post, Uejio said he has directed the agency’s division of Research, Markets, and Regulations (RMR) to take immediate steps to analyze housing insecurity (including mortgage foreclosures) and consumer finance barriers to racial equity, and to include a racial equity impact in policy proposals.
He also directed RMR to focus rulemaking on the pandemic response. To that end, he told the division to focus the mortgage servicing rulemaking on pandemic response to avert, to the extent possible, a foreclosure crisis when the COVID-19 forbearances end in March and April; and explore options for preserving the status quo with respect to qualified mortgage (QM) and debt collection rules.
A reference tool for HMDA data required to be collected and recorded in 2021 and reported in 2022 was published by CFPB late last week and is intended to help the mortgage lending industry understand, implement and comply with HMDA and Regulation C, the bureau said.
Displayed as a chart featuring key aspects of compliance with law, including filing instructions, the tool is intended to be used as a reference for data points required to be collected, recorded, and reported under Regulation C, the bureau said. It breaks down and describes, one by one, the data points required to be collected and reported by credit unions and other mortgage lenders in 2021 HMDA compliance, and provides filing instructions for each.
To that end, the chart includes all the data points required under Regulation C amendments issued Oct. 15, 2015, Aug. 24, 2017, Oct. 10, 2019, and April 16, 2020. It includes relevant regulation and commentary sections, incorporates information found in Section 4.2.2 of the 2021 Filing Instructions Guide (FIG), and provides when to report information as “not applicable” or “exempt.”
Filing instructions guide for HMDA data collected in 2021 (October 2020)