Compliance Blog

Written by Bernadette Clair, Regulatory Compliance Counsel

 So far this week, we’ve blogged about NCUA’s proposed change to the definition of a “small entity” and the ANPR on the payday-alternative loan rule.  Today, we’ll highlight two additional proposals from NCUA’s September Board meeting.

Investing in TIPS.  NCUA approved a proposal to amend its investment regulation to allow federal credit unions (FCUs) to purchase Treasury Inflation Protected Securities (TIPS).  The proposed amendment adds TIPS to the list of permissible investments for FCUs in part 703.  NCUA believes that TIPS can be a valuable risk management tool for FCUs and they can benefit from including them in their overall investment portfolio.

Definition of “Rural District.”  NCUA also issued a proposed rule to change the definition of a “rural district” in the agency’s Chartering and Field of Membership Manual.  Currently, the definition includes a population ceiling of 200,000. The proposed change would allow a rural district if the population does not exceed the greater of 200,000 or three percent of the population of the state in which it is located. If the district crosses state lines, the three-percent component would be based on the population of the state containing the majority of the district.

 Comments for both proposals are due by November 26, 2012.  NAFCU’s Regulatory Affairs team is preparing Regulatory Alerts for NAFCU Members.

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NAFCU Webcast.  On November 7th, NAFCU’s Compliance team will discuss three recent mortgage proposals – mortgage loan originator compensation, “higher-risk mortgage loan” appraisals, and proposed changes to Regulation B that would require free appraisal copies to members.  Dodd-Frank requires the CFPB to finalize these rules by January 21, 2013, so it’s important to gain an understanding of the proposals and how they will impact your current mortgage lending practices.  Register by October 31 and save $100.

For a sneak peak, see these NAFCU Compliance blog posts:  Mortgage Loan Origination – Part 1; Mortgage Loan Origination – Part 2; Higher-Risk Appraisal Proposal; Regulation B Appraisal Proposal.

 Have a great weekend!