Odds and Ends
Posted by Anthony Demangone
Here's a mixed bag of items that were lurking in my email inbox.
- HUD recently issued a final rule that will increase net worth requirements for FHA lenders and will eliminate FHA approval requirements for loan correspondents. The discussion regarding the net worth changes begins on page 7. Â
- The National Flood Insurance Program has been reauthorized...until the end of May. Â
- Treasury (and others) has issued this proposal regarding what financial institutions must do when they receive a garnishment on an account that receives federal benefits. Here's a little overview:
The proposed rule would establish procedures that financial institutions must follow when a garnishment order is received for an account into which Federal benefit payments have been directly deposited. The proposed rule would require financial institutions that receive a garnishment order for an account to determine whether any Federal benefit payments were deposited to the account within 60 calendar days prior to receipt of the order and, if so, would require the financial institution to ensure that the account holder has access to an amount equal to the sum of such payments in the account or to the current balance of the account, whichever is lower.Â
- The Fed has published this online publication for consumers so that they can understand the new protections for gift cards that will take effect August 22, 2010. Â These publications will find their way into newspapers. Â As a former journalist who dealt with deadlines, I know how tempting it can be to take such a brochure and turn it into a "financial column." Â So, your members will get this information. Â And that can lead to questions.Â
- The OCC issued this bulletin on the upcoming Regulation E overdraft opt-in requirements. I know, the OCC is not NCUA, but Reg E affects banks and credit unions equally. Â So this may be of use.
- More than 150 credit unions are signed up for NAFCU's Reg Z webcast, which will take place this Wednesday.