Compliance Blog

NCUA recently released NCUA Letter to Credit Union 08-CU-19 to make credit unions aware of risk management issues surrounding mortgage brokers and mortgage correspondents.  You can access the guidance here.  This guidance not only builds on NCUA's recent guidance on third party relationships; it puts it in action. 

As you may recall, last year NCUA issued a major piece of guidance in the form of a letter to credit union regarding the management of third party relationships.  (Letter to Credit Unions 07-CU-13) 

The mortgage broker and mortgage correspondent guidance literally walks you through the third party relationship guidance in relation to mortgage brokers and correspondents.  It is a must read for credit unions that use mortgage brokers and correspondents, but it also serves as an example of how to apply the third party relationship guidance to a given relationship.

And it is the latest example of how important risk management is becoming in the day-to-day affairs of federal credit unions.