Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA seeks comment on federal guidance on reverse mortgages
WASHINGTON (1/6/10)—The Credit Union National Association (CUNA) has issued a regulatory comment call on the Federal Financial Institutions Examination Council’s (FFIEC) proposed guidance for reverse mortgages. The guidance will seek to help financial institutions ensure that their risk management and consumer protection practices adequately address the compliance and reputational risk associated with reverse mortgages. A reverse mortgage is a loan against a residence to provide cash to assist with living expenses, typically in the form of a lump sum or fixed monthly disbursement to the borrower. The National Credit Union Administration is one of several financial institution regulators that comprise the FFIEC, and the agency will be applying the guidance to federally insured credit unions. Specifically, the guidance recommends that credit unions and other financial institutions "provide adequate information" and "qualified independent counseling" for consumers that opt to take part in reverse mortgage products. Financial institutions should also "inform borrowers about reverse mortgage alternatives that they already offer," according to the guidance. The guidance also addresses related policies, procedures, and internal controls and third party risk management, and the FFIEC will issue both supervisory guidance to financial institutions and sample disclosures once the guidance is finalized. CUNA has suggested that those who do submit comments provide input on tailoring the FFIEC guidance to credit unions. More generally, CUNA has also asked for suggested additions or deletions to the guidance. Comments are due to CUNA by Feb. 9. Comments solicited to the FFIEC should be submitted by Feb. 16. To view the CUNA comment call, use the link.


RSS print
News Now LiveWire
The Hill reports House Republicans plan to delay Aug. recess to stay in D.C. until they have enough votes to pass bill on border crisis.
8 hours ago
The FHLBs of Des Moines and Seattle announce they have entered into an exclusivity arrangement regarding potential merger of the 2 entities.
9 hours ago
SunCorp and @AlloyaCorp have announced their intent to merge.
11 hours ago
.@TheNCUA bars former employee of Southwest Communities FCU,Melissa Rosing,from work at any federally insured FI. http://t.co/owtVnPxVZT
11 hours ago
Fryzel added @TheNCUA is fed. governmt, thereby will B criticized, but always tried 2 do what is right. McWatters still 2 B sworn in.2of2
14 hours ago