ALEXANDRIA, Va. – NCUA yesterday said federal charters are exempt from new laws and regulations enacted in Massachusetts to combat mortgage fraud.
“We do not need to undertake a preemption analysis because we conclude the Massachusetts law providing the authority for issuing the regulations makes the state regulations inapplicable to federal credit unions,” the agency said in a new legal opinion letter issued to RTN FCU, in Waltham, Mass.
The Bay State’s new law and regulations define and ban certain types of activities by mortgage brokers and lenders as unfair or deceptive acts or practices.
“NCUA regulations,” said the agency, “specifically address the accuracy of advertising and other representations, which is the primary focus of the state regulations, and prohibit any insured credit union from making “any advertisement...or...and representation which is inaccurate or deceptive.”
