Plain Language Guidance Is On Its Way, Says CFPB
WASHINGTON-The CFPB last week said it will publish plain-language guidance, work with other federal regulators and increase consumer outreach efforts as new mortgage regulations are implemented over the coming year. The announcement comes as the CFPB has released a boatload of new mortgage rules that are set to kick in January 2014. To make it easier to implement the new rules, CFPB said it will work with other federal regulators that also conduct mortgage exams to create a shared understanding of the new rules, publish easy-to-understand summaries of the new rules (including a video release) and will publish "official interpretations" of the new rules, among other things.
Judge Dismisses Price-Fixing Suit Filed Against Visa
WASHINGTON-A federal judge last week dismissed a price-fixing suit against Visa and MasterCard brought by the National ATM Council, a group of independent ATM operators. U.S. District Judge Amy Berman Jackson said the plaintiffs failed to present enough facts to show they were injured, or that there was an actual agreement or conspiracy to charge excessive fees. "Plaintiffs have not set forth sufficient facts to support their claim that there was a horizontal conspiracy," Jackson wrote in her opinion.
Force Placed Insurance Plan Is Rejected By FHFA
WASHINGTON-A proposal by Fannie Mae to lower the cost of force placed homeowners' insurance policies has been rejected by the Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac. Force placed insurance is designed to protect lenders and mortgage investors when homeowners stop paying policy premiums. It typically is selected by lenders and billed to borrowers.
Fannie had been working on a plan to cut the cost of force placed insurance, but the plan needed to be approved by the regulator. The regulator's move will block a plan that was expected to save Fannie and homeowners as much as $300 million per year, according to people familiar with it. The regulator now will work on an approach that would apply to both Fannie and Freddie, an FHFA official said.
Financial Lit Day Scheduled
MADISON, Wis.-The National Credit Union Foundation is urging CU organizations to hold a "Financially Fit Day" on April 3, 2013 to kick off National Financial Literacy Month. This fundraising day is part of a relatively new campaign, entitled "Credit Unions Support Financial Education: Leading the Way to Financial Freedom." A toolkit and more information can be found at http://financialeducation.coop/campaign-materials-downloads/.
Webinar Set On Net Worth Plans
ALEXANDRIA, Va.-NCUA's Office of Small Credit Union Initiatives (OSCUI) will host a free webinar-"Net Worth Restoration Plans: A Path to Recovery"-on Feb. 20 at 2 p.m. EST. Staff from OSCUI will review NCUA's capital requirements for CUs and the net worth restoration plan process. Also on the agenda are discussion of the most common causes of net worth declines, and assistance that's available to develop a net worth restoration plan. Questions may be submitted in advance at WebinarQuestions@ncua.gov. For more info: www.ncua.gov.
NCUA Names New Ombudsman
ALEXANDRIA, Va.-NCUA has named Joy Lee as its new Ombudsman. Lee was previously senior Federal Financial Institutions Examination Council Advisor to the chairman, and succeeds Moisette I. Sweat, who has been NCUA's Ombudsman since 2010. The ombudsman's job is to be the voice of the public to the NCUA leadership. Lee had previously been with NCUA, originally joining the agency as an examiner in 1987.
CEO Stole To Save Farm
TOPEKA, Kan.-The longtime CEO of a tiny rural CU who said she stole from the credit union to save the family farm has been sentenced to three years in prison. Federal prosecutors said Pamela Emig, 48, used a check kiting scheme to steal $815,000 from the tiny credit union, which had only $1.5 million in assets at year-end 2012. Emig told authorities the thefts began when she and her husband filed for bankruptcy and had no money to feed their cattle.
