Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks
The OCC, FRB, FDIC, OTS, and NCUA (the Agencies) are issuing this final guidance entitled, ``Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks'' (guidance). The Agencies developed this guidance, in conjunction with the State Liaison Committee of the Federal Financial Institutions Examination Council
The Low-Income Definition
NCUA is amending the definition of ``low-income members'' to clarify that, in determining if a credit union qualifies for a low- income designation, the comparison of credit union data, whether individual or family income data, must be with statistical data for the same category. The amendment will clarify the intention of the original regulatory text so it is consistent with the geo-coding software the agency uses to make the low-income credit union (LICU) designation.
Golden Parachute and Indemnification Payments
NCUA proposes to adopt a rule to prohibit, with some exceptions, a federally insured credit union (FICU) from making golden parachute and indemnification payments to an institution-affiliated party (IAP). The proposed rule is intended to help safeguard the National Credit Union Share Insurance Fund (NCUSIF) by preventing the wrongful or improper disposition of FICU assets and to inhibit unwarranted rewards to IAPs who may have contributed to an FICU's troubled condition. The proposed rule would also provide FICUs with greater clarity on the distinction between legitimate employee severance payments and improper golden parachute payments.
Truth in Savings
On July 22, 2009, NCUA published a final rule amending part 707, which implements the Truth in Savings Act, and the official staff