Voglio sapere a riguardo di…

jspears on DSK121TN23PROD with RULES1

Federal Register / Vol. 86, No. 244 / Thursday, December 23, 2021 / Rules and Regulations if an FCU expands its loan servicing operations, changes to comply with the consumer protections that apply to the transfer and servicing of mortgage loans will not be significant.
One commenter discussed the use of proper controls related to the purchase of MSRs and tools that FCUs can leverage to mitigate associated risks.
This commenter stated that one control is for FCUs to invest in robust mortgage servicing software that is integrated with other in-house software, including the core system and loan origination system, to efficiently service mortgage loans. The commenter stated that the adoption of a comprehensive set of technologies is necessary for servicers to work efficiently and comply with regulations. The commenter also stated that, as FCUs consider upgrades to their CMS, specifically their mortgage lending quality control programs, any final rule should permit flexibility in examination findings because FCUs may need to amend existing CMS contracts and enhance staff training. Similarly, another commenter noted that FCUs will need to consider CMS upgrades, specifically to their mortgage lending quality control programs, and should consider the need to closely review custom loan documents, including promissory notes. FCUs may need to consider creating or hiring specialized due diligence teams to review loans to ensure they meet the NCUAs regulations and the FCUs own internal policies.
Another commenter stated that mortgage servicing operations should be certified or confirmed through thirdparty reviews and/or audits. Further, this commenter asserted that FCUs would need increased due diligence over third-party vendors that service mortgages and to secure insurance coverage sufficient to support possible losses. This commenter agreed that FCUs that decide to purchase MSRs should have appropriate expertise on staff to avoid problems. The commenter suggests NCUA may wish to take steps to develop a risk-rating matrix to measure performance and credit quality of loans in a selected pool.
The Board recognizes that FCUs have experience originating and servicing mortgage loans and managing their exposure to compliance risk through their CMS. An FCU that currently services mortgage loans that it originates is expected to have an effective CMS
that addresses compliance with mortgage servicing laws and regulations, and includes the following components:
Board and senior management oversight, Policies and procedures,
VerDate Sep<11>2014

19:16 Dec 22, 2021

Jkt 256001

Training, Monitoring, Member complaint response, and An audit function.
An effective CMS also promotes compliance with consumer protectionrelated laws and regulations and prevents consumer harm. Due to the existing and extensive consumer protection laws that are specific to mortgage loan servicing,44 including those under Regulation X and Regulation Z, which are promulgated by the Consumer Financial Protection Bureau, the Board believes that it is not necessary to include additional consumer protections in the final Investment Rule.45 However, the NCUA
will use the examination process to assess the effectiveness of an FCUs CMS for compliance with consumer protection-related laws and regulations that apply to mortgage servicers, as appropriate.46 Further, as appropriate, the NCUA will employ supervisory tools or take enforcement action to address any CMS deficiencies related to mortgage servicing that cause consumer harm. Moreover, the Board notes that any FCUs that currently operate under the small servicer exceptions to these rules will no longer benefit from the exemption from certain requirements if they begin to purchase MSAs from nonaffiliate owners of the underlying mortgage loans.47
C. CAMELS Requirement In the NPR, the Board requested comment as to whether the final rule should require FCUs to be well capitalized as defined in part 702, and whether, like the eligible obligations 44 Servicers must comply with various laws to the extent that the law applies to the particular servicer and its activities, including but not limited to RESPA, 12 U.S.C. 2601, et seq. Regulation X, TILA, 15 U.S.C. 1601, et seq. Regulation Z, the SCRA, 50 U.S.C; 3901, et seq., the Dodd-Frank Act UDAAP provisions, 12 U.S.C. 5536a1B, as well as other applicable Federal and State laws.
45 For example, see 12 CFR 1024.17; 12 CFR part 1024, subpart C; 12 CFR 1026.20, .36, .40-.41.
46 For example, see https www.ncua.gov/
regulation-supervision/manuals-guides/federalconsumer-financial-protection-guide/compliancemanagement/compliance-management-systemsand-compliance-risk; https www.ncua.gov/
regulation-supervision/manuals-guides/federalconsumer-financial-protection-guide/compliancemanagement/lending-regulations/real-estatesettlement-procedures-act-regulation-x; https
www.ncua.gov/regulation-supervision/manualsguides/federal-consumer-financial-protectionguide/compliance-management/lendingregulations/truth-lending-act-regulation-z; https
www.ncua.gov/regulation-supervision/manualsguides/federal-consumer-financial-protectionguide/compliance-management/lendingregulations/servicemembers-civil-relief-act-scra.
47 See Supplement I to 12 CFR part 1026, Official Interpretations, 41e4iiiSmall Servicer Determination.

PO 00000

Frm 00037

Fmt 4700

Sfmt 4700

72815

rule, an FCU should be well capitalized for a minimum of the six quarters preceding its purchase of MSRs. The Board further asked whether the final rule should limit eligibility for the authority to purchase MSRs from other FICUs to FCUs that have a composite CAMEL rating of 1 or 2 with a Management rating of a 1 or 2 for at least the last two examinations.
Three commenters specifically supported a requirement that an FCU be well capitalized in order to purchase MSRs from other FICUs. One commenter stated that not every investment vehicle is appropriate for all credit unions and additional criteria for an FCU to be eligible to purchase MSRs is needed, including criteria based on net worth or well capitalized as defined by NCUA regulations. Another commenter stated that, for the safety and soundness of an FCU purchasing MSRs, capitalization will be a prudent factor and that RBC rules at Tier 1
should apply. The third commenter stated that an FCU should be required to be well capitalized in order to purchase MSRs from FICUs and that capital levels should be sustained for at least six quarters before MSRs can be purchased from other FICUs.
One commenter opposed eligibility criteria based on a credit unions capital levels or CAMEL rating. This commenter stated that, although the safety and soundness of the credit union system is a top priority, such limitations would potentially hinder credit unions ability to grow, make more loans to its members, and better serve their communities. This commenter also noted that when FCUs are servicing a loan that they originate, they are not subject to conditions regarding their capital levels and CAMEL rating, so there is no need for any eligibility criteria if they were to purchase MSRs from an FICU. Another commenter also opposed using the CAMEL system as additional eligibility criteria. This commenter stated that the CAMEL
system may be overly qualitative and could lead to unintended consequences for non-participating FCUs with a CAMEL 1 or 2 rating. This commenter suggested that FCUs could possibly suffer reputational harm if they chose not to participate in MSR purchases because interested parties might presume the FCU has a CAMEL 3 or 4
rating.
Two commenters stated that the rule should require FCUs to have a composite CAMEL rating of 1 or 2 and one of these commenters also supported a requirement that eligible FCUs also have a Management rating of a 1 or 2 for
E:FRFM23DER1.SGM

23DER1