Servicemember Foreclosure Protections Expand in 2013

Servicemembers will have three additional months of protection after they separate from active duty.

January 7, 2013

Credit unions must accommodate extended foreclosure protections for servicemembers early this year.

Effective Feb. 2, 2013, servicemembers will have three additional months of protection after they separate from active duty via the Servicemembers Civil Relief Act (SCRA).

In August, President Obama signed the Honoring America’s Veterans and Caring for Camp Lejeune Families Act, temporarily extending those protections from nine months to a full year.

The protections will sunset at the end of 2014 and revert to 90 days starting in 2015, unless Congress extends them again.

Lawmakers have a history of doing so: The Housing and Economic Recovery Act amended the SCRA in 2008 to provide nine months of protection, instead of the original 90 days.

This provision was set to expire at the end of 2010, but the Helping Heroes Keep Their Homes Act extended it through 2012.

The SCRA provides a wide range of protections for those entering the military, called to active duty, or already deployed.

NCUA Releases Supervision Policy

NCUA released a public version of its new National Supervision Policy Manual, which describes internal operations and procedures for supervisory staff.

The manual is the product of a two-year project to create uniform operations and procedures for supervision standards and improve the agency’s ability to operate efficiently throughout the U.S. NCUA started training examiners on the procedures outlined in the manual in April.

“Sensitive parts” of the manual remain confidential and aren’t included in the public version. Disclosure could impair NCUA’s ability to minimize losses to the National Credit Union Share Insurance Fund or negatively affect the agency’s ability to conduct effective supervision, the agency says. View the guide at

Federal Agencies Collaborate on Mortgage Database

The Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) have agreed to collaborate on the creation of a National Mortgage Database—the first comprehensive repository of detailed mortgage information.

The database will include information spanning the life of a mortgage from origination through servicing and include a variety of borrower characteristics.

Specifically, the database will include loan-level data about the mortgage including:

  • Mortgage product and terms;
  • Borrower’sfinancial and credit profile;
  • Whether the property was purchased or refinanced; and
  • Ongoing payment history of the loan.

Data will update monthly and track as far back as 1998. Additionally, this database fulfills an FHFA requirement under the Housing and Economic Recovery Act of 2008 to conduct a monthly mortgage market survey.

The agencies will build the database by matching a nationwide sampling of credit bureau files on borrowers’ mortgages and payment histories with informational files such as the Home Mortgage Disclosure Act database, property valuation models, and other data files to create a comprehensive picture for each mortgage. The database will not contain personally identifiable information.

Development of the database is underway and the agencies expect an early version some time in 2013.

They are exploring ways to share database information with other agencies, academics, and the public once the database is complete.

More information is available at

  FFIEC Revises TSP Booklet

The Federal Financial Institutions Examination Council (FFIEC) issued a revised Supervision of Technology Service Providers (TSP) booklet, which is part of the FFIEC Information Technology (IT) Examination Handbook.

The FFIEC, which promotes uniformity in the supervision of financial institutions, consists of NCUA, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau. 
The TSP booklet: 
  • Contains guidance for examiners and financial institutions on the supervision of TSPs. 
  • Addresses the agencies’ statutory authority to supervise third-party servicers that enter into contractual ar-rangements with regulated financial institutions. 
  • Outlines the agencies’ Risk-Based Examination Priority Ranking Program. 
  • Includes an appendix describing the Uniform Rating System for Information Technology (URSIT), which the agencies use for financial institutions and their TSPs.
  • Stresses that boards of directors and management must make sure their financial institutions conduct outsourced activities in a safe and sound manner and in compliance with applicable laws and regulations. 
Also part of the IT handbook, the Outsourcing Technology Services booklet discusses managing outsourced relationships in-depth. 
The guidelines describe the process agencies follow to implement the interagency supervisory programs and include the reporting templates examiners use throughout the supervisory cycle.