- OTS Issues Guidance on Compliance with Overdraft Protection Rules
The OTS issued a memorandum to chief executive officers on September 14 describing revisions to its procedures for examining thrift institutions for compliance with Regulation DD, which implements the Truth in Savings Act. The revisions update the OTS’s examination procedures to encompass recent amendments to Reg. DD that address overdraft protection disclosure practices, including balances disclosed to consumers through automated systems.
Nutter Notes: The amendments to Reg. DD include a requirement that depository institutions use the term “Total Overdraft Fees” on periodic statements provided to consumers effective October 1, 2010. The amendments also require that periodic statements include the aggregate fee disclosure for overdraft services, if applicable, regardless of whether the institution promotes the payment of overdrafts.
- NMLS Not Ready for Registration of Loan Originators
Earlier this year, the federal banking agencies issued jointly developed final rules that require mortgage loan originators to register with the Nationwide Mortgage and Licensing System and Registry (NMLS) as required by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The SAFE ACT final rules become effective on October 1, but the NMLS will not be available for federal registrations until January 2011, at the earliest.
Nutter Notes: The registration requirement will not become effective until the NMLS has been modified to accept registrations from agency-regulated institutions and their employees. The federal banking agencies will make an advance public announcement of the date when the NMLS will begin accepting federal registrations, and these institutions and their mortgage loan originators will then have 180 days to comply with the initial registration requirements.