- Division of Banks Issues Final Regulations on Reverse Mortgage Loans
The Division of Banks on September 30 issued final regulations that clarify the opt-in and counselor certification requirements for reverse mortgage loans established by Chapter 258 of the Acts of 2010. The law prohibits a lender from making a reverse mortgage loan unless the mortgagor has affirmatively opted in and has received counseling from an approved counselor.
Nutter Notes: The final regulations, 209 C.M.R. Part 55.00, also establish the eligibility, procedures and disclosure requirements for a reverse mortgage program, which includes a mandatory form of opt-in disclosure document that the lender must obtain from each borrower. The regulations became effective on October 14.
- Federal Reserve Proposes Changes to Reserve Requirements
The Federal Reserve on October 11 issued proposed amendments to its Regulation D that are intended to simplify the administration of reserve requirements and reduce administrative and operational costs for both depository institutions and the Federal Reserve Banks. Comments on the proposed amendments are due by December 19, 2011.
Nutter Notes: The proposed amendments would, among other things, create a common 2-week maintenance period for all depository institutions, create a penalty-free band around reserve balance requirements in place of carryover and routine penalty waivers, discontinue as-of adjustments related to deposit revisions, and eliminate the contractual clearing balance program.