Topics In This Issue

• Federal Issues
• State Issues
• Courts
• Firm News
• Firm Publications
• Mortgages
• Banking

• Consumer Finance
• E-Commerce
• Criminal Enforcement

Excerpt from Federal Issues

FinCEN Finalizes New Anti-Money Laundering Rules for Nonbank Mortgage Lenders and Originators. On February 7, the Financial Crimes Enforcement Network (FinCEN) released a final rule that subjects nonbank residential mortgage lenders and originators to certain anti-money laundering (AML) regulations already applicable to other types of financial institutions. Under the new regulations, nonbank lenders and originators will be required to establish anti-money laundering programs and file suspicious activity reports (SARs). The regulations take effect sixty days after being published in the Federal Register. Covered firms will have 180 days after publication to comply. For additional details, please see BuckleySandler's recent Special Alert about this final rule.

NCUA Publishes Advance Notice Regarding Use of Financial Derivatives Transactions to Offset Interest Rate Risk. On February 3, the NCUA published a second advance notice of proposed rulemaking seeking additional comments to identify the conditions for federal credit unions to engage in certain derivatives transactions to offset interest rate risk. The second notice follows one issued in June 2011, which requested comment on potentially modifying NCUA's rule on investment and deposit activities to allow such derivative transactions. The current notice focuses on the ability of federal credit unions to independently engage in derivative transactions, without the oversight of a third-party provider. The NCUA is seeking comment on eligibility requirements and safety and soundness considerations that might limit the types of derivatives that federal credit unions may use, exposure limits, and counterparty risk. Comments responding to the notice must be received by April 3, 2012.

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