Proposed Regulations

The proposal, which amends Parts 701 and 741 of the NCUA Rules and Regulations, would limit the aggregate amount of indirect vehicle loans serviced by any single third-party to a percentage of the credit union's net worth.

Recently, the Federal Trade Commission (FTC) announced that it is seeking comment on private sector uses of social security numbers (SSNs). The request for comment is a response to recommendations by the President's Identity Theft Task Force (Task Force), which issued a strategic plan to combat identity theft earlier this year.

Recently, the National Credit Union Administration (NCUA) published in the Federal Register a proposed rule regarding member inspection of credit union books, records, and minutes. Under NCUA's current policy, credit unions must look to state corporate law to determine members' right to access credit union records.

The invitation to comment seeks input on whether there is a need for valuation guidance and if so, how specific the guidance should be. Further, FASB seeks comments on what measurement attribute or attributes should be used for financial reporting.

Recently, the Department of Housing and Urban Development (HUD) issued a proposed rule to amend its Real Estate Settlements Procedures Act (RESPA) regulations.

In 2003, the FACT Act was signed into law to amend the Fair Credit Reporting Act (FCRA) to enhance the ability of consumers to combat identity theft, increase the accuracy of consumer report, and allow consumers to exercise greater control regarding the type and amount of solicitations they receive. Among other things, it addressed risk-based pricing, the practice of setting and adjusting the price and other terms of credit offered or extended to a particular consumer to reflect the risk of nonpayment by the consumer.

These regulations were last updated twelve years ago to reflect changes in costs and practices. Now the Board is proposing to once again update the rules to reflect new changes in the costs and practices of data collection and dissemination.

NCUA is amending its share insurance rules to reflect Congress' recent action to increase temporarily the standard maximum share insurance amount (SMSIA) from $100,000 to $250,000 and increase coverage for custodial loan accounts.

Regulation E implements the Electronic Funds Transfers Act (Act), which establishes rights, liabilities, and responsibilities for participants involved in EFT systems. Covered transactions under the Act include transfers initiated through automated teller machines (ATM), point-of- sale (POS) terminals, automated clearinghouses (ACH), telephone bill-payment plans, and remote banking programs.

On July 30, 2008, Congress enacted the SAFE Act, as part of the Housing and Economic Recovery Act of 2008. See 12 U.S.C. 5101-5116. The SAFE Act mandates the creation of a nationwide licensing and/or registration system for mortgage loan originators. Under the Act, all States must provide for a licensing regime for mortgage loan originators within one year of enactment (or two years for States whose legislatures meet biennially) and individuals employed by a State-regulated institution are prohibited from engaging in the business of residential mortgage loan origination without first obtaining and maintaining a license and registration and obtaining a unique identifier (State licensing). Further, NCUA and the federal banking agencies must promulgate rules governing registration of mortgage loan originators of the institutions they regulate.

TILA was enacted for the purposes of providing meaningful disclosure of credit terms to enable consumers to compare credit terms available in the marketplace more readily and avoid uninformed use of credit, and to protect consumers against inaccurate and unfair credit billing. The disclosures under TILA and Regulation Z differ depending on whether the consumer credit is an open-end or a closed end loan.

The NCUA proposes to amend its Chartering Manual, which contains the agency's rules on community chartering and field of membership.

The NCUA Board recently approved an interim final rule amending its regulation that implements the Truth in Savings Act (TISA). This interim final rule establishes uniform standards for the electronic delivery of disclosures required by TISA and is substantially similar to the Federal Reserve Board’s recent interim final rule amending Regulation DD.

On April 19, 2001, the National Credit Union Administration (NCUA) approved a proposed rule that would revise NCUA’s regulations on nondiscrimination in advertising. The proposed rule is similar to the Federal Deposit Insurance Company’s rule and would give credit unions greater flexibility in giving notice of nondiscrimination.

The Federal Reserve Board has issued interim final rules establishing standards for the electronic delivery of disclosures under Regulations B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in Savings). Under the rules, financial institutions, creditors, lessors, and others may deliver disclosures electronically if they obtain consumers' consent in accordance with the Electronic Signatures in Global and National Commerce Act (the "E-Sign Act").

On March 8, 2001, the National Credit Union Administration (NCUA) approved a proposed rule on regulatory flexibility (RegFlex). This rule would permit credit unions with advanced levels of net worth and consistently strong examination ratings to be exempt, in whole or in part, from certain NCUA regulations.

On February 15, 2001, the National Credit Union Administration (NCUA) approved a proposed rule to amend Part 712, the credit union service organization (CUSO) regulation. The proposal clarifies that the list of activities currently in the rule is illustrative and adds a provision encouraging federal credit unions to seek an advisory opinion on whether a proposed activity is authorized.

On February 15, 2001, the National Credit Union Administration (NCUA) approved a proposed rule to amend Part 749, NCUA’s rule on vital records preservation. The proposal converts the regulation into a question-and-answer format and clarifies that records may be preserved in electronic form.