Proposed Regulations

This review is in connection with the agency's larger initiative to maintain the competitiveness of United States capital markets.

Recently, the Board of Governors of the Federal Reserve System (Board) published in the Federal Register a notice of public hearing and request for public comment on the home equity lending market.

Recently, the National Credit Union Administration (NCUA), along with the other federal financial institutions regulators (collectively, the Agencies), issued a joint proposed rule to amend its rules implementing the privacy provisions of the Gramm- Leach-Bliley Act (GLB Act). The Agencies were required by section 728 of the Financial Services Regulatory Relief Act of 2006 (Regulatory Relief Act) to propose a safe harbor model privacy form that financial institutions may use to provide disclosures under the Agencies' privacy rules.

Recently, the Board of Governors of the Federal Reserve System (Board) issued proposed amendments to Regulation D and Regulation I. The amendments include two substantive changes from existing law along with several editorial changes and amendments for clarification.

Recently, the National Credit Union Administration (NCUA) issued a proposed rule to amend its regulations governing Freedom of Information Act (FOIA) requests. The proposed rule would make several housekeeping changes, but also clarify where requests must be sent, how requests must be addressed, and what information must be included in a request.

NCUA's longstanding policy is to review, on a rolling basis, a third of its regulations each year in order to update, clarify, and simplify existing rules and eliminate redundant or unnecessary provisions. See IRPS 87-2. The proposal is a product of the agency's 2007 regulatory review.

Recently, the National Credit Union Association (NCUA) issued an interim final rule regarding its share insurance rules for revocable trust accounts. The interim rule was issued just days before the enactment of the Emergency Economic Stabilization Act of 2008, by which Congress increased share insurance coverage of accounts covered from $100,000 to $250,000. Thus, the effect of the increase in coverage is not reflected in the interim final rule; however, by operation of law, coverage will generally henceforth be up to $250,000 per account beneficiary (maximum of $1.25 million per account) until December 31, 2009. The amount will revert back to $100,000 per beneficiary (maximum of $500,000 per account) unless Congress amends the expiration date.

Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the NCUA and the banking regulatory agencies are required to prescribe real estate appraisal standards in connection with “federally related transactions,” which are generally defined as transactions that the Agencies regulate. See Pub. L. 101-73, 103 Stat. 183 (1989). The standards are required to be in accordance with generally accepted uniform appraisal standard promulgated by the Appraisal Standards Boards of the Appraisal Foundation (Appraisal Board).

Congress enacted TILA to regulate certain credit practices and promote the informed use of consumer credit by requiring uniform disclosures about its costs and terms. Under TILA section 128, creditors must provide TILA disclosures to consumers in writing before consummation of certain closed-end credit transactions. Exemptions are provided for a limited number of transactions.

The rule requires financial institutions to adopt reasonable procedures to ensure that periodic statements are mailed to consumers at least 21 days before the payment is due. Notably, this 21 day requirement applies to credit cards and “all open-end consumer credit plans.”

The NACHA Operating Rules (Rules) currently require credit unions to make adjustment entries within 60 days after the settlement date. This has proven difficult to meet in some cases where a claim of unauthorized entry is made within the allowable period of 60 days from the transmittal showing the unauthorized transaction.

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.