Compliance Blog

Blog Home
Mar 20, 2009
Categories: Accounts

Hill Testimony; NCUA Board Meeting

Posted by Steve Van Beek

Yesterday was a busy day for NCUA.  In the morning, Chairman Fryzel testified before the Senate Banking Committee at a hearing on "Modernizing Bank Supervision and Regulation, Part I."  NCUA issued a press release summarizing Chairman Fryzel's testimony.  Part II of the hearing will be held on March 24, 2009.  The text of Chairman Fryzel's testimony is here.  

In the afternoon, NCUA Executive Director, David Marquis, testified before the Senate Banking Committee at a hearing on "Current Issues in Deposit Insurance."  At the same hearing, Terry West, CEO of Vystar CU testified on behalf of CUNA and David Wright, CEO of Services Center FCU, testified on behalf of NAFCU.

Over in the House, Sheila Albin, Associate General Counsel at NCUA, testified yesterday before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit (say that five times fast...)  The hearing was on two bills - H.R. 627, the Credit Cardholders' Bill of Rights Act of 2009; and H.R. 1456, the Consumer Overdraft Protection Fair Practices Act of 2009.  The witness list and background on the hearing can be found here.  Sheila Albin's s testimony is here. 

***

NCUA also conducted its March Board meeting yesterday afternoon.  The open meeting agenda consisted of four items:

  1. Proposed Rule – Parts 741, 748 and 749 of NCUA’s Rules and Regulations, Credit Union Reporting.
  2. Proposed Rule – Part 707 of NCUA’s Rules and Regulations, Truth in Savings Act Disclosures.
  3. Final Rule – Part 742 of NCUA’s Rules and Regulations, Regulatory Flexibility Program.
  4. Insurance Fund Report.
The proposed rule on Credit Union Reporting addresses NCUA's movement toward web-based Call Reports.  For additional information, NCUA has made this presentation available which explains the transition. 

The proposed rule on Truth in Savings, Part 707, will align NCUA's regulations with already finalized Federal Reserve changes to its Truth in Savings (Regulation DD) on electronic disclosures and disclosure of aggregate overdraft fees on periodic statements.  The comment period is 60 days.  In NCUA's words:

SUMMARY: As required by the Truth in Savings Act (TISA), NCUA is proposing to amend its TISA rule and official staff interpretation to align it with the Federal Reserve Board’s Regulation DD. Specifically, the rule would amend the provisions and provide guidance on the electronic delivery of disclosures. Additionally, NCUA is proposing to amend the rule and the official staff commentary to require all credit unions to disclose aggregate overdraft fees on periodic statements; currently, this disclosure requirement only applies to credit unions that promote the payment of overdrafts. The proposed rule also addresses balance disclosures credit unions provide to members through automated systems. 

The final rule on Reg Flex provides additional leeway to Reg Flex FCUs who have acquired unimproved land for future expansion.  The final rule will be effective 30 days after it is published in the Federal Register.  Here is the summary:

SUMMARY: NCUA is amending its Regulatory Flexibility (RegFlex) Program to provide additional flexibility to qualifying federal credit unions (FCUs) when acquiring unimproved land for future expansion. Previously, when an FCU acquired unimproved land for future expansion and did not fully occupy the completed premises within one year, it was required to partially occupy the completed premises within three years or obtain a waiver. This amendment increases the three years to six years for RegFlex FCUs without a waiver. NCUA is also making conforming amendments to its fixed asset rule to be consistent with the RegFlex changes.

Detailed information on the Share Insurance Fund Report can be found here and here. 

The board agenda and materials can be found here.  In addition to the open meeting, NCUA also conducted a closed meeting.

***

In case you were wondering.....Yes - the 16 links in one post is a NAFCU Compliance Blog record. 

Have a great weekend everyone!  Enjoy the great college basketball -  Go Blue!

Categories