Proposed Regulations

NCUA is considering clarifying or revising aspects of its member business loans rule related to loan-to-value ratio, collateral and security requirements, the requirement that credit unions use the services of individuals with two years experience in the type of lending, credit union service organization involvement, loan participations, and waivers.

The amendments will allow Federal Reserve Banks to pay interest on depository institutions' balances held at Federal Reserve Banks to satisfy reserve requirements and on excess balances of required reserve balances and clearing balances. The interim final rule also includes several minor changes to the Board's clearing balance policy and the method for recovering float costs.

On July 30, 2008, the Board published a final rule amending Regulation Z, which implements the Truth in Lending Act (TILA). The July rule requires creditors to give consumers good faith estimates on mortgage loans other than those secured by the consumer's primary dwelling (such as a refinance loan). The July rule also requires that the disclosures be provided before the consumer pays any fee, other than a fee to obtain the consumer's credit report.

The proposal would amend current rules regarding electronic disclosures. Additionally, the rule would also require new disclosures regarding overdraft protection fees.

Recently, the National Credit Union Administration (NCUA), along with the Office of Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporate (FDIC), and Office of Thrift Supervision (OTS), issued a proposed interagency guidance on funding and liquidity risk management (proposed guidance). The proposed guidance reiterates existing principles of liquidity risk management and describes the process that institutions should follow to identify, measure, monitor and control their funding and liquidity risk.

The Federal Reserve published a proposed rule amending Regulation Z to implement the provisions of the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) that go into effect on Feb. 22, 2010. The Board's proposal covers a wide range of activities related to credit card lending.

On September 13, 2001, the NCUA Board of Directors unanimously approved a proposed rule that seeks comments on several issues in Part 704, the rule governing corporate credit unions (corporates). The proposed rule follows two earlier ANPRs issued in 1999 and 2000 seeking similar information.

On March 8, 2001, the National Credit Union Administration (NCUA) approved a proposed rule on regulatory flexibility (RegFlex).

On October 19, 2000, the NCUA Board of Directors unanimously approved a notice of proposed rulemaking that implements parts of the Fair Credit Reporting Act (FCRA).

At its February meeting, the NCUA Board approved a proposed rule that tracks recent rulemaking by the Federal Deposit Insurance Corporation to resolve issues arising from the “legal isolation” requirement articulated in Financial Accounting Standards Board Statement No. 125.

On November 26, 2002, the Board of Governors of the Federal Reserve issued proposed revisions to the official staff commentary on Regulation Z, which applies and interprets the requirements of Regulation Z.

The Internal Revenue Service has published a proposed regulation on the reporting requirements for interest on deposits maintained at U.S. Offices of certain financial institutions and paid to nonresident alien individuals that are residents of specified countries.

On April 12, 2002, Rules Work Group #52 of the National Automated Clearing House Association (NACHA) published proposed amendments that would clarify the NACHA Operating Rules to address inconsistencies identified within the Rules and to modify certain aspects of various applications to function more efficiently in today's marketplace.

On September 24, 2003, NCUA issued a proposed rule updating its rule regarding the conversion of insured credit unions to mutual savings banks. The proposed rule seeks to increase disclosure requirements to ensure that the credit union's notice of conversion to its members provides full disclosure and transparency

On March 27, 2003, the National Credit Union Administration published proposed revisions to the member business loan regulation and related provisions in the prompt corrective action, corporate credit union, and credit union service organization rules.

As required by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), the proposed regulation improves the notice that informs consumers of their right to opt-out of prescreened solicitations for credit or insurance. The proposed rule: 1) establishes certain baseline requirements for language and syntax that effectively convey the intended message to the reader, and 2) establishes guidelines for presentation and format that call attention to the notice and enhance its readability.

The proposed amendments are meant to clarify the relationship between the prior notice provision and the commencement of service provision, so as to eliminate potential confusion. Additionally, the amendments attempt to reorganize the requirements in the current rule making it easier to understand.

Recently, the Federal Reserve Board (Board) issued a notice of study and request for information regarding disclosure practices with regard to debit card purchases. Specifically, the Board is concerned about fees imposed in point-of-sale (POS) debit transactions when customers provide their personal identification number (PIN). The current rules governing fee disclosure are the Electronic Fund Transfers Act (EFTA), and Regulation E.

The proposed rule will authorize all federal credit unions and corporate credit unions to invest in exchangeable collateralized mortgage obligations representing interests in one or more stripped mortgage backed securities, subject to safety and soundness concerns. Additionally, the proposed rule contains miscellaneous technical revisions and clarifications to Part 703 and Part 704.

The Federal Reserve Board (Board) has issued a proposed rule to amend Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and the accompanying official staff commentary. The Board has proposed revisions that would clarify the disclosure requirements imposed on operators that charge a fee on a consumer when initiating and electronic fund transfer or balance inquiry at an ATM.