Proposed Regulations

Recently, the National Credit Union Administration proposed a rule on credit union mergers, federal share insurance terminations, and conversions from federal share insurance to nonfederal insurance.

Section 213(e) of the Fair and Accurate Credit Transactions Act (FACT Act) requires the Federal Reserve Board (Board) to conduct a study on prescreened solicitations for credit or insurance. Specifically, Section 213(e) of the FACT Act directs the Board to conduct a study of the ability of consumers to avoid receiving written offers of credit or insurance in connection with transactions not initiated by the consumer, and the potential impact that any further restrictions on providing consumers with these offers would have on consumers.

Recently, the National Credit Union Administration (NCUA) issued a proposed rule to revise its regulations pertaining to the Community Development Revolving Loan Program For Credit Unions (CDRLP). The revision proposes to permit student credit unions to participate in the CDRLP.

Recently, NACHA, the Electronic Payments Association issued a request for comment with regard to ACH entries that involve offshore parties or correspondent accounts but that originate within the United States and therefore do not currently treated as cross-border transactions. These entries are of concern because they do not receive the same higher level of scrutiny as do cross-border entries using the CBR Standard Entry Class Code, as required by the Federal banking regulators and the U.S. Treasury Department's Office of Foreign Asset Control (OFAC).

The National Credit Union Administration (NCUA) has published for comment proposed amendments to the Regulatory Flexibility Program (RegFlex) (12 CFR Part 742).

Recently, the Department of Defense (DoD or Department) issued a proposed rule amending the Department regulations relating to policy and procedures on personal commercial solicitations on DoD installations. This policy controls all solicitations of military personnel for the sale of financial products and insurance on base, including any activity by credit unions.

Recently, the Board of Governors of the Federal Reserve System (Board) issued for public comment a proposed rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and its official staff commentary. The proposed amendments would create an exception for small-collar transactions of $15 or less from the requirement that electronic terminal receipts be made available to consumers at the time of the transaction.

Recently, the National Credit Union Administration issued for public comment a notice of proposed rulemaking concerning the requirements for reporting and filing suspicious activity reports (SAR). The proposed changes to §748.1(c) would provide some consistency with the SAR regulations issued by the other four Federal Financial Institutions Examination Council regulators and would extend to credit unions the banks' practice of notifying Board of Directors of SAR filings.

Recently, the Federal Reserve Board (Board) issued an interim final rule amending Regulation E, which implements the Electronic Fund Transfers Act, and its official staff commentary.

Recently, the National Credit Union Administration (NCUA), along with the other Federal Financial Institution Examination Council (the Agencies) regulators, issued Proposed Guidance on Garnishment of Exempt Federal Benefit Funds.

Recently, the Board of Governors of the Federal Reserve System (Board) issued a proposed rule to amend Regulation Z, which implements the Truth in Lending Act (TILA). The proposed rule would apply principally to open-end credit that is not homesecured, and address a variety of issues relating to the format and content of open-end credit disclosures and the substantive protections provided under the regulation.

On March 27, 2007, the National Credit Union Administration (NCUA) published a proposed rule related to federally insured credit unions' obligation to maintain a records preservation program. The proposed rule amends Parts 748 and 749 of the NCUA's Rules and Regulations by clarifying requirements for preserving vital records and the meaning of “catastrophic act,” recommending items for consideration in restoring vital member services, and adding a new appendix comprised of recommended guidelines.

Recently, the Board of Governors of the Federal Reserve System (Board) issued a proposed rule to amend Regulation Z. Under the Home Ownership and Equity Protection Act (HOEPA), which amended the Truth in Lending Act, the Board is authorized to prohibit unfair or deceptive acts and practices in connection with mortgage lending. Accordingly, the proposed amendments would prohibit certain unfair, abusive or deceptive practices in connection with closed-end mortgage loans. The proposal is intended to focus particularly on abuses in the subprime mortgage market, while generally excluding the prime market.

The Federal Credit Union Act (FCU Act) permits federal credit unions (FCUs) to lend up to 1% of their paid-in and unimpaired capital and surplus and to invest an equivalent amount in CUSOs. NCUA's regulations allow FCUs to invest or lend to a CUSO only if the CUSO primarily services credit unions or credit union members.

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 December 14, 2001, NACHA Rules Work Group #35 proposed amendments to the NACHA Board that would modify certain aspects of the Rule Enforcement Procedures.