Proposed Regulations

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

President Bush signed the Emergency Economic Stabilization Act of 2008 (EESA) on October 3, 2008. EESA accelerated the date by which the Reserve Banks had authority to pay interest on required reserves and excess reserves held at the Reserve Banks. On October 9, 2008, the Board published an interim final rule directing Reserve Banks to pay interest on required reserves held under Regulation D as well as excess reserves.

Each year, the National Credit Union Administration (NCUA) reviews one-third of its regulations to ensure they are necessary, appropriate, clear and understandable.

This proposed rule is part of a detailed review of Regulation Z dating back to 2004. The Board has been conducting a comprehensive, staged review of all of Regulation Z since that time. This proposal deals primarily with closed-end credit secured by real property or a consumer's dwelling.

The proposed guidance aims to minimize compliance and reputation risk concerns related to reverse mortgage lending.

On December 13, 2001, the NCUA Board approved an interim final rule amending the chartering and field of membership manual. The amendment consists of two revisions: first, an existing community chartered credit union need not document how it plans to serve the entire community and second, the definition of an investment area has been updated.

The Federal Reserve Board has issued a request for comment on how the Board's regulations may be adapted to the online delivery of financial services. This request for comment was initiated due to the Gramm-Leach-Bliley Act of 1999, which requires federal banking regulators to conduct a study of regulations and submit a report about adapting existing legislative and regulatory requirements to online banking and lending.

On November 16, 2000, the NCUA Board of Directors unanimously approved an advance notice of proposed rulemaking (ANPR) that seeks comments on several issues in Part 704, the rule governing corporate credit unions (corporates).

The Federal Reserve Board is proposing amendments to Regulation Z revising the disclosure requirements for credit and charge card solicitations and applications. The proposed revisions would implement a type size requirement for APR disclosures and strictly construe the requirement that disclosures be “clear and conspicuous.”

On November, 21 2002, NCUA issued a proposed rule, IRPS02-4, Change in Definition of Small Credit Union. This proposed rule seeks to update the definition of Small Credit Union to reflect inflation and expands NCUA's policy of reviewing all existing regulations every three years by giving the public notice of those regulations under review.

The USA PATRIOT Act of 2001 mandated implementation of rules to improve the identity verification programs financial institutions utilize for the purpose of combating terrorism and money laundering.

The USA PATRIOT Act of 2001 mandated implementation of rules to reduce the barriers to information sharing among financial institutions and federal government law enforcement agencies for the purpose of combating terrorism and money laundering. On February 26, 2002, the Department of the Treasury published a proposed regulation pursuant to that mandate. The Secretary of the Treasury requests public comment.

At its last board meeting, NCUA issued a Notice and Request for Comment for some of its regulations pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). This Notice and Request for Comment pertains to comments the NCUA must solicit under EGRPRA; it is not a regulation.

The Internal Revenue Service has issued Notice 2005-1, guidance relative to section 409A of the Internal Revenue Code (IRC) as added by the American Jobs Creation Act (AJCA) of 2004, Pub. L. No. 108-357, 118 Stat. 1418. New section 409A provides that all amounts deferred under a nonqualified deferred compensation plan for all taxable years are currently includible in gross income to the extent not subject to a substantial risk of forfeiture and not previously included in gross income, unless certain requirements are met.

The Financial Literacy and Education Improvement Act established the Financial Literacy and Education Commission (Commission) for the improvement of financial literacy of persons in the United States.

Section 214 of the Fair and Accurate Credit Transactions Act (FACT Act) adds a new section 624 to the Fair Credit Reporting Act (FCRA). This section generally prohibits use for marketing purposes of a consumer's information that is received by an affiliate from an affiliate. For a credit union, a credit union service organization (CUSO) is its affiliate.

The rule governs federal credit union (FCU) ownership of fixed assets and, among other things, limits investment in fixed assets to five percent of an FCU's shares and retained earnings.

On December 18, 2003, NCUA issued an Advance Notice of Proposed Rulemaking (ANPR) on an interagency proposal to consider alternative forms of privacy notices under the Gramm-Leach-Bliley Act (GLBA). NCUA, along with the Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Reserve Board, Federal Deposit Insurance Corporation, Federal Trade Commission (FTC), and the Commodity Futures Trading Commission, and Securities and Exchange Commission (the Agencies), is requesting comment on whether the Agencies should consider amending the regulations that implement sections 502 and 503 of the GLBA to allow or require financial institutions to provide alternative types of privacy notices that would be easier for consumers to understand.

The National Credit Union Administration (NCUA) recently proposed an amendment to its rules on the purchasing of assets and assumption of liabilities in order to clarify which transfers of assets or accounts require approval by the NCUA Board. NCUA also seeks comments on the provision governing non conforming investments by federally- insured, state-chartered credit unions (FISCUs).