Proposed Regulations

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 Fannie Mae entered into a Cooperation Agreement (Agreement) with the Office of Federal Housing Enterprise (OFHEO) and the New York Attorney General's Office to adopt a Home Valuation Protection Code (Code). As part of the agreement, Fannie Mae, along with Freddie Mac and other industry players, will also contribute to the establishment of an Independent Valuation Protection Institute (Institute). Fannie Mae has requested comments from its customers a

As directed by the Bank Secrecy Act (BSA), the Department of Treasury's FinCEN requires financial institutions, including credit unions, to report transactions in currency in excess of $10,000. The Money Laundering Suppression Act of 1994 amended the BSA by establishing a statutory system of exempting transactions by certain customers of depository institutions. This system devised two types of exemptions: mandatory exemptions and discretionary exemptions.

The proposed rule would modify the calculation of net worth ratio in cases involving mergers of natural person credit unions so that the post-merger ratio would be calculated by dividing the sum of the acquiring credit union's retained earnings and the merging credit union's retained earnings by the total assets (under GAAP, total assets are the sum of the acquiring credit union's total assets at book value and the merging credit union's total assets at fair value).

Recently, the National Credit Union Administration (NCUA) issued a proposed rule to revise its rules relating to the accuracy of advertising and notice of insured status. Specifically, the proposed changes seek clarify and reduce the burden of existing rules regarding shared branch networks which include nonfederally-insured credit unions.

Corporate credit unions have played an important role in the credit union industry. They provide critical services to natural person credit unions, including payment and clearing services, enabling access to wire transfer facilities and automated clearing house transactions, as well as loan and investments services that provides small credit unions to achieve economies of scale and access to greater market returns otherwise unavailable to them. They have also been an important source of liquidity for credit unions, and have served as agents for the NCUA on loans funded by the NCUA's Central Liquidity Facility.

In response to questions concerning the interagency guidelines issued by the National Credit Union Administration (NCUA), Federal Reserve, and Office of Thrift Supervision (OCC), the agencies issued new, amended guidelines.

Recently, the Federal Housing Finance Agency (FHFA) issued an Advance Notice of Proposed Rulemaking (ANPR) regarding the duty for the Federal Home Loan Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to serve underserved markets.

The proposed rule would make significant changes to Part 704 of NCUA's rules and regulations, which pertains to corporate credit unions (corporates). The issues addressed include: capital requirements, investment authority, asset and liability management (ALM), corporate governance and corporate credit union service organizations (CUSOs).

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.

The Federal Accounting Standards Board (FASB) has issued the final Statements on Business Combinations, Number 141 and Goodwill and Other Intangible Assets, Number 142. These Statements could potentially change accounting methods for credit union mergers in significant ways.