Proposed Regulations

Recently, the National Credit Union Administration(NCUA) proposed to add a new part 796 to NCUA rules and regulations that implements new, post-employment restrictions for certain senior NCUA examiners. The proposed rules prohibit senior NCUA examiners from employment with a credit union for one year if the examiner had continuing, broad responsibility for examination of that credit union for two or more months during the examiner's last twelve months of employment.

Recently, the National Credit Union Administration (NCUA) proposed to amend its rule on fidelity bonds. The proposed amendment would increase the maximum allowable deductible, currently $200,000, and alter the minimum required coverage; NCUA also proposes to discontinue the practice of posting approved bonds in the rule, but to continue listing and updating them on its website.

Recently, the National Credit Union Administration (NCUA) published a request for comments and suggestions on ways it can identify and reduce regulatory burden with respect to safety and soundness and anti-money laundering regulations that may be outdated, unnecessary, or unduly burdensome. This notice is a part of the regulatory review required by section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). In fulfilling the requirements of the EGRPRA, NCUA desires to reduce regulatory burden while ensuring the continued safety and soundness of federally insured credit unions and appropriate consumer protections.

On July 20, 2006, NCUA published a proposed rule to amend its rules and regulations regarding federal credit union (FCU) investments in mortgage note repurchase transactions. Current regulations prohibit FCUs from investing in first-lien mortgages other than to complete a pool of loans to be sold on the secondary market. The proposed amendment would expand FCU permissible investments to include repurchase transactions in which the instrument consists of first-lien mortgage notes, if certain conditions are met.

Recently, the National Credit Union Administration (NCUA) issued an advance notice of proposed rulemaking requesting comments on whether and how to modify its rules regarding Supervisory Committee audit rules.

Recently, the Small Business Administration (SBA) issued a proposed rule to incorporate its risk-based lender oversight program into SBA regulations in order to provide for a more coordinated and effective oversight of financial institutions originating and managing SBA guaranteed loans.

Recently, the National Credit Union Administration (NCUA) issued for public comment proposed amendments to §701.23 of its rules and regulations. Specifically, the proposal would add a conflict of interest provision in order to help ensure that decisions regarding the purchase, sale, and pledge of eligible obligations are made in the best interest of the credit union.

Today, the Department of Defense (DoD) published in the Federal Register a proposed rule to implement the consumer protections included in Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Defense Act), Public Law 109-364; 10 U.S.C. § 987. The proposed rule is intended to regulate the terms of consumer credit extended by creditors to active duty service members and their dependents.

On January 8, 2006, the Department of Housing and Urban Development (HUD) issued a proposed rule regarding home equity conversion mortgage (HECM) counseling. The proposed rule would establish testing standards to qualify individuals as HECM counselors, establish a roster of eligible HECM counselors, and provide for their removal for cause.

The proposed IRPS provides guidance to FICUs regarding the actions prohibited by the statute, and also contains procedures for applying for consent by the NCUA Board.

The proposed rule would prohibit seven credit card practices: (1) Unfair time constraints for consumers to make payments; (2) Unfair allocation of payments among balances with different interest rates; (3) Unfair application of increased APR to outstanding balances; (4) Unfair fees for exceeding the credit limit solely because of a hold placed on an account; (5) Unfair balance computation method; (6) Unfair financing of security deposits and fees for issuance or availability of credit; and (7) Deceptive firm offers of credit.

The NCUA Board recently approved an interim final rule amending its regulation that implements the Truth in Savings Act (TISA). This interim final rule establishes uniform standards for the electronic delivery of disclosures required by TISA and is substantially similar to the Federal Reserve Board’s recent interim final rule amending Regulation DD.

On April 19, 2001, the National Credit Union Administration (NCUA) approved a proposed rule that would revise NCUA’s regulations on nondiscrimination in advertising. The proposed rule is similar to the Federal Deposit Insurance Company’s rule and would give credit unions greater flexibility in giving notice of nondiscrimination.

The Federal Reserve Board has issued interim final rules establishing standards for the electronic delivery of disclosures under Regulations B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in Savings). Under the rules, financial institutions, creditors, lessors, and others may deliver disclosures electronically if they obtain consumers' consent in accordance with the Electronic Signatures in Global and National Commerce Act (the "E-Sign Act").

On March 8, 2001, the National Credit Union Administration (NCUA) approved a proposed rule on regulatory flexibility (RegFlex). This rule would permit credit unions with advanced levels of net worth and consistently strong examination ratings to be exempt, in whole or in part, from certain NCUA regulations.

On February 15, 2001, the National Credit Union Administration (NCUA) approved a proposed rule to amend Part 749, NCUA’s rule on vital records preservation. The proposal converts the regulation into a question-and-answer format and clarifies that records may be preserved in electronic form.

On February 15, 2001, the National Credit Union Administration (NCUA) approved a proposed rule to amend Part 712, the credit union service organization (CUSO) regulation. The proposal clarifies that the list of activities currently in the rule is illustrative and adds a provision encouraging federal credit unions to seek an advisory opinion on whether a proposed activity is authorized.