Compliance Blog

Written by Steve Van Beek

This morning, NCUA issued a final rule in the Federal Register that would fix numerous inaccurate citations.  The majority of the citations were inaccurate due to the transfer of regulatory authority to the CFPB in July 2011 and the subsequent republishing of the regulations by the CFPB in December 2011.

These incorrect citations where pointed out to NCUA in NAFCU's comment letter on July 23, 2012 (including a listing on the last page):

"Updating NCUA Regulations

NAFCU would like to take this opportunity to urge the NCUA to update its regulations by making technical changes to various incorrect references. For example, NCUA’s regulations are replete with incorrect references to Federal Reserve Board regulations that have been transferred to the Bureau of Consumer Financial Protection (CFPB). The NCUA should make these technical changes as quickly as possible, as incorrect references unnecessarily create confusion and difficulties with compliance.

To help facilitate with this endeavor, NAFCU has attached Appendix A to this comment letter, a list of incorrect references in NCUA’s regulations."

Additionally, our March 30, 2012 blog post was hopeful that NCUA would correct all these inaccurate citations and remove one headache from credit union compliance officers:

"Bonus:  Inside of 12 CFR 701.31 is a citation to Regulation B.  Unfortunately, it references 12 CFR 202.2(f) rather than the accurate citations of 12 CFR 1002.2(f).  While this seems minor it does cause confusion and unnecessary headaches and really should have been addressed during NCUA's Technical Amendments to Part 701.31.  

***

Hopefully NCUA's Annual Regulatory Review will include a thorough review of their regulations to ensure the citations accurately reflect the CFPB's authority over the consumer regulations."

We all abhor when regulators use cross-references.  But, when they do - it is better that they be accurate.  So, kudos to NCUA for getting this done within one year of when the regulations where republished by the CFPB.