Final Regulation Summaries

NCUA has issued a final rule implementing the registration requirements under the Secure and Fair Enforcement of Mortgage Licensing Act (SAFE Act) for employees of federally insured credit unions that act as mortgage loan originators as well as their credit unions.

NCUA's final rule follows an 18-month long rulemaking process that included an Advance Notice of Proposed Rulemaking, a Proposed Rulemaking, comments from the public and numerous town hall meetings. NCUA's final rule was issued in conjunction with its announcement of its plan regarding legacy assets at corporates.

On December 13, 2001, the NCUA Board of Directors unanimously approved a final rule to revise NCUA regulations regarding the limitation on compensation of Federal Credit Union (FCU) officials.

The Federal Reserve Board has issued a final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA).

NCUA has adopted a final leasing regulation, which updates and designates as a regulation Interpretive Ruling and Policy Statement (IRPS ) 83-3.

The major revisions to the existing rule affect capital, credit concentration limits, and credit risk.

The USA PATRIOT Act of 2001 mandated implementation of rules to reduce the barriers to information sharing among financial institutions for the purpose of combating terrorism and money laundering.

On April 24, 2003, the National Credit Union Administration (NCUA) Board approved a final rule to amend Part 701 of the NCUA Rules and Regulations, which permits a federal credit union to provide reasonable retirement benefits to its employees and officers. The amendments clarify the rule's scope and the investments a federal credit union may use to fund employee benefits.

On December 18, 2003, the National Credit Union Administration (NCUA) approved a final rule amending its share insurance rules. The amendments are intended to simplify and clarify NCUA's rules and to provide parity with the deposit insurance rules of the Federal Deposit Insurance Corporation (FDIC).

On June 8, 2004, the National Credit Union Administration (“NCUA”) announced its approval of proposed revisions amending NCUA's Investment and Deposits Activities Rule (Part 703) and Corporate Credit Unions Rule (Part 704).

On October 22, 2004, the Federal Reserve Board announced final amendments to Regulation J, which governs the Reserve Banks' collection of checks and other cash items.

Recently the National Credit Union Administration (NCUA) approved final interim rules that added a part 717 to its Rules and Regulations which implements section 411 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).

The National Credit Union Administration recently issued a final regulation under 12 C.F.R. Part 723, Member Business Loans.

On June 28, 2006, the National Credit Union Administration (NCUA) issued a final rule amending its rules regarding field of membership requirements and service to underserved areas.

Recently, the National Credit Union Administration issued a final rule revising its official sign indicating insured status.

Recently, the National Credit Union Administration (NCUA) issued a final rule regarding Federal Credit Union (FCU) Bylaws. The final rule reincorporates the FCU Bylaws into the NCUA regulations, as Appendix A to Part 701 of NCUA's regulation and clarifies NCUA's ability and discretion to use a range of enforcement authorities.

Recently, the Small Business Administration (SBA) issued a final rule regarding lender examination and review fees.

Recently, the NCUA issued a final rule to modify the definition of “net worth” that would apply to natural person credit unions for purposes of prompt corrective action (PCA). The modification would allow an acquiring credit union, in a merger of natural person credit unions, to combine the merging credit union's retained earnings with its own to determine the postmerger net worth.

The enactment of CAN-SPAM made certain types of electronic mailing practices illegal. CANSPAM prohibits sending commercial emails with false or misleading headers, “from” line information, or subject headings. It also requires that commercial emails allow a recipient to “opt out” of receiving future emails. CAN-SPAM further requires that commercial emails contain disclosures informing the recipient that the message is an advertisement or solicitation, the recipient may “opt out,” and a valid physical postal address of the sender.

In July of 2008, the Board approved final rules implementing the Home Ownership and Equity Protection Act (HOEPA). The rule required early Truth in Lending Act (TILA) disclosures providing a good faith estimate (GFE) of the cost of mortgage loans. The rule was not limited to purchase loans, but included all non-purchase closed-end loans secured by the borrower's principle dwelling, such as refinance loans. On the same day that rule was published, Congress passed the Mortgage Disclosure Improvement Act (MDIA). The MDIA codified much of the Board's July 2008 rule. However, the MDIA also went further, requiring the same disclosures for loans secured by second homes. Additionally, the MDIA required waiting periods between disclosures and consummation of the loan.