Final Regulation Summaries

At a special meeting on May 8, the NCUA Board approved a final rule on privacy of consumer financial information.

On October 26, 2001, President Bush signed into law the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001.

On January 23, 2002, the Federal Reserve Board approved amendments to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

On May 22, 2003, the National Credit Union Administration (NCUA) Board approved a final rule IRPS 03-2, Change in Definition of Small Credit Union.

On December 18, 2003, the National Credit Union Administration (NCUA) approved a final rule amending section 701.22, the loan participation rule. The amendments are intended to update and clarify the definitions of certain terms used in the rule.

On July 19, 2004, the National Credit Union Administration announced its approval of proposed revisions amending its regulation pertaining to the Community Development Revolving Loan Program for Credit Unions to permit student credit unions to participate in the program.

The National Credit Union Administration (NCUA) recently amended its Rules and Regulations to ensure the proper disposal of consumer information derived from consumer reports in compliance with the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).

On April 14, 2005, the National Credit Union Administration (NCUA) approved a final rule and guidance amending 12 CFR Part 748.

The regulation is an amendment to the previously existing rule and clarifies when a federally insured credit union must seek approval from the NCUA Board for transfers of assets or accounts.

Recently, the National Credit Union Administration (NCUA) issued a final rule regarding third party servicing of indirect vehicle loans.

Recently, the Federal Reserve Board (Board) issued a final rule amending Regulation E, which implements the Electronic Fund Transfers Act, and its official staff commentary.

Recently, the National Credit Union Administration (NCUA) issued a final rule regarding member inspection of credit union books, records, and minutes. The regulation standardizes and clarifies existing member access rights.

Recently, the Internal Revenue Service (IRS) published a final regulation regarding the application of Section 409A of the Internal Revenue Code (IRC) to nonqualified deferred compensation plans.

The final rule amends the definition of “low-income members” to use median family income (MFI) to determine if a credit union qualifies for a low-income designation and eligible for assistance from the Community Development Revolving Loan Fund (CDRLF). Under the final rule, the use of different income standards is eliminated. The rule also aligns the criteria for a low-income credit union (LICU) designation with the criteria for the addition of an underserved area to a federal credit union (FCU) field of membership and certification as a Community Development Financial Institution (CDFI).

Recently, the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Fed), Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the FFIEC Agencies) issued “Illustrations of Consumer Information for Hybrid Adjustable Rate Mortgage Products” (“Illustrations”) in order to supplement the interagency subprime mortgage guidance issued by the same five agencies last year. The illustrations, though not mandatory, may be adopted in full or in part by credit unions to educate potential borrowers on the potential pitfalls that accompany the benefits of hybrid ARM products.

The final rule makes two substantive changes to the existing Regulation D. First, the rule authorizes up to six “convenient” transactions from a savings account to a third party. Previously, account holders were permitted to make six “convenient” transfers per month from their savings accounts; however, only three such transactions could be payable to a third party. Second, the rule amends the existing Regulation D.

On July 26, 2001, the NCUA Board of Directors unanimously approved a final rule amending part 721 of NCUA's Rules and Regulations.

The Federal Reserve Board had adopted final amendments to Regulation Z revising the disclosure requirements for credit and charge card solicitations and applications.

NCUA has adopted an amendment to Parts 724 and 725 that will allow federal credit unions in the Commonwealth of Puerto Rico and U.S. territories and possessions to act as trustees or custodians of individual retirement accounts. The amendments also clarify that such accounts will be separately insured.