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NAFCU details CFPB, NCUA proposals in Reg Alerts
NAFCU sent member credit unions two Regulatory Alerts Monday, one on the CFPB’s notice of proposed rulemaking (NPRM) to implement section 1033 of the Dodd-Frank Act and the other on the NCUA’s proposed rule to amend the agency’s regulations governing share insurance coverage for revocable and irrevocable trusts.
Regarding the NCUA’s proposal, NAFCU highlighted:
- the proposal would remove the need to distinguish between revocable and irrevocable trusts when calculating share insurance coverage;
- share insurance coverage will be calculated by aggregating all accounts from the same grantor and allocating $250,000 of coverage per eligible beneficiary for up to five beneficiaries;
- the proposed rule would provide consistent share insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender; and
- the proposed rule would provide more flexible recordkeeping requirements to allow the NCUA to look to records held in the normal course of business when determining insurance coverage.
Comments to NAFCU are due Dec. 5 and can be submitted via the Regulatory Alert; comments are due to the NCUA Dec. 26.
Regarding the bureau’s 1033 proposal, NAFCU highlighted that the NPRM:
- would require credit unions and other “covered data providers” to make certain data relating to consumers’ transactions and accounts available to consumers and authorized third parties;
- would establish obligations for third parties accessing a consumer’s data, including privacy protections for that data; and
- would provide basic standards and disclosure requirements for data access.
Last week, NAFCU and other financial trade organizations called on the bureau to extend the comment period from 70 days to 90 days. Comments on the proposal are due to NAFCU Dec. 1; comments are due to the CFPB Dec. 29.
Both Regulatory Alerts outline four questions for credit unions to consider in their feedback. NAFCU will continue to engage with both the CFPB and the NCUA to ensure credit unions are not overly burdened by regulations.