Proposed Regulations

The interim final rule amends the definition of “low-risk assets” in NCUA's PCA regulations to include “debt instruments unconditionally guaranteed by the National Credit Union Administration,” such as the NCUA Guaranteed Notes (NGNs) that NCUA, through a trust, is currently offering to public investors.

Mortgage lenders are required to disclose, in a tabular format, the contract interest rate together with corresponding monthly payment, including any escrows for taxes and property and/or mortgage insurance.

The proposal would have two significant effects on depository institutions that wire funds across the border. First, depository institutions would have an affirmative duty to report all CBEFTs to FinCEN. Currently, institutions must make that information available upon a valid legal request from the Government, but there is no duty to report. Second, financial institutions would be required to file an annual report with a list of the TIN for each accountholder who transmitted or received a CBETF during that calendar year.

The proposal requires penalty fees to be “reasonable and proportional” to the violation, which would severely restrict the size of penalty fees.

The proposal would make significant changes to reverse mortgage products and the borrower's right to rescind. It would also make several other changes to disclosures, advertising and other matters regarding home-secured credit.

Under the proposal, applicants must use specific forms and provide a range of information regarding the business plan of the prospective corporate, as well as biographical information about the directors and senior management.

The request for comment contains proposed fees that credit unions would pay for initial registration and renewal, and when a change of employment occurs.

Generally, a FICU that is insolvent, in conservatorship, rated CAMEL 4 or 5, or in an otherwise troubled condition would be prohibited from making golden parachute payments.

In January 2008, the National Credit Union Administration (NCUA) issued an Advance Notice of Proposed Rulemaking (ANPR) regarding fiduciary duties at federal credit unions, mergers of credit unions and conversions of credit unions to banks and insurance conversions.

The ANPR concerns RESPA's prohibition against requiring the use of affiliated businesses for settlement services.

This interim final rule is a technical clarification to Part 701 regarding the definition of “lowincome members”.

The Treasury, Railroad Retirement Board, Social Security Administration and Department of Veterans Affairs (VA) issued this proposal to provide guidance to financial institutions that receive a garnishment order for an account which holds exempt federal benefit payments.

The proposal would expand the scope of the Telephone-Initiated Entry (TEL) application to permit its use for recurring consumer transactions.

The proposal would eliminate four exemptions that currently exist for credit unions that qualify for the NCUA's Regulatory Flexibility (RegFlex) program.

Currently, under Regulation Z, a higher-priced mortgage loan is a consumer credit transaction secured by the consumer's principal dwelling with an APR that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points for loans secured by a first lien on a dwelling, or by 3.5 or more percentage points for loans secured by a subordinate lien on a dwelling.

The NCUA proposed to amend the general lending rule to allow credit unions to offer short term, small amount loans (STS loans) as an alternative to pay day lenders.

On December 13, 2001, the NCUA Board approved an interim final rule amending the chartering and field of membership manual. The amendment consists of two revisions: first, an existing community chartered credit union need not document how it plans to serve the entire community and second, the definition of an investment area has been updated.

The Federal Reserve Board has issued a request for comment on how the Board's regulations may be adapted to the online delivery of financial services. This request for comment was initiated due to the Gramm-Leach-Bliley Act of 1999, which requires federal banking regulators to conduct a study of regulations and submit a report about adapting existing legislative and regulatory requirements to online banking and lending.

On November 16, 2000, the NCUA Board of Directors unanimously approved an advance notice of proposed rulemaking (ANPR) that seeks comments on several issues in Part 704, the rule governing corporate credit unions (corporates).

The Federal Reserve Board is proposing amendments to Regulation Z revising the disclosure requirements for credit and charge card solicitations and applications. The proposed revisions would implement a type size requirement for APR disclosures and strictly construe the requirement that disclosures be “clear and conspicuous.”