Proposed Regulations

NACHA Rules Work Group #11, Authorization Issues, recently issued a request for comment on a proposed rule amendment that would modify the authorization requirements for the collection of service fees relating to Re-presented Check (RCK) entries.

On June 20, 2002, the NCUA Board of Directors unanimously approved a proposed rule that seeks comments on several issues in Part 704, the rule governing corporate credit unions (corporates). The proposed rule follows two earlier Advance Notices of Proposed Rulemaking (ANPRs), issued in 1999 and 2000, and a proposed rule issued September 21, 2001 seeking similar information.

On February 7, 2002, the Federal Reserve Board published proposed amendments to Regulation C, which implements the Home Mortgage Disclosure Act. The Board requests public comment on: (1) the appropriate threshold for collecting price data on higher cost loans; (2) a proposal to require lenders to ask telephone applicants their race, ethnicity, and sex; and (3) a proposal to require lenders to report lien status for applications and originated loans.

Recently, NCUA published proposed rules regarding share insurance, which are intended to simplify and clarify current regulations and provide parity with the deposit insurance rules of the Federal Deposit Insurance Corporation.

The Internal Revenue Service (IRS) has issued a notice of proposed rulemaking containing proposed amendments to income tax regulations promulgated under section 401(a) of the Internal Revenue Code.

Recently, the National Credit Union Administration (NCUA) published a request for comments and suggestions on ways it can identify and reduce regulatory burdens with respect to share account – deposit relationships and miscellaneous consumer rules that may be outdated, unnecessary, or unduly burdensome.

Recently, the Federal Reserve Board (Board) proposed guidance on overdraft protection programs, amendments to Regulation DD, and additions to the staff commentary to the Regulation DD. Both the guidance and the amendments are concerned with the current disclosures and practices by financial institutions with respect to the treatment of overdrafts.

Recently, NACHA—The Electronics Payments Association (NACHA) issued a proposed rule to modify the provisions of the Operating Rules to allow unauthorized entries that are transmitted to consumer accounts and incorrectly bear corporate Standard Entry Class (SEC) Codes (CCD, CTX, or CBR) to be returned within a sixty-day time frame.

Recently, the National Credit Union Administration (NCUA) approved an interim final rule to amend 12 C.F.R. Part 707 and its official staff interpretation. Part 707 implements the Truth in Savings Act (TISA).

The National Credit Union Administration (NCUA) has published for comment proposed changes to the rule on uninsured secondary capital accounts. The proposed changes include a new subsection allowing low- income designated credit unions to redeem discounted secondary capital under certain conditions, and eliminating the existing restriction on redemption in section 701.34(b).

National Credit Union Administration (NCUA) and other financial regulators, issued a proposed advisory regarding the unsafe and unsound use of limitation of liability provisions and certain alternative dispute resolutions in external audit engagement letters. The proposal advises the credit union's board of directors, audit committee and management that they should not enter any agreement that contains external auditor limitation of liability provisions with respect to financial statement audits.

The Board of Governors of the Federal Reserve System (Board) has issued an advance notice of proposed rulemaking to amend 12 C.F.R. § 226, “Regulation Z,” which implements the Truth in Lending Act. The proposal seeks to begin a review of open-end credit rules in the following three categories: (1) the format of open-end credit disclosures; (2) the content of the disclosures; and (3) the substantive protections provided by the regulation.

On June 28, 2006, NCUA published a proposed rule to amend its rules and regulations regarding the conversion of insured credit unions to mutual savings banks or mutual savings associations. The revisions are intended to improve the information available to members and the board of directors. The proposed rule provides for revised disclosures, revised voting procedures, procedures to facilitate communications among members, and procedures for members to provide their comments to directors before the credit union board votes on a conversion plan.

Recently, the National Credit Union Administration (NCUA) issued proposed amendments to its rules regarding field of membership requirements and service to underserved areas.

This review is in connection with the agency's larger initiative to maintain the competitiveness of United States capital markets.

Recently, the Board of Governors of the Federal Reserve System (Board) published in the Federal Register a notice of public hearing and request for public comment on the home equity lending market.

Recently, the National Credit Union Administration (NCUA), along with the other federal financial institutions regulators (collectively, the Agencies), issued a joint proposed rule to amend its rules implementing the privacy provisions of the Gramm- Leach-Bliley Act (GLB Act). The Agencies were required by section 728 of the Financial Services Regulatory Relief Act of 2006 (Regulatory Relief Act) to propose a safe harbor model privacy form that financial institutions may use to provide disclosures under the Agencies' privacy rules.

Recently, the Board of Governors of the Federal Reserve System (Board) issued proposed amendments to Regulation D and Regulation I. The amendments include two substantive changes from existing law along with several editorial changes and amendments for clarification.

Recently, the National Credit Union Administration (NCUA) issued a proposed rule to amend its regulations governing Freedom of Information Act (FOIA) requests. The proposed rule would make several housekeeping changes, but also clarify where requests must be sent, how requests must be addressed, and what information must be included in a request.

NCUA's longstanding policy is to review, on a rolling basis, a third of its regulations each year in order to update, clarify, and simplify existing rules and eliminate redundant or unnecessary provisions. See IRPS 87-2. The proposal is a product of the agency's 2007 regulatory review.