Proposed Regulations

In 2003, the FACT Act was signed into law to amend the Fair Credit Reporting Act (FCRA) to enhance the ability of consumers to combat identity theft, increase the accuracy of consumer report, and allow consumers to exercise greater control regarding the type and amount of solicitations they receive. Among other things, it addressed risk-based pricing, the practice of setting and adjusting the price and other terms of credit offered or extended to a particular consumer to reflect the risk of nonpayment by the consumer.

Recently, the National Credit Union Association (NCUA) issued an interim final rule regarding its share insurance rules for revocable trust accounts. The interim rule was issued just days before the enactment of the Emergency Economic Stabilization Act of 2008, by which Congress increased share insurance coverage of accounts covered from $100,000 to $250,000. Thus, the effect of the increase in coverage is not reflected in the interim final rule; however, by operation of law, coverage will generally henceforth be up to $250,000 per account beneficiary (maximum of $1.25 million per account) until December 31, 2009. The amount will revert back to $100,000 per beneficiary (maximum of $500,000 per account) unless Congress amends the expiration date.

Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the NCUA and the banking regulatory agencies are required to prescribe real estate appraisal standards in connection with “federally related transactions,” which are generally defined as transactions that the Agencies regulate. See Pub. L. 101-73, 103 Stat. 183 (1989). The standards are required to be in accordance with generally accepted uniform appraisal standard promulgated by the Appraisal Standards Boards of the Appraisal Foundation (Appraisal Board).

Congress enacted TILA to regulate certain credit practices and promote the informed use of consumer credit by requiring uniform disclosures about its costs and terms. Under TILA section 128, creditors must provide TILA disclosures to consumers in writing before consummation of certain closed-end credit transactions. Exemptions are provided for a limited number of transactions.

The rule requires financial institutions to adopt reasonable procedures to ensure that periodic statements are mailed to consumers at least 21 days before the payment is due. Notably, this 21 day requirement applies to credit cards and “all open-end consumer credit plans.”

The NACHA Operating Rules (Rules) currently require credit unions to make adjustment entries within 60 days after the settlement date. This has proven difficult to meet in some cases where a claim of unauthorized entry is made within the allowable period of 60 days from the transmittal showing the unauthorized transaction.

On October 18, 2001, the NCUA Board approved an advance notice of proposed rulemaking (ANPR) on part 703, the regulation governing federal credit union investments. NCUA is soliciting public comment on whether it should revise its investment rules and has identified provisions that may warrant clarification or revision.

The Federal Reserve Board has issued interim final rules establishing standards for the electronic delivery of disclosures under Regulations B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in Savings).

On October 19, 2000, the NCUA Board unanimously approved a proposed Interpretive Ruling and Policy Statement (IRPS) on the Central Liquidity Facility advance policy. The policy statement is intended to clarify the role of the CLF and the circumstances in which the CLF will approve a request for an advance

The Financial Accounting Standards Board (FASB) has released for public comment its preliminary views on the reporting at fair value of financial instruments and certain related assets and liabilities.

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).