Proposed Regulations

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 Federal Reserve Board (Board) proposed a rule that would amend subpart A of Regulation J to provide for the rights and obligations of sending banks, paying banks, returning banks, and Reserve Banks in connection with collection of substitute checks and items that have been converted to electronic form.

NCUA is issuing this proposed rule so that FCUs and their members can take advantage of the authority granted in the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Medicare Act).

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 lending-related consumer protection rules that may be outdated, unnecessary, or unduly burdensome.

The National Credit Union Administration (NCUA) has proposed a change to its rule regarding financial and statistical reports filed by all federally insured credit unions. The proposal would eliminate the requirement that federally insured credit unions with assets of less than ten million dollars file alternate Form NCUA 5300SF, and instead require all federally insured credit unions, regardless of size, to file revised Form NCUA 5300 every quarter.

The National Credit Union Administration (NCUA) has published for comment proposed amendments to the Federal Credit Union (FCU) Bylaws. Among other things, the proposed changes include revisions to: annual meeting requirements, requirements for calling special meetings, the required posting of monthly financial statements, and election requirements and procedures.