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.

These regulations were last updated twelve years ago to reflect changes in costs and practices. Now the Board is proposing to once again update the rules to reflect new changes in the costs and practices of data collection and dissemination.

NCUA is amending its share insurance rules to reflect Congress' recent action to increase temporarily the standard maximum share insurance amount (SMSIA) from $100,000 to $250,000 and increase coverage for custodial loan accounts.

Regulation E implements the Electronic Funds Transfers Act (Act), which establishes rights, liabilities, and responsibilities for participants involved in EFT systems. Covered transactions under the Act include transfers initiated through automated teller machines (ATM), point-of- sale (POS) terminals, automated clearinghouses (ACH), telephone bill-payment plans, and remote banking programs.

On July 30, 2008, Congress enacted the SAFE Act, as part of the Housing and Economic Recovery Act of 2008. See 12 U.S.C. 5101-5116. The SAFE Act mandates the creation of a nationwide licensing and/or registration system for mortgage loan originators. Under the Act, all States must provide for a licensing regime for mortgage loan originators within one year of enactment (or two years for States whose legislatures meet biennially) and individuals employed by a State-regulated institution are prohibited from engaging in the business of residential mortgage loan origination without first obtaining and maintaining a license and registration and obtaining a unique identifier (State licensing). Further, NCUA and the federal banking agencies must promulgate rules governing registration of mortgage loan originators of the institutions they regulate.

TILA was enacted for the purposes of providing meaningful disclosure of credit terms to enable consumers to compare credit terms available in the marketplace more readily and avoid uninformed use of credit, and to protect consumers against inaccurate and unfair credit billing. The disclosures under TILA and Regulation Z differ depending on whether the consumer credit is an open-end or a closed end loan.

The NCUA proposes to amend its Chartering Manual, which contains the agency's rules on community chartering and field of membership.

On December 13, 2001, the NCUA Board of Directors unanimously approved proposed amendments to NCUA's federal credit union employee benefits rule. The Board also requested comments on the proposed amendments. These changes seek to clarify the scope of the rule and to incorporate interpretations in a number of Legal Opinion Letters

The NCUA Board recently approved an interim final rule amending its regulation that implements the Truth in Savings Act (TISA). This interim final rule establishes uniform standards for the electronic delivery of disclosures required by TISA and is substantially similar to the Federal Reserve Board's recent interim final rule amending Regulation DD.

The Federal Reserve Board is requesting comments on Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

Based on the report by NCUA's Field of Membership Task Force on revisions to the chartering and field of membership manual (IRPS 99-1), NCUA has issued a proposed rule amending the manual.

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.