Proposed Regulations

Recently, NACHA's Rules Work Group #32 published proposed amendments related to ACH data security requirements. The proposed amendments are intended to strengthen ACH security for transactions occurring via Unsecured Electronic Networks.

The proposal is in response to increasing costs for managing risk in the ACH Network due to the rise in the number of unauthorized debit entries.

The Securities and Exchange Commission (SEC) has issued a proposed rule providing three exemptions for credit unions from the definitions of “broker” and “dealer” under the Securities Exchange Act of 1934.

Recently, the National Credit Union Administration (NCUA) issued a proposed rule requiring the proper disposal of consumer information in accordance with the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act.

The proposal would add a model form to Regulation V that financial institutions may use to comply with the notice requirement relating to furnishing negative information contained in sectio n 217 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).

Recently, the Federal Reserve Board issued for public comment an advance notice of proposed rulemaking (ANPR) concerning open-end credit rules (Regulation Z). The ANPR solicits public comments on how the Board should implement amendments to TILA made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The amendments deal mostly with open-end credit accounts and require new disclosures on periodic statements and on credit card applications and solicitations.

The Financial Accounting Standards Board has issued an exposure draft relative to the accounting treatment of business combinations, including combinations between credit unions.

On March 27, 2007, the National Credit Union Administration (NCUA) published a proposed rule related to federally insured credit unions' obligation to maintain a records preservation program. The proposed rule amends Parts 748 and 749 of the NCUA's Rules and Regulations.

On November 22, 2006, the National Credit Union Administration (NCUA) issued an interim final rule on share insurance appeals and clarification of NCUA Board's enforcement authority. The interim final rule implements amendments to the Federal Credit Union Act made by the Financial Services Regulatory Relief Act of 2006 (Reg Relief Act).

Recently, the Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board (Board) (collectively, the Agencies) jointly issued for public comment an advance notice of proposed rulemaking (ANPR) concerning the threshold for the requirement to collect, retain, and transmit information on funds transfers and transmittals of funds in amounts of $3,000 or more.

Recently, the National Credit Union Administration (NCUA), along with the federal banking regulators (the Agencies), issued proposed interagency guidance on nontraditional mortgage loan products to assist financial institutions in ensuring that their risk management and consumer protection practices adequately address the risks associated with their credit activities.

Recently, the Department of the Treasury and the Board of Governors of the Federal Reserve System issued a proposed joint rule to implement the Unlawful Internet Gambling Enforcement Act of 2006 (the Act). The Act prohibits gambling businesses from accepting payments in connection with unlawful Internet gambling.

Today, the National Credit Union Administration (NCUA), published in the Federal Register for public comment proposed amendments to its chartering and field of membership manual to revise and update its community chartering policies. The proposed changes would clarify the documentation requirements for the “local community” standard and add a public notice and comment procedure for certain types of community charter applications involving multiple political jurisdictions.

National Credit Union Administration (NCUA), along with the other financial regulators (the Agencies), issued for public comment a proposed Statement on Subprime Mortgage Lending. The proposal addresses emerging issues and questions relating to certain subprime mortgage lending practices, including certain adjustable-rate mortgage (ARM) lending products.

Recently, the National Credit Union Administration (NCUA) issued for public comment an advance notice of proposed rulemaking (ANPR) regarding mergers, conversions from credit union charter, and account insurance termination. See 12 CFR Parts 708a and 708b.

Recently, National Credit Union Administration (NCUA) issued proposed amendments to Part 740 of its Rules and Regulations. The proposed rule would revise the requirements for use of the official insurance sign and official advertising statement to allow insured credit unions to use the basic form of the official advertising statement, a shortened form alone, or the official sign alone in advertisements. This is intended to provide more flexibility in complying with the advertising rule.

The proposed rule would expand the requirements to serve “underserved areas,” but the requirements would conform to those prescribed by the Community Development Financial Institutions Fund.

The current three year time period during which a Reg Flex FCU must partially occupy acquired property, absent a waiver, would be extended to six years with respect to acquisition of unimproved land.

Recently, NACHA – The Electronic Payments Association (NACHA), issued two proposals to amend the NACHA Operating Rules (Rules). The proposals are part of NACHA's comprehensive risk management strategy, which began with the proposal and finalization of the recently issued Network Enforcement Rule.

Recently, the National Credit Union Administration (NCUA) issued a proposed rule regarding credit union reporting requirements. Under the proposed rule, credit unions would be required to submit reports via a web-based system.

The NCUA, along with the other banking regulatory agencies, seeks comment on whether the agencies should provide guidelines to determine when those who furnish information to consumer reporting agencies (CRA) should be required to include the account opening date.