Links in “Proposals, Requests, & Comments”

At yesterday’s meeting, the NCUA board voted unanimously to approve a proposed rule to eliminate the 5% cap on investments a federal credit union can make in fixed assets.  The proposed rule also eliminates the 30-month partial occupancy waiver process in favor of just a 6-year occupancy rule.  Comments will be due within 30 days of publication in the Federal Register. [3/20/15]

A new House bill would revise the definition of member business loans to exclude loans for the purchase of one-to-four unit, non-owner occupied residential buildings.  This would create parity with the rule for banks as banks are permitted to classify these types of loans as residential real estate loans. [3/19/15]

The NCUA Board approved a proposed rule (Part 791) to update the definition of a “small entity” from $50 million to $100 million in an effort to alleviate regulatory burdens associated with rules such as interest rate risk, liquidity and risk-based capital as well as revising the examination process for approximately 77% of all NCUA insured CUs. [2/20/2015]

A series of credit union and bank executives told a Congressional committee that the CFPB would be more effective if it was governed by a 5-member commission, similar to the governance structure of the Federal Reserve Board. A board or commission structure would require that an agenda be released before meetings and could allow for a more sensible and balanced approach to regulation. [2/13/15]

A bill has been introduced in the Senate that would allow financial institutions that do not share personal information with unaffiliated third parties to forego sending annual privacy notices unless there has been a change in policy. The credit union trade associations have argued that sending the annual notice only when changes have occurred will make the notices more meaningful to consumers. [2/11/15]

At a town hall meeting with NCUA Chair Debbie Matz, CFPB Director Richard Cordray said that they are not planning to prohibit ODP fees as part of a proposed rule about overdraft protection practices. Cordray added they are still looking at the data and comments in order to determine where further restrictions may be needed in order to protect consumers. [2/11/15]

The CFPB recently issued a proposed rule that would, among other things, expand and modify the definition of a “small creditor.” See how these proposed changes might benefit your credit union. [2/10/15]

FEMA looks to stakeholders for comments on new standards related to future federal funding (investments) in floodplains. These include using the best counteracting data and methods and ensuring minimum levels are above floodplains depending on risk factors. Comment period ends April 6, 2015. [2/6/15]

The OCC spoke up regarding the regulatory burdens placed on smaller banks and has come up with three proposals, which you can read about here. [2/5/15]

CFPB recently proposed amendments to Reg. Z governing mortgages that would affect the definition of "small creditors" and the term "rural." Here's a rundown of what the CFPB has put on the table. [2/4/15]