Links in “Proposals, Requests, & Comments”

ICBA applauds the CFPB for proposed changes to qualified mortgage rules to allow community banks greater flexibility. The changes include increasing the threshold for the "small creditor" designation from 500 first-lien mortgage loans per year to 2,000. The definition of "rural" was also expanded. ABA chimes in with its support to here. [1/30/15]

Currently, student loan debt cannot be discharged, even in a bankruptcy. The Discharge Student Loans in Bankruptcy Act would change that. [1/27/15]

It looks like the CFPB is planning to come out with a proposed rule on overdraft protection by summer of this year. It is anticipated that the new rule may include an expansion of opt-out rights to overdrafts created by check and ACH transactions. [1/23/15]

CUNA and NCUA have both obtained legal opinions concerning NCUA’s authority under the Federal Credit Union Act to establish a tiered risk-based capital system. The problem is that the two opinions reach opposite conclusions. In addition, NCUA’s claim that the revised rule will only adversely affect 19 credit unions—versus the 199 credit unions adversely impacted by the original proposed rule—begs the question of whether a risk-based capital rule is really necessary. [1/23/15]

The CFPB’s proposed rule on prepaid accounts is more complex and broader in scope than you may realize. Get the facts to determine how the proposed rule may impact your operations before you prepare your comments, which are due by March 23. [1/22/15]

NAFCU is sponsoring a free webinar for both members and nonmembers on Friday, January 23^rd from 1:00 to 2:30 pm EST that will feature Larry Fazio, NCUA’s Director of Examination and Insurance, discussing the revised risk-based capital proposal. Fazio is NCUA’s chief architect of the new proposed rule. [1/20/15]

Many commenters to the first proposed RBC rule claimed that the Federal Credit Union Act does not afford NCUA the authority to establish a two-tiered, risk-based net worth standard. NCUA Chair Debbie Matz has countered these concerns by stating that the agency obtained an outside legal opinion before proceeding with the revised proposal. [1/19/15]

The definition of "private information" that would trigger customer notification requirements if a breach is discovered would expand to include email addresses, passwords, and medical and health insurance information. If approved, the New York law would also require companies that collect this information to have security measures in place to protect this data. [1/19/15]

The NCUA Board has approved a revised risk-based capital proposed rule. While not ideal, it is an improvement over the original proposed rule. Here’s what you need to know about the revisions and the other actions taken at yesterday’s board meeting. [1/16/15]

While CUNA and NAFCU praise NCUA for incorporating many of their recommendations into the revised risk-based capital proposal, they say that given the healthy capital ratios across the industry, the millions of dollars it will cost to implement the RBC rule just aren’t warranted. [1/16/15]