The National Credit Union Administration (NCUA) has issued a list of regulations for review under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), which requires federal financial institution regulators (except NCUA) to review their regulations once every 10 years to identify those that are outdated, unnecessary, unduly burdensome and then report to Congress any significant issues. 

Although the NCUA is not required to participate in this process, the agency elects to do so as a member of the Federal Financial Institutions Examination Council (FFIEC). This process is in addition to NCUA’s own schedule of reviewing one- third of their regulations every year.

Under EGRPRA, the agencies each divided their regulations into four sets of review. The current review is the fourth and final set for this decennial review. NCUA’s current EGRPRA list of regulations for review covers the categories of “Rules of Procedure” and “Safety and Soundness” (see list below).

“We encourage each credit union to review the list to determine if any of these regulations are ‘outdated, unnecessary, or unduly burdensome’,” said Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues. “This is your opportunity to comment and recommend changes that modernize or otherwise improve these regulations.”

Credit unions can submit comments directly to the NCUA via www.PowerComment.org by March 22. In addition, please provide any feedback on these regulations to SharonL@ccul.org by March 16 to help inform the Leagues’ comment letter.

Regulations up for review are:

Rules on Procedure

  • Liquidation (Involuntary or Voluntary)—12 CFR 709, 710
  • Uniform Rules of Practice and Procedure—12 CFR 747, Part A
  • Local Rules of Practice and Procedure—12 CFR 747, Parts B through J
  • Inflation Adjustment of Civil Money Penalties—12 CFR 747, Part K
  • Issuance, Review, and Enforcement of Orders Imposing Prompt Corrective Action—12 CFR 747, Parts L and M  

Rules on Safety and Soundness

  • Lending—12 CFR 701.21
  • Investment and Deposit Activities—12 CFR 703
  • Supervisory Committee Audit—12 CFR 715
  • Security Programs—12 CFR 748.0
  • Guidelines for safeguarding member information and responding to unauthorized access to member information—12 CFR 748, App. A and B
  • Records Preservation Program—12 CFR 749
  • Appraisals—12 CFR 722
  • Examination—12 CFR 741.1
  • Liquidity and Contingency Funding Plans—12 CFR 741.12
  • Regulations codified elsewhere in NCUA’s Regulations as applying to FCUs that also apply to federally insured state-chartered credit unions—12 CFR 741 , subpart B 
     

CFPB Findings—ChexSystems Reporting
Today, the Consumer Financial Protection Bureau (CFPB) issued a notice regarding their supervision efforts of banks and nonbanks in 2015. Of interest to credit unions is the CFPB’ assertion that they found inaccurate reporting to “checking account reporting companies” (e.g., ChexSystems). One example given was when consumers paid charged-off accounts in full, financial institutions would update their own records but fail to update and report the change in status with ChexSystems. The bureau notes, “Not updating an account to “paid in full” status could negatively affect a consumer’s attempt to open a new checking account.” This is a good reminder to credit unions to check your processes to ensure follow up reporting is being done correctly. You can review other examples related to consumer reporting of deposit accounts in the bureau’s Supervisory Highlights, Winter 2016. 

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