Regulatory Issues

We encourage you to send comments regarding these regulatory issues to Compliance Services.  Please reference the regulatory issue on which you are commenting in your e-mail message.  E-mail your comments to

Notice of Proposed Rulemaking – Voluntary Liquidation
The NCUA Board (Board) proposes to amend its voluntary liquidation regulation to reduce administrative burdens on voluntarily liquidating federal credit unions (FCUs) and recognize technological advances by: Permitting liquidating FCUs to publish required creditor notices in either electronic media or newspapers of general circulation; increasing the asset-size threshold for requiring multiple creditor notices; requiring that preliminary partial distributions to members not exceed the insured limit for any member share account; specifying when liquidating FCUs must determine member share balances for the purposes of distributions; and permitting liquidating FCUs to distribute member share payouts either by wire or other electronic means or by mail or personal delivery. Comments must be received on or before May 2, 2014.
[posted: 03/04/14]

NCUA Proposal on Prompt Corrective Action-Risk Based Capital
The NCUA Board (Board) is proposing to amend NCUA’s regulations regarding prompt corrective action (PCA) to restructure the part, and make various revisions, including replacing the agency’s current risk-based net worth requirements with new risk-based capital requirements for federally insured ‘‘natural person’’ credit unions. The proposed risk-based capital requirements would be more consistent with NCUA’s risk-based capital measure for corporate credit unions and the regulatory risk-based capital measures used by the Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve, and Office of the Comptroller of Currency (Other Federal Banking Regulatory Agencies). In addition, the proposed revisions would revise the risk-weights for many of NCUA’s current asset classifications; require higher minimum levels of capital for federally insured natural person credit unions with concentrations of assets in real estate loans, member business loans (MBLs) or higher levels of delinquent loans; and set forth the process for NCUA to require an individual federally insured natural person credit union to hold higher levels of risk-based capital to address unique supervisory concerns raised by NCUA. The proposed revisions would also eliminate several of NCUA’s provisions, including provisions relating to regular reserve accounts, risk-mitigation credits, and alternative risk-weights. Comments must be received by May 28, 2014.
[posted: 02/27/14]

Request for Information Regarding the Mortgage Closing Process
This notice requests information from the public about mortgage closing. Specifically, the Consumer Financial Protection Bureau (CFPB) seeks information on key consumer “pain points” associated with mortgage closing and how those pain points might be addressed by market innovations and technology. The CFPB seeks to encourage the development of a more streamlined, efficient, and educational closing process as the mortgage industry increases its usage of technology, electronic signatures, and paperless processes. The next phase of CFPB's Know Before You Owe initiative aims to identify ways to improve the mortgage closing process for consumers. This project will encourage interventions that increase consumer knowledge, understanding, and confidence at closing. This notice seeks information from market participants, consumers, and other stakeholders who work closely with consumers. The information will inform the CFPB's understanding of what consumers find most problematic about the current closing process and inform the CFPB's vision for an improved closing experience. Submit comments on or before February 7, 2014.
[posted: 01/06/14]

Proposed Rule – Capital Planning and Stress Testing
NCUA proposes to conduct annual stress tests of federally insured credit unions (FICUs) with assets of $10 billion or more. NCUA further proposes to require those credit unions to develop and maintain capital plans. Comments must be received on or before December 31, 2013.
[posted: 11/01/13]

Joint Notice of Proposed Rulemaking – Loans in Areas Having Special Flood Hazards
The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration (FCA), and the National Credit Union Administration (NCUA) (collectively, the Agencies) are proposing to amend their regulations regarding loans in areas having special flood hazards to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. Specifically, the proposal would establish requirements with respect to the escrow of flood insurance payments, the acceptance of private flood insurance coverage, and the force-placement of flood insurance. The proposal also would clarify the Agencies' flood insurance regulations with respect to other amendments made by the Act and make technical corrections. Furthermore, the OCC and the FDIC are proposing to integrate their flood insurance regulations for national banks and Federal savings associations and for State non-member banks and State savings associations, respectively. Comments must be received on or before December 10, 2013, except that comments on the Paperwork Reduction Act analysis in part V of the SUPPLEMENTARY INFORMATION must be received on or before December 30, 2013.
[posted: 10/30/13]