CUNA Regulatory Comment Call

February 1, 2007

EXECUTIVE SUMMARY

• NCUA has published its 2007 Regulatory Review List, which includes the regulations the Board has scheduled to review this year.
• NCUA has a policy of continually reviewing its regulations to determine whether they should be updated, clarified, simplified, or eliminated. Every year, NCUA examines one-third of its regulations as part of this annual rule review process.
• NCUA’s Office of General Counsel maintains the schedule that identifies the agency regulations up for review each year. The agency provides notice to the public of those regulations under review so credit unions and other interested parties have an opportunity to comment.
• NCUA will review the following regulations in 2007:
• Management Official Interlocks (Part 711);
• Credit Union Service Organizations (CUSOs) (Part 712);
• Fidelity Bond and Insurance Coverage for Federal Credit Unions (Part 713);
• Leasing (Part 714);
• Supervisory Committee Audits and Verifications (Part 715);
• Privacy of Consumer Financial Information (Part 716);
• Fair Credit Reporting (Part 717);
• Incidental Powers (Part 721);
• Appraisals (Part 722);
• Member Business Loans (Part 723);
• Trustees and Custodians of Pension Plans (Part 724);
• Central Liquidity Facility (Part 725);
• Advertising (Part 740);
• Requirements for Insurance (Part 741);
• Regulatory Flexibility Program (Part 742);
• Share Insurance (Part 745); and
• Administrative Actions, Adjudicative Hearings, Rules of Practice and Procedure, and Investigations (Part 747).
• Comments are due to NCUA by August 1, 2007. CUNA is in constant communication with NCUA staff and can bring issues to their attention throughout the year. Please review the regulations listed above at your earliest opportunity and let us know of particular operational or compliance problems associated with any of them. An example of feedback we have already received involves Part 740, Accuracy of Advertising and Notice of Insured Status – specifically Section 740.4(c). In the past, the regulation stated that at teller stations serving as shared service center branches, the credit union needed to post near the official share insurance sign the names of the credit unions being served that were NOT federally insured. At some point this regulation was changed so it requires a listing of ALL credit unions serviced by the facility that ARE federally insured. Since a credit union may now service a couple of thousand other federally insured credit unions, this requirement is no longer workable so the regulation needs to be changed. If there are issues with other NCUA regulations, please let us know about those also. We can bring those issues to NCUA’s attention prior to August 1. Please send your comments to CUNA by July 13, 2007.
• Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Deputy General Counsel Mary Dunn at mdunn@cuna.com or to Senior Regulatory Counsel Catherine Orr at corr@cuna.com; or mail them to Mary or Catherine in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, 6th Floor - South Building, Washington, DC 20004. You may also contact us at 800-356-9655, ext. 6743, if you would like a copy of the Regulatory Review List, or you may access it at the following Internet address:

  http://www.ncua.gov/news/press_releases/2007/MR07-0117.htm

1. Are there powers which you would like to see added to NCUA’s Incidental Powers rule?
   
   Yes____ No___
   
   
   If yes, what are those powers?
   
   

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2. Are there additional RegFlex exemptions, such as including as exemptions the provisions that may be waived for member business loans, that you would suggest?
   
   Yes____ No___
   
   
   If yes, please explain the exemptions you would recommend.
   
   

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3. Are there provisions in the member business loan rule (MBL) that could be revised to further facilitate member business lending? For example, some restrictions in the rule -- including loan to value ratios, aggregate construction and development loan limits and minimum borrower equity requirements for such loans are not specifically prescribed by statute. Rather than including these provisions in the rule itself, credit unions could address them in their required written policies, which are subject to review by their examiner.
   
   Yes____ No___
   
   
   If yes, how could NCUA more fully use its authority in this area to assist credit unions?
   
   

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4. Do you have concerns regarding NCUA’s regulations implementing the Fair and Accurate Credit Transactions (FACT) Act?
   
   Yes____ No___
   
   
   If yes, what are those concerns?
   
   

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5. Are there ways in which the agency’s privacy regulations could be revised to alleviate the burden associated with privacy notices?
   
   Yes____ No___
   
   
   If yes, please explain.
   
   

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6. Other comments?
   
   

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