The Federal Reserve Board on May 31 announced final amendments to the check collection and return provisions in Regulation CC. The changes reflect the evolution of the nation’s check collection system from a paper-based system to one that is now largely electronic-based.
The amendments create a framework for electronic check collection and return, and create new warranties for electronic checks. The board is also requesting comment on proposed language amending Regulation CC’s existing liability provisions to include a presumption that a substitute or electronic check was altered instead of forged in certain cases of doubt.
The amendments will become effective on July 1, 2018. Comments are due within 60 days of publication in the Federal Register.
To learn more about the amendments, click here.
CFPB to evaluate Ability-to-Repay/Qualified Mortgage rule
The Consumer Financial Protection Bureau on May 25 released it plan to assess the effectiveness of the Ability-to-Repay/Qualified Mortgage rule. The assessment is required by section 1022(d) of the Dodd-Frank Act. The bureau is asking the public to comment on the plan, to suggest sources of data, and to provide information that would help with the assessment.
Comments on the notice of assessment must be received by July 31.
To learn more, click here.
Credit unions
Proposed rule would increase transparency about credit union mergers
Federally insured credit unions who are seeking voluntary mergers would face new notification and disclosure requirements under a proposed rule approved by the National Credit Union Administration board.
According to a NCUA news release, the proposed rule would:
• Increase the required time for notice to members before a merger vote to at least 45 days;
• Require the merging credit unions to disclose all merger-related compensation for certain employees and officials of the merging credit union;
• Clarify the contents and format of the members’ notice to provide better information; and
• Create a member-to-member communications process similar that found in NCUA’s regulations covering credit union conversions to or mergers with banks.
Comments on the proposed rule are due by Aug. 7.
To learn more about the proposed rule, click here.
NCUA issues second quarter newsletter
The National Credit Union Administration recently released the second quarter edition of its newsletter, the NCUA Report.
The current issue of the newsletter features columns from Acting NCUA Board Chairman J. Mark McWatters and Board Member Rick Metsger. It also includes articles from several NCUA offices on the agency’s initiatives and information on regulatory, supervisory and compliance issues at federally insured credit unions.
The third and fourth quarter issues of the newsletter will be available in August and November.
The current issue of the newsletter can be read by clicking here.
More compliance news
Agencies issue advisory on appraiser shortage
On May 31, federal banking agencies issued an interagency advisory in response to concerns about the limited availability of state-certified and -licensed appraisers, particularly in rural areas. The joint advisory was issued by the Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency.
The advisory outlines two options designed to help insured depository institutions and bank holding companies in areas facing appraiser shortages:
• Temporary practice permits may allow appraisers credentialed in one state to provide their services on a temporary basis in another state experiencing a shortage of appraisers, subject to state law. The advisory also discusses reciprocity, in which one state allows appraisers that are certified or licensed in another state to obtain certification or licensing without having to meet all of the other state’s certification or licensing standards.
• Temporary waivers would set aside requirements relating to the certification or licensing of individuals to perform appraisals under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act in states or geographic political subdivisions where certain conditions are met. Temporary waivers may be granted when it is determined that there is a scarcity of state certified or licensed appraisers leading to significant delays in obtaining an appraisal.
To read more about the advisory, click here.
CFPB report addresses student loan challenges
The Consumer Financial Protection Bureau on May 16 released a report of a student loan data sample revealing that 9 out of 10 of the highest-risk student loan borrowers were not enrolled in affordable repayment plans.
The bureau also found nearly half of the highest risk borrowers are not enrolled in an affordable repayment plan, compared to less than 10% of those who are not enrolled. A CFPB blog article also disclosed that new data illustrates a cycle of defaults for struggling student loan borrowers.
The full report is available by clicking here.
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