ALEXANDRIA, Va.-In a regular posting in the Federal Register, NCUA provided a peek into what is in store on the regulatory side for the remainder of the year.
NCUA expects to issue its final rule on service to underserved areas in response to litigation by the American Bankers Association at the May 25 board meeting. The proposed regulation would bar non-multiple common bond credit unions from adopting underserved areas in the future and require the credit union to locate a service facility within each area adopted. However, the ABA and other banking groups want the ban to apply retroactively, which the credit union community has opposed.
Once a final rule is approved, the ABA will have 20 days to file a response to NCUA's motion to dismiss as moot with the Utah court where it brought the lawsuit.
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The NCUA Board also is slated to consider a final rule in June on third party servicing of indirect vehicle loans. The rule follows a Risk Alert issued last summer that severely curtailed credit union activities in the market.
NCUA had planned to have out a handful of notices of proposed rulemaking under requirements in the Fair and Accurate Credit Transactions Act at its last board meeting. The agency must issue rules jointly with the federal banking regulators concerning red flag guidelines to identify possible identity theft situations, investigations in credit and debit card changes of address, and guidelines for accuracy of information reported to consumer reporting agencies. This last item the NCUA Board issued by notation vote in March, but the other two have not been addressed yet.
"All of the FACT Act regulations are interagency regulations where NCUA staff is working as part of an interagency group with the other financial institution regulators so the timing is not within our control and, also, all the agencies have to coordinate their approval. For that reason, the NCUA Board has acted on most of the FACT Act regulations by notation vote," NCUA Director of Public and Congressional Affairs John McKechnie explained. He added that the other two would be considered in the next couple of months.
An advance notice of proposed rulemaking regarding reinvestigations of direct disputes with furnishers was also due out in April. Final action is anticipated for June regulating the affiliate use of information for marketing solicitations under the FACT Act.
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