NCUA Announces Technical Changes to Regulations

by: Anna DeSimone

May 31, 2013 the Board of the National Credit Union Administration (NCUA) announced a number of technical amendments to NCUA’s regulations. The final rule was based on issues identified by staff and through NCUA’s rolling, three-year regulatory review process. In addition, the Board is making a number of nomenclature changes to NCUA’s regulations to reflect changes to NCUA’s office structure, including the transfer of duties and the creation of the new Office of National Examinations and Supervision (ONES).

Under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), rulemaking authority for a number of consumer financial protection laws were transferred from various federal regulatory agencies, including NCUA, to the Consumer Financial Protection Bureau (CFPB). 

As a result, the Board is now updating certain cross citations within its regulations and rescinding NCUA’s rules governing the ”Privacy of Consumer Financial Information” under the Gramm-Leach-Bliley Act and the ”Registration of Residential Mortgage Loan Originators” under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which were transferred to the CFPB.

In 2012, NCUA’s rolling, three-year review of its regulations identified, among other things, minor errors, duplicative definitions, and outdated regulatory provisions that could be eliminated to help update, clarify and simplify the regulations. NCUA reviews one-third of its regulations each year to ”update, clarify and simplify existing regulations and eliminate redundant and unnecessary provisions.”

The two key provisions of the rule announced in the May 31, 2012 Federal Register are summarized below:
 

Privacy of Consumer Financial Information
 

In response to changes made by the Dodd-Frank Act which has been republished by the CFPB at 12 CFR part 1016.9 To assist credit unions in locating part 1016, rescinded part 716 will retain its original heading and include a cross cite to the CFPB’s rules governing the privacy of consumer financial information (Regulation P).

Registration of Residential Mortgage Loan Originators
 

In response to changes made by the Dodd-Frank Act, this final rule rescinds 12 CFR part 761,which has been republished by the CFPB at 12 CFR part 1007.11 To assist credit unions in locating part 1007, rescinded part 761 will retain its original heading and include a cross cite to the CFPB’s rules governing the federal registration of residential mortgage loan originators (Regulation G).
 
The final rule is effective May 31, 2013.

About the Author:
Anna DeSimone is President and Founder of Bankers Advisory, Inc.  

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Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.

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