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									    Regulatory Update
California 2011 Government Relations Rally
               April 12, 2011

Chris Collver, Senior Regulatory & Legislative Analyst
     California and Nevada Credit Union Leagues
       Quick Review of 2010
• January 1 – RESPA: New GFE form;
  modifications to HUD-1 & HUD-1A
• February 22 – CARD Act “Phase 2” provisions
• February 27 – Reg CC: All checks local
• June 1 – Unlawful Internet Gambling
  Enforcement Act compliance required
• July 1 – Reg Z: Open-end lending rules
        Quick Review of 2010
• July 1 – Consumer “direct disputes of credit info
• July 1/August 15 – Opt-in of overdraft protection
  coverage for ATM and one-time debit
• August 22 – CARD Act “Phase 3” provisions
  (penalty fees & rate increase reviews)
• October 1– SAFE Act: Registration of mortgage
  loan originators (policies & procedures)
              2011 (So Far)
• January 1– Revised federal privacy notices
• January 1– Risk-based pricing notices
• January 27 –NCUA: Fiduciary duties of FCU
  directors (July 27 for financial literacy)
• January 30 – Mortgage loan tables
• March 15 – ADA ATM accessibility (voice
  guidance and physical accessibility)
• April 1– Loan originator compensation (limits
  and anti-steering provisions)
           2011 (Still to Come)
• May 1 – Garnishment of accounts receiving
  federal benefit payments via direct deposit
• May 24 – EEOC rules to implement ADA
  Amendments Act (definition of disability)
• July 21– Reg CC: $200 immediate availability
• July 21 – CFPB “transfer of power” date
• July 21 – Current effective date of interchange
          2011 (Still to Come)
• July 29 – SAFE Act mortgage loan originator
  registration deadline
• August 20 – Reg CC: Member notification date
  of $200 immediate availability
• October 1 – Reg Z: New disclosures for
  mortgage loans with variable rates or payments
• October 1 – CARD Act “clarification” rules
• October 20 – NCUA: Corporate CU rules
   Consumer Financial Protection
         Bureau (CFPB)
• Official “transfer of power” date is July 21, 2011
• Will enforce Federal consumer financial laws
• Has authority to define and prohibit (via
  rulemaking) “unfair, deceptive, or abusive” acts
  or practices
• Rulemaking authority covers all institutions,
  regardless of size
   – Examination authority over all FIs > $10 billion
• Data collection/analysis
• Complaints
   Consumer Financial Protection
         Bureau (CFPB)
• Website:
• Several key appointments:
  – Asst. Directors for Supervision, Enforcement, Card
    Markets, Credit Information Markets, and Community
    Banks and Credit Unions
  – General Counsel
  – Head of rule writing team
• Hiring exam staff
• Currently working on merging the disclosure
  requirements under RESPA and Regulation Z.
• Survey: Effect of CARD Act
  Additional Requirements Under
• Other “regulatory improvements” and
  amendments under Dodd-Frank include:
  – Loan data collection on women-owned, minority-
    owned, and small businesses.
  – Additional HMDA data collection and reporting, to
     • Interest rates, loan terms, how originated, SAFE Act ID #,
       applicant’s FICO, etc.
  – Extensive additional provisions and restrictions on
    mortgage loan origination and underwriting.
    FDIC’s Guidance on Overdraft
         Payment Programs
• Issued November 24, 2010. Effective July 1, 2011
• Banks must also provide "opt out" for checks and ACH
• Supervisory expectations include:
   – If a customer overdraws their account on more than six occasions in
     a rolling 12 month period (when fee charged), contact customer to
     discuss “less costly alternatives”
   – Institute appropriate daily limits on customer costs
   – Consider eliminating overdraft fees for transactions that overdraw
     an account by a de minimis amount
   – Review check clearing process to avoid maximizing customer
     overdraft fees
• Proposal on definitions of “net worth” and “equity
  ratio” – comments due May 23rd
• Proposal to require all federally-insured CUs to
  have a written policy addressing interest rate risk
  management – comments due May 23rd
• Proposal (with other federal agencies) on
  incentive-based compensation – comments due
  late May
        NCUA: 2011 Exam Focus
•   Annual exam schedule fully implemented
•   Concentration risk
•   Interest rate risk
•   Vendor due diligence
    – Payment system service providers
• Greater attention to ECOA, HMDA, Fair Housing,
  and Truth in lending violations
• Bank Secrecy Act compliance
     NCUA: 2011 Agency Focus
• Corporate system stability
• Further implement Office of Chief Economist
• Further implement Office of Consumer Protection
• Increase staffing to accommodate exam schedule
• Continue public education campaign regarding
• Establish the Office of Minority and Women

• Research & Information Toll-free Hotline:

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