Recent Regulatory Comment Calls

CUNA
June 1, 2009 | COMMENTS Click to View Comments

SBA Interim Final Rule Temporarily Increases the Size of Businesses Eligible for 7(a) Loan Program

The United States Small Business Administration (SBA) has issued an interim final rule that temporarily changes the size criteria of businesses that will be eligible for the SBA's 7(a) Business Loan Program. In addition to the current threshold, the rule includes an alternative small business size standard that is the same standard that applies to the SBA's Certified Development Company (CDC) Program.

Under the rule, a small business will now be eligible for the 7(a) program if it has a tangible net worth of no more than $8.5 million and average net income after Federal income taxes for the preceding two fiscal years that is no more than $3 million. It is estimated that an additional 70,000 small businesses will be eligible for the 7(a) loan program under this alternative standard.

This alternative standard will apply only until September 30, 2010.

This rule is one of several actions with regard to SBA loans that are intended to help small businesses during the current economic crisis. Other actions include increasing the guarantee on 7(a) loans to 90%, as well as reducing or eliminating the fees.

The interim final rule was effective as of May 5, 2009. The SBA is requesting comments on the rule, which will be due by August 3, 2009

Please submit your comments to CUNA by July 22, 2009. Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com and to Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com; or mail them to Mary or Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, 6th Floor, Washington, DC 20004. You may also contact us if you would like a copy of the interim final rule or you may access it on the Internet here.

> View the Full Comment Call @ CUNA.org

Proposed Changes to the FACT Act Rules and Guidelines on the Accuracy of Credit Information

The Fair and Accurate Credit Transactions (FACT) Act contains provisions that are designed to enhance the accuracy of credit reports. These provisions require the National Credit Union Administration (NCUA), the other Federal financial institution regulators, and the Federal Trade Commission (FTC) to establish and maintain guidelines for use by those who furnish information to credit bureaus that address the accuracy and integrity of the information. These provisions also require the regulators to issue rules to require furnishers to develop policies and procedures to ensure the accuracy and integrity of information provided to credit bureaus, and to consider the guidelines, as appropriate.

The regulators must also issue rules identifying the circumstances in which a furnisher, based on a direct request from a consumer, must investigate disputes about the accuracy of information in a credit report.

NCUA and the other regulators have recently issued a final rule to implement these provisions of the FACT Act. Click here for CUNA's Final Rule Analysis for more information.

The rules and guidelines issued by NCUA will apply to federally-chartered credit unions, and the rules and guidelines issued by the FTC will apply to state-chartered credit unions, although these rules are essentially the same.

In a related matter, NCUA and the other regulators issued an advance notice of proposed rulemaking (ANPR) with regard to the guidelines that were included in the FACT Act final rule. Specifically, the ANPR requests comment as to whether furnishers should provide to credit bureaus the date that an account is opened in order to promote the integrity of the information since this may indicate a long-standing credit history, which may result in a higher credit score for the consumer. The ANPR also requests whether other information should be provided as a means to ensure the integrity of the credit information. After receiving comments in response to the ANPR, the agencies may then issue a specific proposal with regard to these changes.

Comments in response to the ANPR will be due within sixty days after the ANPR is published in the Federal Register, which should be within the several days. Please submit your comments to CUNA by July 20, 2009

Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com and to Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com ; or mail them to Mary and Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6732, if you have questions or would like a copy of the ANPR. You may also access a copy of the proposed rule here.

> View the Full Comment Call @ CUNA.org

FTC Advance Notice of Proposed Rulemaking - Mortgage Acts and Practice

The Federal Trade Commission (FTC) has initiated two advance notice of proposed rulemaking (ANPR) with regard to mortgage loans. The purpose is to request and analyze comments in response to the ANPR for purposes of developing specific proposed rules in the future that would prohibit or restrict mortgage loan practices.

One ANPR addresses the activities that occur throughout the mortgage loan process. This includes advertising, marketing, origination, appraisals, and loan servicing. The other ANPR addresses the practices of those who offer loan modification and foreclosures rescue services to consumers, which have been the subject of recent scams.

For both ANPRs, the FTC is requesting general comments as to whether the agency should develop rules to restrict or prohibit activities in these areas. These ANPRs do not include any detailed or specific proposals. Any rules that would be developed would be issued under the unfair or deceptive acts or practices provisions of the FTC Act.

The rules adopted by the FTC will not apply to banks, thrifts, or federal credit unions. However they will apply to other entities in which the FTC has jurisdiction under the FTC Act and this would include state-chartered credit unions. Any rules that would apply to state-chartered credit unions would be in addition to the current rules that apply to mortgage lending.

Comments in response to the ANPR on activities that occur throughout the mortgage loan process are due by July 30, 2009. Please submit your comments to CUNA by July 21, 2009. Comments directed to the FTC must refer to “Mortgage Acts and Practices Rulemaking, Rule No. R911004.”

Comments in response to the ANPR on activities offered by loan modification and foreclosure rescue services are due by July 15, 2009. Please submit your comments to CUNA by July 7, 2009. Comments directed to the FTC must refer to “Mortgage Assistance Relief Services Rulemaking, Rule No. R911003.”

Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com or to Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com ; or mail them to Mary or Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, 6th Floor, Washington, DC 20004. You may also contact us if you would like a copy of the ANPRs or you may access them on the Internet at the following addresses:

> Read the full comment call @ cuna.org

> Regulatory & Legislative Resources for Lending Council Members

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