Regulatory Compliance Update
By: Hickman Beckner, Vice President
March was a quiet month for regulatory affairs. Congress enjoyed their Spring recess and the regulatory agencies did not issue any major new rules.
The IRS announced the inflation adjusted plan limits for Health Savings Accounts. These changes do not impact loan or leasing systems.
The IRS published the 2016 inflation adjusted penalties for failure to file correct information returns by the IRS mandated due date and failure to furnish correct payee statements to the IRS. The new files range from $50 per return up to $530 per return. This serves as a reminder to all financial institutions of the importance of correct IRS filings.
The National Credit Union Administration (NCUA) is soliciting public comments on reducing the regulatory burden for credit unions. The NCUA has issued a notice asking for comments on the Rules of Procedure and Safety and Soundness.
May 26, 2016 – Comments due on the FDIC’s proposed rule that would facilitate prompt payment of insured deposits when banks fail.
July 1, 2016 – Effective date for the IRS temporary regulations that remove the automatic extension of the deadline for filing form W-2.
September 23, 2016 – Effective date for Phase 1 of NACHA’s same-day ACH processing. Phase 1 covers deposits only. Phase 2 which cover payments will become effective in September 2017.
Some interesting proposals have been put forth in Congress that will impact financial institutions:
Data Security Act would create a national law for uniform protection for personal data. The proposed legislation would require holders on non-public personal information to implement an information security program and notify stake holders of certain data breaches of encrypted information that may cause identity theft or fraudulent transactions.
Flood Insurance Market Parity and Modernization Act would make technical adjustments to the requirements for flood insurance and would provide a legal framework for private flood insurance where flood insurance is require4d for federally-backed mortgages. The Act would also extend the federal flood insurance program to U.S. territories such as Puerto Rico and Guam.
Foreclosure Relief and Extension for Service members Act would extend the through December 31, 2017 the on-year time period after military service during which a court order would be required for foreclosure or seizure of property or a court may temporarily delay action to enforce a debt-related action on a service member’s property that was owned before their military service.
The S.A.F.E. Lending act would restrict the use of Remotely Created Checks (RCC’s) by third parties, require all lenders to abide by state rules for all small dollar loans, require payday lenders to register with the CFPB and would require the CFPB to monitor fees associated with prepaid cards issued by payday lenders. The Act would also ban lead generators and websites from soliciting payday loans.
Unfair or Deceptive Acts or Practices Uniformity Act would remove the CFPB’s authority to regulate abusive acts or practices, prohibit the CFPB from taking actions against financial institutions for unfair or deceptive acts or practices without first consulting the institution’s primary regulator and require the CFPB to comply with the Federal Trade Commission’s rulemaking authority for any rules covering unfair or deceptive acts or practices.