FRB Extends Comment Period on Proposed Regulation II Changes
June 29, 2021
The Federal Reserve Board is extending the comment due date for their proposed changes to Regulation II regarding card-not-present debit card transactions having two unaffiliated payment card networks. The new comment due date is Aug. 11.
As a reminder, here is a summary of the changes:
The Federal Reserve Board released proposed revisions to Regulation II to clarify that card-not-present debit card transactions must have two unaffiliated payment card networks available. The changes are related to the growth in online commerce which increased the volume of card-not-present debit card transactions.
Most of the clarification comes from changes to 235.7 and its associated commentary which prohibits network exclusivity and routing restrictions.
The new wording reads, “(2) Permitted arrangements. An issuer satisfies the requirements of paragraph (a)(1) of this section only if, for every geographic area, specific merchant, particular type of merchant, and particular type of transaction for which the issuer’s debit card can be used to process an electronic debit transaction, such issuer enables at least two unaffiliated payment card networks to process an electronic debit transaction, and where each of these networks has taken steps reasonably designed to be able to process the electronic debit transactions that it would reasonably expect will be routed to it, based on expected transaction volume.”
Question of the Week
Q. Is a will naming someone as the executor of the estate enough justification to allow access to a deceased member’s account?
A. No. To access the deceased member’s account, the person claiming to be the executor of the estate needs to provide your credit union with a copy of the member’s death certificate and Letters Testamentary.
Letters Testamentary is a court-issued document that proves that the person named is the executor of the estate in question. It is the probate court’s job to look at the will, determine if it is valid and current, and issue the letters to the appropriate person. It is only after your credit union has received the Letters Testamentary that it should provide access to the deceased member’s accounts. Letters Testamentary are sometimes called Letters of Administration.
National Credit Union Administration
NCUA Releases Q1 2021 State-Level Credit Union Data Report: The NCUA released the first-quarter data for 2021, which shows federally insured credit unions continued to experience double-digit asset and share-and-deposit growth.
NCUA to Distribute $865.5 Million Under Corporate System Resolution Program: The NCUA announced an $865.5 million distribution to the 1,800 membership capital account holders of the former Members United, Southwest Corporate, and U.S. Central Corporate credit unions.
Consumer Financial Protection Bureau
CFPB Issues Rules to Facilitate Smooth Transition as Federal Foreclosure Protections Expire: The CFPB released final rule amendments to the RESPA mortgage servicing requirements to support the housing market’s smooth and orderly transition to post-pandemic operations as the federal foreclosure moratoria are phased out. The rules will establish temporary special safeguards to help ensure that borrowers have time before foreclosure to explore their options, including loan modifications and selling their homes. The rules cover loans on principal residences, generally excluding small servicers, and will take effect on Aug. 31.
Federal Financial Institutions Examination Council
FFIEC Releases List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies: The FFIEC made available the 2021 list of distressed or underserved nonmetropolitan middle-income geographies. These are geographic areas where revitalization or stabilization activities are eligible to receive Community Reinvestment Act consideration.
Office of Foreign Assets Control
OFAC has updated the SDN list as of June 28. The last update prior to this was June 21.
Questions? Contact the Compliance Hotline: 1.800.546.4465; email@example.com.