Already this year, bankers have faced changes to regulations impacting mortgage lending, credit card disclosures and check processing. Here's what else is on the regulatory agenda for 2010.
In June, a new rule takes effect requiring banks to have policies and procedures in place to block transactions prohibited under the Unlawful Internet Gambling Enforcement Act. Among other things, the rule requires banks to obtain certifications from commercial depositors testifying to compliance with the law.
By July, banks must have policies and procedures in place to improve the accuracy of information reported to credit rating agencies. They must also have a process in place that allow for investigation of errors when consumers raise complaints about their credit reports.
Also in July, banks will be required to abide by new rules covering overdraft fees. Banks will need to obtain opt-in confirmations from customers agreeing to pay a fee to overdraw their account. The new rulesalso require banks to allow customers to opt out of participation in the program at any time.
Though the final implementation date is not clear, the comment period has ended for new regulations proposed by the Department of Housing and Urban Development for registration and licensing of mortgage loan originators.
The Federal Reserve Board is altering its Regulation Z, which implements the Truth-in-Lending Act, to require changes in the disclosures customers receive in credit card solicitations and in documents delivered on the opening of an account.
Changes are also in the cards for the Fed's Regulation AA, the central bank's rule regulating Unfair or Deceptive Acts or Practices. The pending changes would, among other things, restrict banks' ability to change the interest rate on credit card balances and change the way payments are applied to existing balances.
New Privacy Forms
As of yearend, banks will be required to adopt the new model privacy form created by regulators under the Financial Services Regulatory Relief Act of 2006, providing customers with a simplified chart outlining privacy practices and procedures.