A Different Look at the Republished Regulations

Written by Steve Van Beek

With all the discussion of the CFPB's republishing of the consumer regulations, I thought it would be a good idea to also highlight some of the regulations that did not transfer to the CFPB.  

In December, we discussed how NCUA would retain Truth in Savings - Part 707 for credit unions.

There are also quite a few Federal Reserve regulations that did not transfer to the CFPB.  The rationale being that these regulations do not implement the "enumerated consumer laws" and, thus, didn't fall under the CFPB's authority.  

Here is a list with links to some of the Federal Reserve regulations that did not transfer to the CFPB:

• Regulation D - Reserve Requirements of Depository Institutions - 12 CFR 204
• Regulation CC - Availability of Funds and Collection of Checks - 12 CFR 229
• Regulation GG - Unlawful Internet Gambling Enforcement Act (UIGEA) - 12 CFR 233
• Regulation II - Debit Card Interchange - 12 CFR 235 

Keep in mind that the Federal Reserve retains control over these regulations.  Thus, if there is a rule change to Regulation CC, for example, it would come from the Federal Reserve.

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One of the gifts that Dodd-Frank gave to all credit unions is the need to look to another regulator for regulatory changes.  Which means we have another regulator that, unfortunately, does not have the ability to view the comprehensive regulatory burden put on credit unions by the various regulators.

Comments

[D]

Question - hope it's not too late to ask! - How does CFPB get to call 12 CFR 1004 Regulation D —ALTERNATIVE MORTGAGE TRANSACTION PARITY ?? I thought Reg D would always have to be RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS. What am I missing?

[Steve Van Beek]

Dianna,
Unfortunately, regulators often operate in silos and don't necessarily take into consideration the actions of other regulators.

You would think they'd understand the confusion of naming two banking regulations as "Regulation D." I wish there was a better answer, but it looks like we are stuck with the confusion.

[Kennyb]

"Thus, if there is a rule change to Regulation CC, for example, it would come from the Federal Reserve."

Regulation CC implements both the Expedited Funds Availability Act and the Check 21 Act. The Dodd-Frank Act provided joint rulemaking authority to the Board and the CFPB for the EFAA's consumer protection sections and requires them consult with the OCC, FDIC and NCUA on proposed rules. See DFA 1086. Otherwise, Reg. CC rulemaking is exclusively with the Board.