District Circular Letters
July 13, 2000
BANKING SUPERVISION AND REGULATION:
PROPOSED REVISIONS TO REGULATION E
HUD QUESTIONS AND ANSWERS
To State Member Banks, Bank
Holding Companies, U.S. Branches
and Agencies of Foreign Banks,
and Others Concerned
in the Twelfth Federal Reserve District
Proposed Revisions to Regulation E, Electronic Check Conversion
Transactions (Docket
R-1074)
The Federal Reserve Board recently published proposed revisions to the
Regulation E (Electronic Fund Transfers) Official Staff Commentary, which
applies and interprets the requirements of the regulations.
The proposed revisions provide guidance on electronic check conversion
transactions that occur, for example, when a check is scanned at point
of sale for information to initiate an electronic debit from a consumer's
account. Additional guidance is provided on electronic authorizations
permitting recurring debits from a consumer's account, as well as other
issues. The commentary is intended to help financial institutions comply
with Regulation E when they offer electronic fund transfer services to
consumers.
Comments are due by August 31, 2000.
Proposed Revisions to Regulation E, Disclosure of Automated Teller
Machine Fees (Docket
R-1077)
The Federal Reserve Board requests comment on proposed revisions to Regulation
E (Electronic Fund Transfers) to implement provisions of the Gramm-Leach-Bliley
Act (GLBA) requiring disclosure of automated teller machine (ATM) fees.
Comment is requested by August 18, 2000.
The GLBA amends the Electronic Fund Transfer Act by requiring ATM operators
that impose fees on consumers who hold accounts at other institutions
to post a prominent notice of that fact on or near the ATM. Before the
consumer is committed to completing the transaction, ATM operators must
also disclose the existence of and the amount of the fee, either on the
screen of the ATM or on a paper notice. Many financial institutions that
impose ATM fees already disclose the information required by the GLBA
to satisfy existing regulatory and ATM network requirements.
Department of Housing and Urban Development (HUD) Releases Questions
and Answers (CA 00-6)
The Office of General Counsel at the Department of Housing and Urban
Development (HUD) recently responded to a series of questions submitted
by the Massachusetts Bankers Association. The February 25, 2000, response
from HUD addresses several questions related to completing the HUD-1 settlement
statement, including issues such as aggregate accounting adjustments,
"P.O.C." and third party settlement service providers, and title charges.
HUD's response is an unofficial staff interpretation and provides no protection
from liability under section 19(b) of the Real Estate Settlement Procedures
Act (RESPA) or section 3500.4 of HUD's Regulation X. It does provide,
however, important guidance on compliance with various sections of RESPA
and Regulation X.
Copies
Copies of the Board's notice (Dockets R-1074, R-1077, and
CA 00-6) are available from our Corporate Services Department.
To request copies to be sent by mail, please call (415) 974-2060.
To request copies of R-1074 and R-1077 only to be sent by fax, please
call (415) 974-3333, and specify document number
4154 for R-1074, and 4254 for R-1077.
Additional Information
For additional information about the examination procedures, please contact
our Banking Supervision and Regulation Department, at (415) 974-2967
for Regulation E, or (415) 974-2966 for CA 00-6.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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