WASHINGTON (12/30/11)--As the credit union world heads into 2012, the Credit Union National Association's (CUNA) Regulatory Advocacy department has created a chart that lists a variety of agencies' pending proposals that would affect credit unions.
As busy as 2011 has been, indications are that 2012 will be just as full of regulatory actions. CUNA and the state leagues remain committed to improving the regulatory environment for credit unions, and that will continue to be the top regulatory advocacy priority into 2012.
So what happened in 2011? (Click on chart image to access chart.)
Click to download the chart
At the National Credit Union Administration (NCUA) alone there were 18 new regulatory initiatives, which was five more than the year prior.
With some of the more restrictive of those, such as ones on credit union service organizations (CUSOs), interest rate risk management (IRR), and loan participations, CUNA notes that the agency seems poised to replace the principle that credit unions should manage their own risks with a new principle: Protect the National Credit Union Share Insurance Fund no matter what--even if that means eliminating risks.
However, CUNA will continue its ongoing efforts to work with NCUA Chairman Debbie Matz and senior NCUA staff to detail credit union concerns with the CUSO and IRR proposals as well as with other agency staff on a request for comments on using derivatives to mitigate interest rate risk.
CUNA is also identifying concerns with proposals issued in December on loan participations, the flagging Reg-Flex program, and on emergency sources of liquidity.
At the new Consumer Financial Protection Bureau (CFPB) there are a number of significant projects underway that could affect credit unions either directly or indirectly.
CUNA Senior Vice President and Deputy General Counsel Mary Dunn explains in her final Regulatory Advocacy Monthly Report of the year (see resource link) that credit unions will not necessarily see a number of onerous new rules from the CFPB that impose numerous new requirements on credit unions. However, she says, the agency does have some significant projects underway and proposals out for comment that CUNA is watching closely and raising concerns and questions with the CFPB.
One of CFPB's key pending projects is its request for comment on how to streamline the regulations that were transferred to its authority from other agencies under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Other CFPB projects and proposals include (see chart for detail):
- Remittance transfers (initiated by the Fed);
- Ability to repay (mortgages, initiated by the Fed);
- Regulation CC, Expedited Funds (shared authority with the Fed);
- Private student lending regulation;
- Credit card complaints for large issuers (more than $ 10 billion in assets);
- Deposit/share account insurance disclosures for non-federally insured financial institutions;
- Know Before You Owe (certain disclosures for TILA and RESPA simplified; disclosures for credit cards; and disclosures for student loans); and
- Rules that were transferred to the agency, such as the Home Mortgage Disclosure Act, RESPA, Equal Credit Opportunity, Truth-in-Lending and others.
For other agencies and initiatives actively being monitored by CUNA, please refer to the chart above and resource link below.