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CUNA Survey Investigates Impact Of CFPB 2014 Mortgage Rules

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WASHINGTON (9/17/13)--The Credit Union National Association has just launched a survey of its members that will aid the trade group in assessing the full impact of new Consumer Financial Protection Bureau mortgage rules slated to take effect in January 2014.
 
In January of this year, the CFPB released a slew of final mortgage rules, many of which are scheduled to go into effect with the new year. 2014. The CFPB regulations address mortgage servicing, mortgage loan originator compensation, high-risk-mortgage appraisals, ability-to-repay requirements, escrow accounts and "high-cost" mortgages.
 
The CUNA survey is intended to obtain additional data from credit unions on the top five or six areas of concerns regarding implementation difficulties.  It also will provide better information on how many credit unions may consider altering the mortgage products and services offered to members as a result of the rules, whether credit unions are engaging consultants and vendors to assist with compliance, what the additional costs of compliance will be for credit unions, and the amount of time it will take to train credit union employees, among other things. The survey is featured in this week's Regulatory Advocacy Report (see resource link).
 
Mary Dunn, CUNA senior vice president of regulatory affairs and deputy general counsel, notes that, "While CUNA recognizes that it may be a heavy task to obtain a delay in the compliance date for the rules from the CFPB, CUNA is doing all we can to provide data to the agency that will demonstrate the difficulties and challenges that credit unions are experiencing in their attempts to comply by the January 2014 deadlines.
 
"We are asking all member credit unions to participate in this new survey because the responses will greatly help in our continuing efforts with the CFPB," she added.

For more on this and other key credit union regulatory topics, CUNA members can use the resource link below.

Flood, Terrorism Insurance Laws Examined This Week

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WASHINGTON (9/17/13)--A Senate committee hearing on 2012 national flood insurance program changes Wednesday and a Thursday House committee hearing on the 2002 Terrorism Risk Insurance Act are among items of interest to credit unions this week on Capitol Hill.
 
Among the witnesses scheduled to testify at the Senate Banking Committee hearing entitled "Implementation of The Biggert-Waters Flood Insurance Act of 2012: One Year After Enactment" are Sens. David Vitter (R-La.) and Mary Landrieu (D-La.)--both of whom have introduced bills to reform the program--and Federal Emergency Management Agency Administrator William Craig Fugate.

In 2012, Biggert-Waters extended the National Flood Insurance Program for five years and allowed NFIP premiums to increase by 25% per year over a four-year period in a bid to phase out government-subsidized flood insurance. The premium increases do not impact NFIP policies on primary residences.
 
In the morning before the 2:30 p.m. (ET) flood insurance hearing, the banking panel will also be taking a look at progress of post-Superstorm Sandy recovery.

The House Financial Services Committee hearing Wednesday on the Terrorism Risk Insurance Act (TRIA) is scheduled for 10 a.m. (ET) and a witness list was not available Monday.  TRIA, which requires property and casualty insurers to offer coverage for foreign acts of terrorism on U.S. soil and provides a federal backstop for that coverage, is scheduled to expire at the end of 2014.

Also on the committee hearing agenda this week:
  • The House Ways and Means subcommittee on oversight will hold a hearing on "Internal Revenue Service's Exempt Organizations Division Post-TIGTA (Treasury Inspector General for Tax Administration) Audit" Wednesday at 2 p.m. (ET);
  • The House Financial Services subcommittee on capital markets and government-sponsored enterprises will hold a hearing on "Examining the Securities and Exchange Commission's (SEC) Money Market Fund Rule Proposal" Wednesday at 10 a.m. (ET); and
  • The House Small Business Committee will hold a full committee markup of H.R.2542, the "Regulatory Flexibility Improvements Act of 2013" at 1 p.m. (ET) Wednesday.
Although both House and Senate are scheduled to adjourn next week for a District Work period, buzz is circulating that unless the House makes substantial progress this week on a continuing resolution for the federal debt, that body will be back in session next week.

Fed Banks Issue Payment System Improvements Paper, Seek Comment

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WASHINGTON (9/17/13)--The Federal Reserve Banks recently conducted payment systems research and recently unveiled its findings in its "Payment System Improvement--Public Consultation Paper."  The Credit Union National Association met with the Fed regarding the study prior to its release. 

The paper is an important undertaking by the Federal Reserve Banks and CUNA is encouraging credit unions to read the report and develop a list of concerns regarding payments to share with CUNA and their state credit union league.  

The Fed Bank white paper notes some potential improvement areas; those areas included faster payments, closed payment communities, and international, mobile, and traditional payment channels.
 
Sandra Pianalto, president of the Cleveland Fed, stated the purpose of the paper is "to share Federal Reserve perspectives on the key gaps and opportunities in the U.S. payment system and identify the desired outcomes that close these gaps and capture these opportunities."
 
The Fed Banks seek comment from credit unions and all payment systems users on those issues, as well as on the role the Fed banks should play in payments. Comments are due by Dec. 13.
 
CUNA will be preparing a Regulatory Comment Call to summarize the Fed paper and to seek input from the credit union system.  CUNA is reviewing the paper with the CUNA Payments Subcommittee, the CUNA Councils, and others.
 
Watch News Now for future developments.