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This week credit unions saw wins on the House floor as well as in the House Financial Services Committee. On the floor, the House passed three pieces of CUNA-backed legislation that if enacted will reduce the regulatory burdens faced by America’s credit unions.
CUNA staff attended the NCUA's final board meeting for 2017 at agency headquarters in Alexandria, Virginia. As anticipated, the Board unanimously approved to finalize the proposed rule, without modification, on emergency mergers—amending the definition of “in danger of insolvency” and creating a fourth category of existing net worth categories—giving the agency earlier authority to preserve asset values for an undercapitalized, failing credit union.
The House Financial Services Committee passed three CUNA-backed regulatory relief bills. Today was the second and final day of the 15-bill markup. Prior to the start of the markup, CUNA sent a letter supporting three bills and reiterated the importance of regulatory relief for credit unions and their 110 million members.
The DoD has released long-awaited guidance on the Military Lending Act that will be published in tomorrow’s Federal Register. The guidance amends three comments included in last year’s DoD guidance and adds one additional comment.
Credit Union National Association, on behalf of America’s credit unions and their 110 million members, filed an amicus brief in the case, English v. Trump. We filed this brief because credit unions have a strong interest in the operation and the leadership of the Consumer Financial Protection Bureau. And, credit unions’ structure, mission and history gives us a unique perspective on these matters.
The Federal Housing Administration (FHA) announced it will no longer insure new mortgages on properties that include Property Assessed Clean Energy (PACE) assessments.
CUNA sent a letter to Chairman Hensarling and Ranking Member Waters to express support for three regulatory relief measures that will be discussed before the Committee today.
More than a dozen bipartisan Members of Congress sent a letter to the Federal Communications Commission (FCC) Chairman Pai in support of CUNA’s Telephone Consumer Protection Petition that was filed this fall.
Beginning next year, lenders will need to report a number of additional data points to the CFPB under HMDA. Some of that data will then be made available to the public by the CFPB and other regulators.
The Wisconsin Credit Union League successfully advocated for the passage of bills permitting prize-linked savings raffles and requiring financial literacy standards in schools. The bills passed both chambers unanimously and were signed by Governor Walker.
CUNA wrote a letter to support ongoing supervisory modernization and regulatory relief under NCUA’s Strategic Plan 2018-2022.
CUNA sent a letter to Representative Bill Posey in support of his recently introduced legislation to repeal the NCUA’s risk-based capital rule – The Common Sense Credit Union Capital Relief Act of 2017.
This afternoon, a U.S. District Court Judge threw out a request for a restraining order that would have blocked OMB Director Mulvaney from assuming the leadership position at the CFPB.
On the Friday after Thanksgiving, the CFPB Director Cordray officially resigned and subsequently named Leandra English as deputy director before resigning, indicating English would become acting director upon his resignation. Meanwhile, President Donald Trump named Office of Management and Budget Director Mick Mulvaney as interim director of the bureau.
The Department of Labor officially announced that the Fiduciary rule will be delayed for 18 months. This means the applicability date will now be July 1, 2019.
In support of CUNA’s Petition with the Federal Communications Commission (FCC) seeking declaratory relief from credit unions subject to the Telephone Consumer Protection Act (TCPA), credit unions, other trade associations, and service organizations have filed comments corroborating the need for the common-sense Telephone Consumer Protection Act (“TCPA”) reforms set forth in the Petition. CUNA highlighted this support in Reply Comments filed on November 21.
This afternoon, the Senate Appropriations Committee released its draft spending package to fund agencies and government functions under the jurisdiction of the Senate Appropriations Subcommittee on Financial Services and General Government through the end of Fiscal Year 2018. This bill includes many significant wins for credit unions!
CUNA submitted a comment letter to NCUA regarding its comprehensive Regulatory Reform Agenda, issued by a Task Force charged with culling all relevant regulations, with recommendations to streamline and eliminate ineffective, outdated, and excessively burdensome regulations. The agenda parses regulatory recommendations into multi-year efforts, and temporarily supersedes the agency’s standard one-third annual regulatory review, which is slated to re-commence in 2020.
CUNA sent a letter to Chairman Orrin Hatch and Ranking Member Ron Wyden of the Senate Finance Committee in response to the Chairman’s mark of the Tax Cuts and Jobs Act. In the letter, CUNA highlights the importance of credit unions and that they are American’s best option for financial services.
The House passed legislation to reauthorize the National Flood Insurance Program, including changes that could limit future coverage and discounts for high-risk properties, modify premiums and surcharges paid by policyholders and expand opportunities for private insurers to sell policies.
The NCUA held their November 2017 Open Board meeting. The Board approved a final corporate credit union rule, the 2018-2019 operating fund budget, and the overhead transfer rate methodology. The Board also received the final briefing on the Corporate Stabilization Fund before it was merged into the National Credit Union Share Insurance Fund.
Consumer Financial Protection Bureau Director Richard Cordray announced to Bureau staff today that he will step down from the agency by the end of the month after serving since 2013.
In a letter sent last week to the CFPB, CUNA supports a proposed change to the Reg Z mortgage servicing rules (effective April 2018).
The House Judiciary Committee held an oversight hearing concerning the Department of Justice. Prior to the hearing, CUNA sent a letter to Chairman Goodlatte and Ranking Member Conyers in order to bring attention to the fact that frivolous class action lawsuits brought under the American with Disabilities Act have become increasingly problematic for credit unions.
The House Financial Services Committee started a multi-day markup of a number of bills. Prior to the start of the markup, CUNA sent a letter supporting three of the bills.
The CUNA Advocacy and Economics teams have broken down both the House and Senate tax reform bills into short white papers.
A bipartisan group of Senate Banking Committee members have released a bill that could offer credit union regulatory relief.
Ahead of the 2018 implementation of legalized adult-use cannabis in CA, State Treasurer John Chiang released a report from the Cannabis Banking Working Group, which the California Credit Union League was a member of. The findings in the report were the culmination of 6 hearings of the Treasurer’s 18-person Working Group, whose members included representatives from local and state government, the cannabis industry, financial institutions and law enforcement.
With CUNA’s Member Activation Program (MAP), CUNA, the Cornerstone Credit Union League (CCUL) and credit unions successfully supported an amendment to the Texas constitution that will lead to Texas to becoming the 22nd state to permit prize-linked savings programs.
The House Ways and Means Committee Chairman Kevin Brady (R-TX) unveiled a 429-page tax reform bill. H.R. 1, the “Tax Cuts and Jobs Act,” would cut taxes by roughly $1.5 trillion over ten years and would make significant changes to and simplify our nation’s tax laws. On November 9, 2017, after a four-day markup, the Committee passed the bill and it is expected to be considered by the full House of Representatives the week of November 13, 2017.
CUNA sent a letter following a meeting with Assistant Attorney General John Gore, outlining steps the DoJ should take to limit litigation threats to credit unions for website accessibility under the cover of the Americans with Disabilities Act (ADA).
CUNA responded to the CFPB’s interim final rule clarifying
that mortgage servicing compliance with the Real Estate Settlement Procedures
Act (RESPA) for a borrower who has invoked cease communication rights under the
Fair Debt Collection Practices Act (FDCPA) is satisfied when notice has been
provided within 10 days following the 180th day after initial
The National Credit Union Administration (NCUA) published the Agenda for its November 2017 Board Meeting, which will be held at NCUA headquarters in Alexandria, Virginia at 10:00 a.m. on Thursday, November 16.
The Senate Judiciary Committee held a hearing entitled, “The Impact of Lawsuit Abuse on American Small Businesses and Job Creators.” CUNA sent a letter highlighting our concern about a recent uptick in litigation threats against credit unions brought under the cover of the Americans with Disability Act (ADA).
The Department of Labor has officially indicated that the Department of Labor Fiduciary rule will be delayed for 18-months. This means the applicability date will now be July 2019.
CUNA filed a letter with the CFPB in response to its release of prototypes of the overdraft disclosure form, along with its most recent report on overdraft practices. While we noted a few substantive concerns with the prototypes themselves, our bigger issue is with the data the CFPB continues to rely on as it pursues potential changes in the area of overdraft programs.
What a week we had last week. Senate Banking Committee Ranking Member Sherrod Brown (D-OH) “walked away” from negotiations with Chairman Mike Crapo (R-ID) on a package of regulatory relief for smaller financial institutions, including credit unions. While disappointing, we are encouraging all parties to return to the negotiating table and craft a package that will remove unnecessary and unneeded regulatory burdens on credit unions.
CUNA, the Cornerstone Credit Union League and credit unions are using CUNA’s Member Activation Program (MAP) to build support for two credit-union supported amendments to the Texas constitution that are on the ballot Tuesday. The measures would modernize home equity lending laws and allow for prize-linked savings accounts in Texas.
Earlier this week, The Hill newspaper has once again named CUNA’s President/CEO, Jim Nussle, to its annual list of Washington’s top lobbyists!
Yesterday, two House subcommittees held hearings of a similar nature that unfortunately has become much too common – data security!
It’s official – the resolution to repeal the Consumer Financial Protection Bureau’s Arbitration rule has been signed into law by the President.
CUNA joined a number of financial trade associations in sending a letter in support of strong data security legislation to Chairman Blaine Luetkemeyer and Ranking Member Lacy Clay of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.
Check the Calendar… It’s Not Groundhog Day… Stop me if you’ve heard this before: The House of Representatives is expected to vote this week on legislation to repeal and replace Obamacare. You may recall the House’s failed effort to pass a new healthcare law last month, but they’re back at it again this week after weeks of negotiations between leaders in the House, Senate and the White House. Here is why it is important to us: time on the House floor is valuable, and unexpected changes to the calendar tend to have a butterfly effect on other priorities. If consideration of this legislation takes much time it may displace or delay other matters, including financial regulatory reform legislation.
This week the Congress will, among other items, be considering legislation to fund government operations through September 30th 2017, the end of this fiscal year. Current government funding ends Friday and at midnight and action is necessary to avert a government shutdown.
Tomorrow, the House Financial Services Committee will hold its hearing on the CHOICE 2.0 Act. As mentioned last week, CUNA has been busy working its way through the nearly 600 pages of legislation since it was released on Wednesday. This afternoon, CUNA sent a letterto Chairman Jeb Hensarling and Ranking Member Maxine Waters outlining CUNA’s position on CHOICE 2.0 in its current form
This week, CUNA and the World Council of Credit Unions (WOCCU) wrote a joint letter to Congressman Mark Meadows (R-NC), Chairman of the House Oversight and Government Reform Subcommittee on Government Operations, and Senator Rand Paul, in support of their legislation (S. 869 and H.R. 2054) to repeal the Foreign Account Tax Compliance Act (FATCA). The House Oversight and Government Reform Subcommittee on Government Operations will hold a hearing tomorrow entitled, "Reviewing the Unintended Consequences of the Foreign Account Tax Compliance Act." This joint CUNA/WOCCU letter will be included in the official hearing record. Senator Rand Paul is scheduled to testify at the hearing.
In addition to a string of recent enforcement actions, the CFPB today announced that its recent supervisory work has found that some student loan and mortgage servicers are violating consumer financial laws.
CUNA joined a number of trade associations and sent two letters in support of legislation introduced in the House and Senate that would require Property Assessed Clean Energy (PACE) lenders to make important consumer disclosures to potential borrowers about the impact these loans could have on the marketability of their homes.
Yesterday, the House Financial Services Committee held a hearing to discuss the CHOICE 2.0 Act. Prior to the hearing, CUNA sent a letter to Chairman Hensarling and Ranking Members Waters outlining the position of America’s credit unions on this legislation.
In honor of National Financial Literacy Month, CUNA and the National Credit Union Foundation (the Foundation) sent a letter to CFPB Director Cordray encouraging the CFPB to work with credit unions to empower consumers with financial knowledge.
The CFPB has scheduled a public field hearing in Los Angeles, CA to discuss small business lending. The hearing will include remarks from Director Cordray, a panel discussion with consumer advocates and industry representatives, and will end with testimony from members of the public.
Prior to the House Financial Services Committee hearing on the CHOICE 2.0 Act, CUNA joined a number of other financial trade associations in the Electronic Payments Coalition (EPC) in sending a letter supporting the repeal of the Durbin Amendment to Chairman Hensarling.
The Consumer Financial Protection Bureau announced the launch of a new mortgage performance trends tool that will track delinquency rates throughout the nation.
Chairman Jeb Hensarling announced that he will not be seeking reelection in 2018.
Earlier today, CUNA’s President/CEO Jim Nussle, Chief Advocacy Officer Ryan Donovan, Chief Compliance Officer Jared Ihrig, Senior Director of Advocacy & Counsel Leah Dempsey, and CUNA Mutual Sr. Consultant Joe Luedke met with senior officials at the Department of Justice requesting clarification on how credit unions’ websites should comply with requirements surrounding website accessibility under the Americans with Disabilities Act (ADA).
Yesterday, CUNA sent a letter to the Department of Treasury’s Secretary Steven Mnuchin thanking the Treasury for hosting the Credit Union Roundtable on April 4th and providing additional information on the ways regulations can be streamlined and more manageable for credit unions. The Treasury has been holding similar roundtables to gather information as it prepares a paper in response to the President’s Executive Order, issued on February 3, on Core Principles in Regulating the United States Financial Systems.
Recently, the League of Southeastern Credit Unions (LSCU) successfully championed an Alabama bill, S. 27, that extends the credit union examination period to 18 months. After an extensive League lobbying effort, Governor Kay Ivey signed the bill this week.
During the Full House Financial Services Committee hearing on the CHOICE 2.0 Act earlier this week, Ranking Member Maxine Waters requested a “Minority Day” hearing on the legislation. The Ranking Member was granted her request and the Democrats of the Committee met today to continue their debate of CHOICE 2.0 (which they referred to as the Wrong CHOICE 2.0).
The House of Representatives is expected to vote on FY 2017 omnibus appropriations legislation. The House is also scheduled to vote on the “Working Families Flexibility Act of 2017” (H.R. 1180).
CUNA, its state partners, individual credit unions, and concerned credit union members, saw their heavy lobbying and grassroots efforts pay off today when the Congress proposed a compromise omnibus spending bill for fiscal year 2017.
This morning, House and Senate leaders released a spending package to fund government operations through September 30, 2017. It is expected to pass Congress and be signed into law by the president before Friday at midnight, the time when the current federal spending authorization ends.
Today, the House Financial Service Committee is meeting to mark-up H.R. 10 – the Financial CHOICE Act (also known as CHOICE 2.0). Prior to the mark-up, CUNA sent a letter to Chairman Hensarling and Ranking Member Waters reiterating the position of America’s credit unions (outlined in a letter sent last week).
As predicted, the start of the House Financial Services Committee mark-up for the CHOICE 2.0 Act has been very partisan and will be very long. The Clerk of the Committee is currently reading the full text of the legislation – which is nearly 600 pages (and is expected to take 6 hours to read).
Over the weekend, the House and Senate agreed to a spending package to fund the government through the end of the fiscal year – September 30, 2017. Included in this legislation package was language extending the policy prohibiting the Department of Justice from using federal money to interfere with state medical marijuana laws (Section 537).
CUNA and the Cooperative Credit Union Association are pleased to announce that this summer, we will host a booth featuring “America’s Credit Unions” at the NCSL Legislative Summit in Boston. The ALEC Annual Meeting will be held in Denver this year and, while we will not host a booth, we will attend key committee meetings as well as the general sessions to represent our members and monitor any discussions impacting credit unions.
The CFPB currently has a Request for Information (RFI) out seeking whether lenders are interested in using alternative data like rent, utility payments, etc. to determine credit worthiness.
In a letter to the Department of Labor this week, 124 Members of Congress expressed concern about the Fiduciary rules’ impact on the ability of consumers to access retirement information. The letter expressed that “we need to make it easier for working families – particularly low- and middle-income families to save for their retirement years.” But, noted the rule could detrimentally impact this demographic of consumers.
NCUA announced the recovery of $400 Million from Credit Suisse. This is in addition to the $445 Million announced on Monday in a recovery from UBS. This brings the total recoveries on behalf of five failed corporate credit unions that purchased residential mortgage-backed securities to $5.1 Billion.
After two full days of mark-up and this morning’s amendment votes, CHOICE 2.0 has passed the House Financial Services Committee by a vote of 34-26. While the votes and the amendments stuck to party lines, CUNA was encouraged to hear a number of Members from both parties cite the negative effects that overly broad rules stemming from the Consumer Financial Protection Bureau have had on credit unions and their members.
The Supreme Court of the United States, in a 5-3 decision ruled in the case styled the City of Miami v. Bank of America and City of Miami v. Wells Fargo. This case could have significant impact on credit unions and their potential exposure to class action lawsuits stemming from the anti-discrimination provisions of Fair Housing Act. CUNA has been active in this case originally filing an Amici Curiae brief to convince the Court to hear the case, and subsequently filing an Amici Curiae brief on the merits of the case.
Earlier today, the Senate Committee on Banking, Housing, and Urban Affairs had its second hearing to discuss the Reauthorization of the National Flood Insurance Program (NFIP) – which is set to expire at the end of September.
During remarks at an industry conference this week, Federal Communications Commissioner (FCC) Michael O’Rielly highlighted the need for Telephone Consumer Protection Act (TCPA) reform.
Earlier this week, CUNA sent a letter to Representative Blaine Luetkemeyer (R-MO) thanking him for introducing H.R. 2133, the “Community Lending Enhancement and Regulatory Relief Act of 2017” also known as the “CLEARR Act.”
Earlier this week, the Michigan Credit Union League and 100 of their credit union CEOs sent a letter to the NCUA’s Acting Chairman Mark McWatters and Board Member Rick Metsger. The Michigan credit unions encouraged the NCUA Board to merge the National Credit Union Share Insurance Fund (NCUSIF) and the Temporary Corporate Credit Union Stabilization Fund (TCCUSF). They also urged the Board to issue a dividend to any credit union with amounts over the mandated 1.3% in the NCUSIF.
CUNA’s Senior Director of Advocacy and Counsel, Andy Price, sent a comment letter to the CFPB in regards to the Bureau’s Proposed Rule on Equal Credit Opportunity Act’s (ECOA) Regulation B Ethnicity and Race Information Collection.
The House of Representatives will reconvene next week. The Senate reconvened today to consider former Representative Heather Wilson to be Secretary of the Air Force. Following the disposition of the Wilson nomination, the Senate will proceed to a consider Scott Gottlieb, of Connecticut, to be Commissioner of the Food and Drug Administration.
Recently, the Ohio House passed the budget (Sub. H. 49) by a 58-37 vote. The bill contains several provisions that would impact credit unions, including public deposits, a Good Funds correction and remote notarization. The Ohio League is working diligently to strengthen those provisions as the measure heads to the Senate.
Last week, CUNA continued its effort to achieve faster payments in the U.S., participating in a two-day meeting of the Federal Reserve’s Faster Payments Task Force in Chicago.
Earlier this month, Georgia’s Governor Nathan Deal signed H. 143 into law. This legislation, backed by Georgia’s Credit Unions, included a number of pro-credit union provisions that will improve operations and alleviate compliance burdens.
CUNA filed its comment letter today urging the NCUA to adopt a rule to allow credit unions to accept supplemental capital instruments to count towards the risk-based net worth requirement.
CUNA thanks Representatives Peter King and Brad Sherman for sending a comment letter to Gerald Poliquin, the NCUA’s Secretary of the Board. In their letter they highlight the need for allowing credit unions to accept supplemental capital for risk-based capital purposes.
Today the Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing entitled, “Status of the Housing Finance System after Nine Years of Conservatorship.” Prior to the hearing, CUNA sent a letter to Chairman Crapo and Ranking Member Brown highlighting credit union’s interest in the current and future structure of the housing finance system.
As many of you are aware, Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the CFPB certain data on credit applications by women-owned, minority-owned, and small businesses. This is one of the last remaining required rulemakings in the Dodd-Frank Act. You may also recall that at Director Cordray was criticized at a recent House Financial Services Committee hearing by Chairman Hensarling for not proceeding more quickly to issue a regulation implementing Section 1071.
Earlier this week, the Nebraska State Legislature passed a number of amendments to their State Credit Union Act. While the legislation currently awaits Governor Pete Ricketts signature, it is expected to become law later this month.
Earlier this week, Senator Robert Menendez of New Jersey circulated a Dear Colleague to his fellow Senators asking Senate appropriators to allocate the same level of funding for the CDFI program in fiscal year 2018 as it received in FY 2017.
Today President Trump signed a cybersecurity executive order. The executive order requires reviews of the federal government’s cybersecurity vulnerabilities and directing adoption of specific security practices. Specifically, it requires all federal agencies to adopt the NIST Cybersecurity Framework as a roadmap for a risk management review. This review must be conducted within 90 days with the ultimate goal of modernizing and protecting federal agency’s IT infrastructure.
Today, CUNA and the Defense Credit Union Council (DCUC) sent a letter to the Acting Director of Financial Readiness of the U.S. Department of Defense in regards to the impact of the Military Lending Act Regulations on credit union lending.
While, eight states and the District of Columbia have legalized recreational marijuana by voter referendum; earlier this week, Vermont’s Legislature becomes the first in the nation to approve a recreational marijuana legalization bill, S. 22. The measure will now be considered by Governor Phil Scott. If signed, it would become effective July 1, 2018.
Yesterday, the Senate Banking, Housing, and Urban Affairs held a hearing to discuss the status of the housing finance system. The lone witness was Mel Watt, Director of the Federal Housing Finance Agency (FHFA), which oversees Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Prior to the hearing, CUNA sent a letter highlighting credit unions’ interest in the current and future structure of the housing finance system.
The House is expected to consider “Probation Officer Protection Act of 2017” (H.R. 1039) and “Thin Blue Line Act” (H.R. 115). The Senate will consider the nomination Jeffrey Rosen to be Deputy Secretary of Transportation and Rachel Brand to be Associate Attorney General.
The House Small Business Committee will hold a hearing today to discuss the Small Business Administrations (SBA) 7(a) Loan Program. Prior to today’s hearing, CUNA sent a letter to Chairman Steve Chabot and Ranking Member Nydia Velázquez to remind them how active credit unions are with SBA loan programs.
This morning the House Education and Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions will hold a hearing to discuss regulatory barriers facing workers and families saving for retirement. Prior to today’s hearing, CUNA sent a letter to the Subcommittee’s Chairman Tim Walberg and Ranking Member Gregorio Sablan.
Protecting the credit union tax status is one of CUNA’s highest priorities. The House Ways and Means Committee is holding a hearing today to discuss how tax reform will grow the economy and create jobs. Prior to the hearing, CUNA sent a letter to the leadership of the Committee, Chairman Kevin Brady and Ranking Member Richard Neal, urging the Committee to protect the federal tax status of credit unions in the context of comprehensive tax reform.
Earlier today, CUNA’s Senior Director of Advocacy and Counsel, Leah Dempsey, submitted a comment letter in response to the CFPB’s Request for Information concerning the use of alternative data in the credit process. The CFPB is seeking information as to whether lenders are interested in using alternative data like rent, utility payments, etc. to determine credit worthiness. These types of payments, which are not usually included in credit bureau calculations could help credit invisible individuals obtain mortgages and other credit.
The CFPB will have to defend its constitutionality yet again. Earlier this week, the U.S. Court of Appeals for the Ninth Circuit gave D and D Marketing Inc. of California permission to appeal a November 2016 decision.
Earlier this week, the Supreme Court ruled on a Fair Debt Collection Practices Act question. In the case, Midland Funding, LLC v. Johnson, the Court held that the filing of a proof of claim that is obviously time barred is not a false, deceptive, misleading, unfair or unconscionable debt-collection practice. The ruling reversed a lower court decision, in a 5-3 decision.
Yesterday, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Domestic and International Policy Update,” with Treasury Secretary Steve Mnuchin as the solo witness. During the hearing, Members discussed the future of Fannie Mae and Freddie Mac, housing finance reform, financial regulation, community banks and credit unions, and tax reform.
Today, CUNA’s Senior Director of Advocacy and Counsel, Luke Martone sent a letter to the Consumer Financial Protection Bureau in regard to their assessment of the remittance transfer rule. As the CFPB does their mandatory review of the rule, CUNA urges the Bureau to increase the threshold from 100 to 1,000 remittances annually.
The Department of Labor (DOL) Secretary Alexander Acosta published an Opinion piece in the Wall Street Journal this week stating that there is no legal precedent to change the June 9 applicability date for the Fiduciary Rule. He wrote, “We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed.”
Yesterday, the Office of Management and Budget (OMB) sent the Administration’s proposed fiscal year 2018 budget to Congress. Similar to the President’s FY 2017 budget, the Community Development Financial Institutions Fund (CDFIF) was again zeroed out, and unfortunately the NCUA’s Community Development Revolving Loan Fund (CDRFL) was also zeroed out this time around. These cuts in FY 18 would amount to $248 million and $2 million, respectively. That is a relatively small sum in a $4.1 trillion proposed budget that includes $57.3 billion in cuts to various domestic discretionary spending programs.
At the behest of the credit unions leagues in Maine and North Carolina, bills granting credit unions parity were passed by legislatures in both states and now await signatures from the governors.
Yesterday, CUNA joined a number of trade associations in sending a letter to the Consumer Financial Protection Bureau (CFPB) in order to comment on the current timeframe of their “Request for Information Regarding the Small Business Lending Market” (RFI). The RFI is the first step in the rulemaking process, but the CFPB has imposed a very short comment deadline of July 14, 2017. CUNA and the other trade associations urged the CFPB to extend the comment period 60 days past the current deadline to September 12, 2017.
Earlier today, CUNA and the National Credit Union Foundation attended the Treasury’s Financial Literacy and Education Commission’s public meeting. The Commission was established in 2003 under the Fair and Accurate Credit Transactions Act and is comprised of 19 federal agencies, including the NCUA. They were tasked with developing a national financial education website and a national strategy on financial education.
In a letter to CFPB Director Richard Cordray, NCUA Chairman McWatters highlighted rules and policymakings the CFPB should reconsider to account for the different size and structure of credit unions. It specifically notes that rules can be particularly burdensome to smaller credit unions, who have an average of eight employees – specifically remarking that it can be a struggle to stay abreast of complex and evolving compliance requirements without the retention of often cost prohibitive counsel, accountants, financial advisors, and other professionals.
CUNA was present today as oral arguments took place in the U.S. Court of Appeals for the District of Columbia Circuit in the PHH Corp. v. CFPB case. At issue, among other questions was the constitutionality of the CFPB with its independent director appointed for a five-year term and only removable by the President “for cause”. The original three-judge panel opinion removed the “for cause” requirement declaring the structure unconstitutional.
CUNA’s Senior Director of Advocacy and Counsel, Andy Price, sent a letter to the Consumer Financial Protection Bureau in regards to the Proposed Rule on Technical Corrections and Clarifying Amendments to the Home Mortgage Disclosure (Regulation C) October 2015 Final Rule.
Representative Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, announced the language repealing the Durbin Amendment would be removed from the Financial CHOICE Act. Unfortunately, the CHOICE Act did not represent the right opportunity for repealing Durbin’s price controls and routing requirements.
Earlier today, CUNA attended the NCUA’s monthly board meeting. During the public session, the NCUA received the Corporate Stabilization Fund Quarterly Report and approved three Proposed Rules on – Appeals Procedures, the Supervisory Review Committee, and Voluntary Mergers of Federal Credit Unions. The closed portion of the meeting contained three Supervisory Actions.
Earlier this spring, AAA released a study stating one-third of American car owners cannot afford surprise repairs of $500-600 on their automobiles. While AAA was surprised by these results, the National Credit Union Foundation has also found that two-thirds of Americas are living paycheck to paycheck and more than half of Americans have no savings to withstand an economic set back – like a broken-down car or a trip to the emergency room.
The CFPB released its intent to hold a public comment period to assess the effectiveness of the Ability-to-Repay/Qualified Mortgage rule (ATR/QM rule).
The American Bankers Association (ABA) filed a motion for summary judgment Friday in its suit against NCUA and its revised membership (FOM) rule. The ABA filed the lawsuit in U.S. District Court for the District of Columbia last December contending that the FOM rule finalized in October 2016 “expands the field of membership of community-based credit unions far beyond the limits imposed by Congress and previously recognized by NCUA.”
CUNA and several credit unions met yesterday with the CFPB to discuss the recently released Request for Information (RFI) regarding the small business lending market. This RFI is the pre-rule stage for implementing Section 1071 of the Dodd-Frank Reform and Consumer Protection Act that amends the Equal Credit Opportunity Act requiring financial institutions to compile and submit information concerning credit applications made by women-owned, minority-owned, and small businesses.
The National Credit Union Administration joined other regulatory agencies to take steps to address the growing concerns credit unions, especially in rural areas, face when an appraisal is needed.
CUNA sent CFPB Director Cordray a detailed list of suggestions, accompanied by a letter, highlighting the ways the CFPB’s rulemaking have adversely affected the way credit unions operate and serve their members. In addition to outlining the issues, CUNA also included recommendations on how the CFPB should improve its regulations and rulemakings to provide much needed relief to credit unions and their members.
The Telephone Consumer Protection Act (TCPA) has added a number of compliance burdens to credit unions and has adversely affected the way credit unions can communicate with the members they serve.
On June 8, the Senate Banking Committee will hold a hearing titled “Fostering Economic Growth: The Role of Financial Institutions in Local Communities.” Dallas Bergl, CEO of INOVA FCU and CUNA Board Member, will be a witness at the hearing.
The House and Senate are both in session this week after their Memorial Day district work period.
Tomorrow, the House Financial Services Committee will hold a hearing entitled, “Flood Insurance Reform: A Taxpayer’s Perspective.” Earlier today, CUNA sent a letter supporting the reauthorization of the National Flood Insurance Program (NFIP) to Chairman Hensarling and Ranking Member Waters. At the beginning of May, the Senate Banking Committee also met to discuss the Reauthorization of the NFIP which is set to expire in September.
CUNA sent a letter of support to Representative Luetkemeyer for his recently introduced legislation, H.R. 2706, the Financial Institution Customer Protection Act of 2017.
The Small Business Administration’s Office of Advocacy has announced they will host a Financial Issues Roundtable on June 26th at 2:00 PM (ET) at their office in Washington, D.C.
CUNA filed a letter with the CFPB providing information on the credit card market in response to the CFPB’s request for information (RFI).
CUNA has issued its Comment Call on NCUA’s proposed rule proposed rule to revise the procedures a Federal Credit Union (FCU) must follow to merge voluntarily with another credit union.
The Senate Banking, Housing, and Urban Development Committee hearing on Fostering Economic Growth: the Role of Financial Institutions in Local Communities just wrapped and CUNA’s witness Dallas Bergl did a great job representing America’s Credit Unions!
The Maine Legislature voted overwhelmingly in favor of overriding Governor Le Page's veto of L.D. 1055 - An Act to Update the State Credit Union Charter. On Tuesday, the House voted 141-5 in support of overriding the veto, and the Senate voted unanimously today to override the veto.
Recently, the Connecticut League was instrumental in Governor Malloy signing legislation, H. 6520, that will further enhance the ability of smaller Connecticut financial institutions to invest in local communities and provide financial services in under-served markets.
The House has passed H.R. 10 – the Financial CHOICE Act by a partisan vote of 233-186. Prior to today’s vote, CUNA sent a letter to House Leadership thanking them for considering the legislation and urging Members to vote in favor of passage.
Yesterday, the CFPB announced it would be granting CUNA’s request for a 60-day extension to the comment period for their Request for Information (RFI) Regarding the Small Business Lending Market. The new deadline will be September 17, 2017, rather than the original July 14, 2017.
On Tuesday, June 13 the House Judiciary Subcommittee on the Constitution and Civil Justice is holding a hearing about the Telephone Consumer Protection Act (TCPA) lawsuit abuse. CUNA plans to submit a letter for the record of the hearing outlining credit union concerns with litigation abuse.
This week Secretary Alexander Acosta stated that the Department of Labor (DOL) will issue a Request for Information (RFI) in the next few weeks seeking input on its new Overtime rule. The rule increased the threshold for overtime pay eligibility by approximately double the previous rate, from $23,600 annually to $47,476 annually. There is currently litigation, which has halted the overtime rule from going into effect.
At the Consumer Advisory Board (CAB) meeting at the CFPB this week, Director Cordray indicated that the debt collection proposals that were discussed in a SBREFA panel last August could be altered. He noted that the CFPB has now decided to consolidate all the issues of right consumer, right amount into the separate rule we will be developing for first-party creditors.
The U.S. Treasury released a report titled, “A Financial System That Creates Economic Opportunities Banks and Credit Unions.” The report was issued in response to Executive Order 13772 on Core Principles for Regulating the United States Financial System. A number of credit unions and CUNA staff met with Treasury in April to outline areas where regulatory burdens are harming the ability of credit unions to serve their members. Much of what was discussed in that meeting and in follow-up letters sent afterwards is reflected in the Treasury’s report. CUNA appreciates that Treasury listened to, and understands that changes should be made to allow them to have greater ability to provide members with safe and affordable products and services.
CUNA filed its comment letter today in response to the Department of Housing and Urban Development’s request for information to implement Executive Orders 13771 on Reducing Regulation and Controlling Regulatory Costs and Order 13777 on Enforcing the Regulatory Reform Agenda. HUD requested comments in identifying existing regulations that may be outdated, ineffective, or excessively burdensome.
Today, CUNA sent a letter to Senators Rounds, Heitkamp, Tester, Hoeven, Donnelly and Kennedy thanking them for sponsoring S. 1310, The Home Mortgage Disclosure Adjustment Act.
The NCUA released the agenda for their June Board meeting. This meeting is scheduled for Friday, June 23 at 10:00 AM (previously scheduled for June 22) and will be held at the NCUA’s headquarters in Alexandria, VA.
Prior to the House Judiciary Committee’s Constitutions and Civil Justice Subcommittee hearing on “Lawsuit Abuse and the Telephone Consumer Protection Act” (TCPA), CUNA sent a letter to Chairman Steve King and Ranking Member Steve Cohen that was entered into the record.
Today, the CFPB issued proposed changes to the prepaid accounts final rule published last November. The final rule requires financial institutions to limit consumers’ losses when funds are stolen or cards are lost, investigate and resolve errors, provide free and easy access to account information, and give prepaid consumers new “Know Before You Owe” disclosures.
On his regulation blog, Henry Meier, New York Credit Union Association’s General Counsel, recently discussed the need for debt collectors and also posted about the Federal Reserve raising the Federal Funds Rate.
The Small Business Administration’s Office of Advocacy has announced they will host a Financial Issues Roundtable on June 26th at 2:00 PM (ET) at their office in Washington, D.C.
Yesterday, the Senate Foreign Relations Committee held its confirmation hearing for Mark Green, former Member of Congress from Wisconsin, for the top spot at the U.S. Agency for International Development (USAID).
Today, CUNA sent letters of support for the NCUA’s Community Development Revolving Loan Fund (CDRFL) to members of both the House and Senate Appropriations Committees. The letter urges Congress to fully fund the CDRFL program at $2 million, which was zeroed out in the President’s proposed FY 2018 budget.
The House and Senate are both in Session this week.
On January 30, 2017, the President signed Executive Order 13771, Reducing Regulation and Controlling Regulatory Costs, to direct agencies to eliminate two regulations for each new regulation issued and to limit costs for this fiscal year to zero. On February 24, 2017, the President issued Executive Order 13777, Enforcing the Regulatory Reform Agenda, which requires agencies to convene a regulatory reform task force to assist in the implementation of Executive Order 13771.
CUNA sent letters to both the House and Senate Appropriations Committee, urging Congress to fully fund the Community Development Financial Institution (CDFI) Fund at $248 million in FY 2018. The President’s proposed FY 2018 budget zeros out both the CDFI Fund and the Community Development Revolving Loan Fund (CDRLF).
The Senate Banking, Housing and Urban Affairs Committee will hold a hearing entitled, “Fostering Economic Growth: Regulator Perspective.” The hearing’s witness list includes NCUA’s Acting Chairman Mark McWatters along with the FDIC Chairman, a Member of the Board of Governors of the Federal Reserve System, the Acting Comptroller of the Office of the Comptroller of the Currency, and Commissioner of the Texas Department of Banking.
The Small Business Administration’s Office of Advocacy will be hosting two regulatory reform roundtables in Idaho, the first in Boise on July 11th and the second in Coeur d’Alene on July 13th.
CUNA joined a number of other financial services trade associations in sending a letter to Leadership of the House and Senate Appropriation’s Financial Services and General Government Subcommittees to express strong support for the inclusion of language that would transition the structure of the CFPB to a five-person bipartisan commission.
The NCUA filed a cross-motion for summary judgment and an opposition to the American Bankers Association’s (ABA) motion for summary judgement yesterday in the ABA’s lawsuit against the NCUA.
Earlier today CUNA attended the NCUA's June Board Meeting. During the meeting, the NCUA adopted a Final Rule on the Statutory Inflation of Civil Money Penalties, adopted a Final Rule on Freedom of Information Act, adopted a Final Rule on Safe Harbor, issued a Proposed Rule on Corporate Credit Unions, approved Request for Comments on the Overhead Transfer Rate Methodology, and received a Board Briefing on the Enterprise Solution Modernization Program.
The Senate Banking, Housing and Urban Affairs Committee held a hearing entitled, “Fostering Economic Growth: Regulator Perspective.”
In a letter to the Department of Defense concerning the implementation of the Department of Defense’s amended Military Lending Act (MLA) Regulation, CUNA and the American Bankers Association, the American Financial Services Association, the Association of Military Banks of America, the Consumer Bankers Association, the Independent Community Bankers of America, and the National Association of Federally-Insured Credit Unions outlined ways to improve upon unintended negative consequences of the rule with suggested recommendations and clarifications
Both Houses of Congress are in session this week and are expected to recess Friday for the Independence Day work period. Last week, the Senate released its proposed legislation to repeal and replace Obamacare. The Republicans can only lose two GOP Senators on the vote for the bill in order for it to pass the chamber. Five Republican Senators (Cruz, Lee, Heller, Paul, and Johnson) have come out against the bill as written. As no Democratic support is expected, the bill is likely doomed without significant changes.
CUNA staff attended an SBA Office of Advocacy Roundtable this week to discuss the Dodd-Frank required assessment of CFPB mortgage rules and the Small Business Lending Request for Information. In addition to SBA Office of Advocacy staff, staff from the CFPB, the Federal Reserve, and the House Small Business Committee also attended. During the roundtable, the group discussed ideas for reducing regulatory burdens on small entities, such as credit unions.
Chairman McWatters has been the Acting Chairman of the NCUA since the middle of January, but that changed on Tuesday when President Trump removed “Acting” from his title and named him Chairman of the NCUA Board.
The Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit held a hearing today entitled, “Examining the BSA/AML Regulatory Compliance Regime.” Faith Lleva Anderson, SVP and General Counsel for American Airlines Federal Credit Union, was a witness on behalf of CUNA. Ms. Anderson also serves on the Consumer Protection Subcommittee for CUNA.
In partnership with the World Council of Credit Unions (WOCCU), CUNA sent a letter to Appropriations Committee and Subcommittee leadership in both the House and Senate.
The House Appropriations Subcommittee on Financial Services and General Government will consider its FY2018 Appropriations bill this afternoon. The Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF) both fall under the subcommittee’s appropriations jurisdiction.
CUNA, along with the CUNA Mutual and NAFCU, filed an amicus brief in defense of NCUA’s revised Field of Membership (FOM) rule – the American Bankers Association brought suit against the rule at the end of 2016. The brief supports NCUA’s cross-motion for summary judgement and has been filed with the U.S. District Court for the District of Columbia.
In a recent article, Leah Dempsey, Senior Director of Advocacy and Counsel outlines, “The Current State of the Telephone Consumer Protection Act.” In the article, Dempsey notes that new leadership in place at the Federal Communications Commission (FCC or Commission) and ongoing litigation challenging aspects of its July 2015 Omnibus Ruling and Order (2015 Order or Order) concerning the Telephone Consumer Protection Act.
Last week the Department of Labor sent a Request for Information (RFI) to the OMB for the overtime rule which was finalized in 2016. CUNA previously commented on this rule and has been following the litigation surrounding it, which led to a nationwide injunction of the rule in December 2016.
Last week, an Ohio League-championed budget bill that includes several provisions that would impact credit unions, including public deposits, a Good Funds correction and remote notarization was signed by Governor Kasich.
The Consumer Financial Protection Bureau (CFPB) announced the appointment of four credit union professionals to the Credit Union Advisory Council (CUAC).
Earlier this week, NCUA Chairman McWatters sent another letter to CFPB Director Cordray. The letter requests that the CFPB provide an exemption for credit unions with more than $10 billion in assets from the CFPB’s examination and enforcement authority.
The summer conference frenzy kicks off with the Iowa Credit Union League serving as a sponsor of the 2017 Midwestern Legislative Conference Annual Meeting, held this week in Des Moines.
Congress was out of session last week and both the House of Representatives and the Senate return this week for a busy legislative schedule. Intrigue surrounds whether Senate Majority Leader Mitch McConnell (R-KY) has enough votes to pass a bill to “repeal and replace” Obamacare.
In June, Senators Rounds, Heitkamp, Tester, Hoeven, Donnelly, and Kennedy introduced S. 1310, the Home Mortgage Disclosure Adjustment Act. If enacted, S. 1310 would raise the threshold that mandates the reporting requirements to 500 closed-end and 500 open-end mortgages. This legislation would provide much needed relief to credit unions, especially to the smaller institutions.
The Consumer Financial Protection Bureau (CFPB) finalized its rule on arbitration. While CUNA is currently analyzing the nearly 800-page final rule, we are disappointed that the CFPB continues to apply new rules to credit unions where there is no evidence of consumer abuse by credit unions.
The Financial Services Subcommittee on Financial Institutions and Consumer Credit just wrapped their hearing where they examined legislative proposals to provide targeted relief to community financial institutions. America’s credit unions had a seat at the table with Rick Nichols, President and CEO of River Region Credit Union, testifying before the committee.
The NCUA released the agenda for their July open Board meeting. This meeting is scheduled for Thursday, July 20 at 10:00 AM and will be held at the NCUA’s headquarters in Alexandria, VA.
NCUA just announced that the agency plans to reorganize its operations. The agency will consolidate the five regional offices into three by closing the Albany, New York, and Atlanta, Georgia offices and eliminate four of the agency’s five leased facilities.
Wow - what a week! Even by Washington DC standards, this week was dramatic. The House of Representatives has left town and will reconvene September 5th. Upon returning, we expect the House to consider the remaining eight appropriations bills that remain after passage of the first four bills last week. No significant committee action of interest to credit unions is expected to be considered this week in the Senate.
Today, the CFPB issued a final rule that temporarily increases the threshold for collecting and reporting HELOC data under HMDA. Under the Regulation C rules that are scheduled to take effect in January 2018, credit unions and other financial institutions would have been required to report HELOCs if they made 100 such loans in each of the last two years.
Today, the CFPB announced a change to the process for submitting questions to the Bureau on regulations.
Earlier this week, CUNA sent a letter to Representative Tom Emmer thanking him for his introduction of H.R. 2954 – the Home Mortgage Disclosure Adjustment Act. The CFPB finalized amendments to Regulation C that will significantly increase the amount of data mortgage lenders will need to provide.
Congress heard from credit unions on behalf of the Community Development Financial Institution (CDFI) Fund this week when two letters were sent from CUNA and from CDFI-designated credit unions throughout the country.
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