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The House will consider H.R. 7, the Paycheck Fairness Act and H. Res. 124, “Expressing opposition to banning service in the Armed Forces by openly transgender individuals.”
The Senate is expected to consider Bridget S. Bade, to be United States Circuit Judge for the Ninth Circuit. The Senate may also vote on S.J.Res.8, a joint resolution “recognizing the duty of the Federal Government to create a Green New Deal,” as well as H.R. 268, a bill to make supplemental appropriations.
The Department of Labor (DOL) published its proposed overtime rule Friday. Under the proposal, employees with a salary level of $35,308 per year (up from the current $23,660 per year) must be paid overtime if they work more than 40 hours per week.
The DOL previously finalized an overtime rule in 2016, but a federal judge blocked its implementation in November 2016. That rule would have raised the threshold to $47,476 annually.
CUNA had expressed concerns about this previous DOL rule, warning that the threshold change would magnify regulatory burdens faced by credit unions and could negatively impact credit union members by potentially forcing changes in employment situations.
CUNA wrote to the Senate Banking Committee leadership in response to an invitation for stakeholder feedback on collection, use and protection of personal information by financial regulators and private companies.
“Congress should not expect any data privacy law it may enact to succeed in providing the desired level of privacy if such legislation does not also require all businesses and originations that collect, use and house personally identifiable information (PII) to protect that data consistent with strong, federal security requirements,” the letter reads. “A federal data security standard is essential to provide Americans with the comfort and confidence that the information that they share with businesses and organizations will remain private and secure.”
As the Senate Banking Committee has jurisdiction over financial institutions, CUNA urges it to “work with other committees and the administration to address consumer data privacy and data security so that all Americans can feel confident that their personal information is protected from breach and will not be misused by any company that possesses it.”
CUNA filed its comments with the Federal Housing Finance Agency on its proposed parameters for the Enterprises Validation and Approval of Credit Score Models. The proposal is in direct response to language in S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, designed to increase credit score competition in the mortgage market. CUNA’s comment noted that increased market competition in the credit-score industry could be beneficial to both consumers and lenders because it can improve efficiency, decrease pricing, and potentially expand the market of consumers for mortgage products. The comment also acknowledged, however, that the frequent modification of the GSEs credit-scoring models or a requirement that they use multiple models at the same time could discourage competition in the lending market by increasing costs for smaller lenders less capable of quickly and cost-effectively absorbing those changes into their own underwriting systems or paying the resulting increased prices to access the systems of the third-party vendors they rely upon. Ultimately,
CUNA acknowledged the FHFA’s recognition of the need for cost-benefit analysis as a core component of its proposed validation and approval process. But the comment expressed concern about the adequacy of the proposed cost-benefit analysis because it only vaguely, if at all, referenced lender implementation costs as a factor for consideration. Going forward, CUNA urged the FHFA to adopt a proposal that directly required lender implementation costs to serve as a consideration in the analysis.
The President delivered the remainder of his Fiscal Year 2020 budget to Congress. The Administration’s budget is an explanation of its spending priorities and does not have the force of law.
The president’s budget always has a section, as required by law, in which Treasury rescores all tax expenditures, including the ten-year cumulative “cost” of the credit union “tax expenditure.” Basic scoring off the tax expenditure is the credit union movement’s retained earnings multiplied by the corporate income tax rate. In the 2017 tax reform law, the corporate rate was lowered from 35% to 21%. That likely accounts for the drop in the “cost” of the credit union tax expenditure … $1.8 billion in 2019.
The budget sent to Congress recommends the elimination of the Community Development Financial Institutions (CDFI) Fund in FY 2020. This was the same recommendation for FY 2017 and 2018. In FY2019, the President recommended spending $14 million to service then current obligations. His budget again requests $14 million to administer the Fund’s outstanding loan and grant obligations.
The CFPB announced several amendments to its advisory committee charters, including for the Credit Union Advisory Council (CUAC). The CFPB’s other advisory committees are the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), and Academic Research Council (ARC).
According to the CFPB’s release, the councils will “expand their focus to broad policy matters and increase the frequency of in-person meetings from two times a year to three times a year.” In addition, the membership terms will be extended from a one-year term to two-year terms, and the terms will be staggered. For existing CUAC members, their one-year term will expire in September 2019. However, a one-year term extension will be provided to half of the current members “in order to achieve the staggered terms and ensure continuity.”
The changes are the result of CFPB Director Kathy Kraninger’s solicitation of feedback from current and former advisory committee members during a three-month listening tour. CUNA advocated for the CFPB to preserve the CUAC as a valuable resources and called on the Bureau to extend the members terms in order to provide stability to the council and ensure the members have the opportunity to gain experience in the Council’s process.
In its release, the CFPB also announced that it will begin accepting applications for new council members. The Bureau will accept applications for 45 days, beginning with a notice to be published in the Federal Register.
If you are interested in being nominated by CUNA for a seat on the CUAC, please reach out to Alexander Monterrubio, Senior Director of Advocacy & Counsel at email@example.com.
The CFPB is hosting an webinar on April 9, 2019, highlighting the findings from its new report: Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends.
The webinar will provide key facts, trends, and patterns revealed in Suspicious Activity Reports (SARs) filed by banks, credit unions, money transmitters, and other financial services providers. The presenters will discuss the implications of these findings and next steps.
According to the Bureau, key audiences for this webinar include financial institutions, law enforcement, prosecution, adult protective services, the aging network, and others working to enhance protections for older adults.
The Small Business Administration (SBA) announced several regional roundtables to discuss the Department of Labor’s (DOL) proposed Overtime Rule, which would increase the minimum salary for the “white collar” overtime exemption from $23,660 annually to $35,308 annually. In effect, under the proposal, workers earning under $35,308 annually would be eligible for overtime pay if they work more than 40 hours per week.
The SBA Roundtables will be an opportunity for the SBA to hear directly from credit unions about the potential impact of the proposed rule. Comments on the rule are due 60 days after its publication in the Federal Register (TBD
In another litigation victory for credit unions, the U.S. District Court for the Southern District of Ohio dismissed a lawsuit filed against a federally-chartered credit union based in Dublin, Ohio. The lawsuit alleged the credit union’s website violated the Americans with Disabilities Act (ADA).
CUNA and the Ohio Credit Union League filed an amicus brief in support of the credit union’s motion to dismiss.
Recently, a lot of questions have been raised in the press about whether Senator Elizabeth Warren’s new American Housing Economic Mobility Act of 2019 would increase credit unions’ regulatory burdens—despite removing them from an obligation to comply with the Community Reinvestment Act. Another trade association has specifically claimed that the bill adds new reporting, comment, and hearing requirements that do not presently exist and that they, presumably, oppose.
In response to those questions and claims, CUNA is committed to doing what we have always done: Providing fact-based, accurate, and thoroughly researched insights and analysis that our members can confidently depend upon when reaching their own conclusions.
Accordingly, please see this link to CUNA's comparison chart for Senator Warren’s bill. With it, you’ll be able to compare the bill’s language to the existing regulatory requirements for credit unions and the Financial Services for the Underserved Act of 2017—legislation that the National Association of Federally-Insured Credit Unions, NAFCU, successfully sought to have introduced in the 115th Congress. We believe that once you have an opportunity to view the facts for yourself, you will see why CUNA believes that Senator Warren’s bill is a victory for credit unions---one that eliminates the threat of CRA, codifies existing regulatory requirements, and even lessens the regulatory burdens attached with the expansion of credit unions’ abilities to reach underserved communities.
CUNA's Chief Advocacy Officer - Ryan Donovan sent an email to all 535 Congressional offices reminding them of our message during CUNA GAC: credit unions are different from other financial institutions.
The Senate voted to confirm Rodney Hood and Todd Harper to serve on the NCUA board, giving NCUA a full three-person board for the first time since April 2016.
“CUNA, leagues and credit unions congratulate Rodney Hood and Todd Harper for their confirmation as NCUA board members. We look forward to working with a full, three-person NCUA board on the issues most important to credit unions and their members,” said CUNA President/CEO Jim Nussle. “Both have impressive experience when it comes to working with not-for-profit financial cooperatives, and we’re hopeful the new board will continue NCUA’s modernization efforts to ensure it remains an efficient, effective regulator.”
The Credit Union Advisory Council (CUAC) met in Washington, D.C. on Thursday to advise the CFPB on several issues of importance to credit unions, including HMDA, credit reporting, PACE, and financial literacy. CUNA attended the session.
The members of the CUAC, all of which are CUNA-member credit unions, provided feedback, including calling for the Bureau to consider increasing HMDA reporting thresholds and reducing the data set after its substantial expansion in the 2015 HMDA Rule. In its discussion of credit reporting, the members expressed concern with so-called “credit repair” businesses which often file frivolous disputes of legitimate debts in the hopes of straining a credit union’s resources available to respond.
Today, the NCUA Board received its quarterly briefing on the status of the Share Insurance Fund and adopted a final rule regarding loans to members.
CUNA wrote letters to Senator Warren and to Representatives Richmond, Moore, Cummings and Lee in support of the American Housing and Economic Mobility Act of 2019. This legislation is an updated version of the Senator’s housing legislation, a version of the bill that reflects significant engagement between CUNA, leagues, credit unions and Warren. Unlike the previous version, the American Housing and Economic Mobility Act of 2019 would not require credit unions to comply with the Community Reinvestment Act (CRA).
As stated in the letter, the American Housing and Economic Mobility Act of 2019 is an important effort to improve access to the housing market for members of all communities and, in the process, properly recognizes the distinctions that exist between credit unions and banks when meeting community needs. The legislation rejects a one-size-fits all approach by explicitly excluding credit unions from the Community Reinvestment Act and instead codifying the already existing community outreach, input, and oversight policies that credit unions have been abiding by for more than 20 years under National Credit Union Administration regulations.
“This bill is a shining example of 360-degree advocacy in action. When Senator Warren initially planned to expand CRA and place onerous and duplicative regulations on credit unions, we collaborated with League partners and the Senator to show the many ways that credit unions have been fulfilling requirements to support underserved communities for well over two decades. Recognizing the power that credit unions bring these communities, Senator Warren pivoted to instead codify into law the regulations that have been dictating our actions for many years. We look forward to working with the Senator and other likeminded lawmakers to ensure that credit unions are able to continue serving these communities for the foreseeable future.” – Jim Nussle, CUNA’s President & CEO
CUNA participated in a joint trade meeting with Assistant Attorney General (AAG) Eric Dreiband, head of the Department of Justice’s (DOJ) Civil Rights Division, and Rebecca Bond, Chief of the Disability Rights Section, to discuss the need for formal ADA website accessibility standards. The meeting included several trades from other industries, including restaurants, retail businesses, and banks. CUNA was the only trade representing credit unions to participate in the coalition.
CUNA wrote to Chairwoman Waters and Ranking Member McHenry prior to the Financial Services Committee hearing entitled, “Preparing for the Storm: Reauthorization of the National Flood Insurance Program.”
As stated in the letter, credit unions play an increasingly important role in the housing finance market and, as a result, have a vested interest in the ongoing stability of the National Flood Insurance Program.
CUNA wrote to Chairwoman Waters and Ranking Member McHenry prior to the Committee’s hearing, “Holding Megabanks Accountable: An Examination of Wells Fargo's Pattern of Consumer Abuses.” In the letter, CUNA ensured that the Committee is aware of the credit union difference.
“The importance of having not-for-profit credit unions as vibrant and viable alternatives in the financial services marketplace is as significant today as it has ever been. The fact that this hearing is happening at all provides ample evidence of the need for this alternative in the marketplace. Credit unions provide accessible and affordable basic financial services to people of all means and encourage the equitable distribution of capital across all individuals, families, communities and small businesses.”
CUNA wrote to Chairman Crapo and Ranking Member Brown prior to the Senate Banking Committee’s hearing, “The Consumer Financial Protection Bureau's Semi-Annual Report to Congress.”
Similar to last week’s hearing in the House Financial Services Committee, Director Kraninger faced questions including the payday lending rule, Military Lending Act authority and oversight of the student lending industry.
CUNA wrote to Representatives Zeldin and Gonzales in support of their recently introduced legislation – H.R. 1661, a bill that would amend the Federal Credit Union Act to provide the NCUA with the flexibility to increase loan maturity limits for federal credit unions.
The House will consider H. Con. Res. 24, “Expressing the sense of Congress that the report of Special Counsel Mueller should be made available to the public and to Congress.”
The Senate is expected to consider Paul Matey to be a United States Circuit Judge for the Third Circuit.
The President is expected to partially release his fiscal year 2020 budget outline this week.
CUNA wrote to Representatives Perlmutter, Heck, Stivers, and Davidson in support of their recently introduced legislation - the Secure and Fair Enforcement (SAFE) Banking Act of 2019, which would permit credit unions in states where marijuana is legal to safely serve their members’ related needs.
As stated in the letter, CUNA takes no position on the morality or wisdom of legalizing or decriminalizing medicinal or recreational cannabis at either the state or federal level. However, credit unions operating in states where it is legal have members and member businesses involved in the cannabis market who need access to traditional depository and lending services, the absence of which creates a significant public safety issue.
CUNA's Chief Advocacy Officer, Ryan Donovan, sent an email to all 535 Congressional offices prior to the start of the 2019 Governmental Affairs Conference that kicks off this weekend! In the email, he highlighted a few keys things:
The NCUA board approved a $160.1 million equity distribution from the National Credit Union Share Insurance Fund (NCUSIF) that will be paid to eligible credit unions in the second quarter of 2019. This is the second such distribution from the NCUA. The first, in the amount of $735.7 million, went to credit unions starting in July 2018.
CUNA was the only national credit union trade association to support NCUA closing the Temporary Corporate Credit Union Stabilization Fund in 2017, which led to last year’s distributions.
“We commend NCUA for its prudent stewardship of credit union funds and for recognizing that this money could be best put to use serving credit union members around the country,” said CUNA President/CEO Jim Nussle. “CUNA was the only national credit union trade association advocating for distributions because we know credit unions will put these funds to work for their members.”
CUNA wrote to Chairwoman Waters and Ranking Member McHenry prior to the House Financial Services Committee hearing, “Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau.” This is Director Kraninger’s first time before the Committee since her Confirmation in December.
Earlier in the week, CUNA President/CEO Jim Nussle, Deputy Chief Advocacy Officer Elizabeth Eurgubian and Senior Director of Advocacy and Counsel Alexander Monterrubio met with Director Kathy Kraninger.
In the letter to the Committee, CUNA wrote that the CFPB should examine and modify where necessary its approach to rulemaking.
CUNA wrote to Chairman Portman and Ranking Member Carper prior to the Senate Homeland Security’s Permanent Subcommittee on Investigations hearing entitled, “Examining Private Sector Data Breaches.”
In the letter CUNA wrote that the cornerstone of any new data privacy requirements should be robust data security requirements for entities that collect consumers’ personal information.
“Credit unions have met with members of this committee to detail damage to credit unions and their members from data breaches. The current gaps in data protection and privacy laws hurt consumers and businesses as information is misused by criminals and other actors with malicious intent. Financial institutions are at the vanguard for misuse of stolen data.”
CUNA President/CEO Jim Nussle, Deputy Chief Advocacy Officer Elizabeth Eurgubian and Senior Director of Advocacy and Counsel Alexander Monterrubio met with Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger Today. Kraninger was confirmed as CFPB director in December, and has previously met with CUNA, leagues and credit unions.
“We thank Director Kraninger for her time and attention today as we discussed the unique nature of credit unions, and the bureau can use its exemption authority to move away from one-size-fits-all style rulemaking to benefit 115 million credit union members,” Nussle said. “We anticipate future engagement with the bureau and CUNA, leagues and credit unions going forward as we all share the goal of ensuring consumers have access to safe and affordable financial products and services.”
Kraninger is scheduled to make her first appearance as director before the House Financial Services Committee Thursday, and before the Senate Banking Committee next week.
In addition to the letter CUNA sent to the Financial Accounting Standards Board (FASB) yesterday, CUNA also joined other trades in writing to the U.S. Security and Exchange Commission (SEC) and FASB urging a delay implementation of its current expected credit loss (CECL) standard to ensure there are no unintended consequences.
“We believe it is important to delay implementation of CECL in order to allow for time to conduct a quantitative impact analysis and to consider potential alternatives, while allowing for post-issuance field testing,” the letter reads. “Time for further assessment will also allow regulators to better understand and address the key consequences of any proposal for capital and other regulatory purposes.”
The CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) requesting public comment on Property Assessed Clean Energy (PACE) financing. Last year’s Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) included provisions directing the Bureau to extend certain consumer protections to PACE financing.
According to the ANPR, the “information solicited will enable the Bureau to better understand the market and unique nature of PACE financing. This will help the Bureau formulate proposed regulations that not only would achieve statutory objectives but also would reflect a careful consideration of costs and benefits.”
CUNA filed a comment
letter with the Financial
Accounting Standards Board (FASB) regarding its Targeted Transition Relief proposal
that is intended to ease transition to the credit losses standard (CECL) by
providing the option to measure certain types of assets at fair value.
The House will consider H.R. 1, the For the People Act of 2019.
The Senate is expected to consider Allison Jones Rushing, of North Carolina, to be United States Circuit Judge for the Fourth Circuit.
CUNA and the World Council of Credit Unions (WOCCU) wrote to Chairwoman Nita Lowey and Ranking Member Hal Rogers prior to the Appropriations Subcommittee’s hearing entitled, “Oversight of U.S. Agency for International Development (USAID) Programs and Policies.”
In the letter, CUNA and WOCCU called for a level playing field for smaller contractors, such as credit unions, when it comes to the U.S. Agency for International Development (USAID) prioritizing procurement reforms.
The U.S. District Court for the Western District of Pennsylvania granted preliminary approval of a proposed settlement in the First Choice Federal Credit Union v. The Wendy’s Company, a data breach lawsuit brought by Credit Union National Association (CUNA), Leagues, and credit unions affected by the data breach, on February 26, 2019.
The FHFA released its final rule on the Uniform Mortgage-Backed Security—regulations meant to align Fannie Mae and Freddie Mac Practices to address concerns about the ability of the single security initiative to launch this summer and its impact on the TBA market.
CUNA Chief Advocacy Officer Ryan Donovan wrote to 535 Congressional offices Thursday continuing CUNA’s call for data privacy and security legislation.
The Senate Commerce Committee held a hearing entitled “Policy Principles for a Federal Data Privacy Framework in the United States.”
The Senate Banking Committee voted Tuesday to advance the nominations of Rodney Hood and Todd Harper to serve on the NCUA board, and for Mark Calabria to serve as director of the Federal Housing Finance Agency (FHFA).
The FTC and CFPB reauthorized a memorandum of understanding between the agencies.
The Credit Union Advisory Council (CUAC) will have a meeting on March 14, 2019, at the CFPB’s headquarters in Washington, D.C.
CUNA wrote to the Committee Chairwoman and Ranking Member prior to the hearing in the House Financial Services Committee entitled, “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System,”
Credit reporting agencies (CRAs) play a critical role in the financial lives of Americans as the credit scores and reports they generate are influential metrics for many lending decisions. CUNA raised several concerns among their members in regards to CRAs
CUNA wrote to Chairman Quigley and Ranking Member Graves prior to today’s House Appropriations Subcommittee on Financial Services and General Government hearing entitled, “Leveraging Private Capital for Underserved Communities and Individuals: A Look into Community Development Financial Institutions (CDFIs).”
The Senate Banking Committee advanced nominees for the NCUA Board and the Federal Housing Finance Agency out of the Committee.
Senate Banking Committee is expected to vote on NCUA, FHFA nominations.
The House will consider H.R. 8, the Bipartisan Background Checks Act of 2019; H.R. 1112, the Enhanced Background Checks Act of 2019; and H.J. Res. 46, relating to a national emergency declared by the President on February 15, 2019. The Senate is expected to vote on S. 311, the Born-Alive Abortion Survivors Protection Act. In addition, the Senate may consider the nomination of Eric D. Miller, of Washington, to be United States Circuit Judge for the Ninth Circuit.
CUNA representatives will meet with staff from FCC Chairman Pai’s office to discuss the need to clarify the definition of an autodialer and modernize the TCPA.
CUNA and WOCCU jointly urged the Internal Revenue Service (IRS) to reduce regulatory burden for credit unions in connection with the Foreign Account Tax Compliance Act (FATCA).
CUNA wrote to newly confirmed Attorney General William Barr Tuesday to call attention to the legal threats facing credit unions due to uncertainty with how the Americans With Disabilities Act (ADA) applies to websites.
Rachel Pross, Chief Risk Officer at MAPS CU, Salem, Ore., testified before the House Financial Services Subcommittee on Consumer Protection and Financial Institutions for a hearing entitled "Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses."
This week, the House of Representatives and the Senate are considering a budget deal to avoid another government shutdown, as well as fund the federal government through the end of fiscal year 2019 (September 30, 2018).
The U.S. Senate voted 54-45 to confirm William P. Barr to be the 85th Attorney General of the United States.
On Thursday, February 14th, the Senate Committee on Banking, Housing and Urban Development conducted a hearing on the nominations of: Mr. Bimal Patel, of Georgia, to be an Assistant Secretary of the Treasury; Mr. Todd M. Harper, of Virginia, to be a Member of the National Credit Union Administration Board; The Honorable Rodney Hood, of North Carolina, to be a Member of the National Credit Union Administration Board; and Dr. Mark Anthony Calabria, of Virginia, to be Director of the Federal Housing Finance Agency.
The NCUA Board issued proposals on flood insurance and supervisory audit committees.
The CFPB recently published its Semi-Annual Report to Congress for the period beginning April 1, 2018 and ending September 30, 2018. The report was issued by Director Kathy Kraninger but covers actions taken during Acting Director Mick Mulvaney tenure as the head of the Bureau.
CUNA submitted a letter Monday in response to the Consumer Financial Protection Bureau’s (CFPB) proposal to amend its No-Action Letter (NAL) Policy and create a “Product Sandbox” to facilitate innovation, urging the Bureau avoid creating an uneven playing field.
The Committee on Banking, Housing, and Urban Affairs will meet in open session to conduct a hearing on several nominations including Mr. Todd M. Harper, of Virginia, to be a Member of the National Credit Union Administration Board; The Honorable Rodney Hood, of North Carolina, to be a Member of the National Credit Union Administration Board; and Dr. Mark Anthony Calabria, of Virginia, to be Director of the Federal Housing Finance Agency.
CUNA submitted a letter in response to a joint proposal issued by the Federal Reserve and Consumer Financial Protection Bureau that would make amendments to Regulation CC (which implements the Expedited Funds Availability (EFA) Act) Friday.
Both the House and Senate are in session this week. President Trump and Congressional leaders are continuing negotiations on an agreement to fund the federal government through September 30th, the end of fiscal year 2019. The current Continuing Resolution funds the federal government through February 15th.
Rachel Pross, Chief Risk Officer at MAPS Credit Union in Salem, Oregon will testify on behalf of Credit Union National Association (CUNA) at a hearing on cannabis banking in the House Financial Services Committee (HFSC), Subcommittee on Consumer Protection and Financial Institutions.
CUNA sent a letter to NCUA Chairman McWatters regarding the agency’s efforts to prepare credit unions for compliance with the Financial Accounting Standards Board’s (FASB) updated accounting standard on credit losses (referred to as CECL (current expected credit losses)).
On February 6th, the CFPB issued two proposed rules to amend provisions of its 2017 final rule on “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (Payday Rule).
Credit Union National Association (CUNA) calls on policymakers to create a national data security framework.
President Donald Trump nominated Todd Harper to serve as an NCUA board member Friday, February 1st.
On January 31, 2019, the NCUA Board voted unanimously to approve final rules permitting federally insured credit unions, to accept private flood insurance policies under certain conditions.
Sen. Mike Crapo (R-ID), chair of the Senate Banking Committee, released an outline of his proposal for housing finance reform legislation on Friday.
This week the CFPB issued policy guidance describing modifications that the Bureau intends to apply to the loan-level data that financial institutions report under the Home Mortgage Disclosure Act (HMDA) and Regulation C before the data is disclosed to the public.
CUNA wrote in support of a bill Thursday that would update thresholds for certain reporting thresholds contained in the Bank Secrecy Act (BSA). The bill, H.R. 388, was introduced by Rep. Barry Loudermilk (R-Ga.), and would raise reporting thresholds for institutions filing Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs).
CUNA attended a FASB roundtable on implementation issues associated with the new CECL accounting standard. FASB staff and several Board members facilitated the discussion that focused on a proposal submitted by a group of banks to consider an alternative to the income statement impact of the CECL model.
The U.S. District Court for the Southern District of Texas dismissed a lawsuit filed against a Houston-based state-chartered credit union. The lawsuit alleged the credit union’s website violated the Americans with Disabilities Act (ADA).
In a press release Friday evening, the Consumer Financial Protection Bureau Director Kathleen Kraninger announced leadership changes within the Bureau. These changes announced were: Policy Associate Director for External Affairs; West Regional Director; Acting Chief Communications Officer; Deputy Associate Director for External Affairs; and the Director for the Office of Minority and Women Inclusion.
Both the House and Senate are in session this week. President Trump and Congressional leaders agreed Friday to a deal to reopen the federal government through February 15th. However, the Congress will have to commit to further negotiations with the president on an agreement to fund the federal government through September 30th, the end of fiscal year 2019.
President Donald Trump signed a bill Friday evening funding the government through Feb. 15, ending the partial government shutdown. CUNA President/CEO Jim Nussle thanked America’s credit unions for their efforts serving members who were furloughed.
Credit unions around the country started rolling out offerings to help affected members as soon as the shutdown began, and continued rolling out additional services, such as fee-free payment skip, 0% APR loans and other financial solutions.
CUNA Chief Advocacy Officer Ryan Donovan and Deputy Chief Advocacy Officer Elizabeth Eurgubian participated in a financial services industry roundtable discussion Thursday with Consumer Financial Protection Bureau Director Kathy Kraninger. Kraninger was confirmed as CFPB director in December.
Without having been asked by the government, credit unions are doing the right thing and assisting the federal workers furloughed by the federal government shutdown, CUNA wrote to Rep. Maxine Waters (D-Calif.) Wednesday. Waters, chair of the House Financial Services Committee, reached out to CUNA for information on how credit unions are assisting those affected by the federal government shutdown.
CUNA and the Michigan Credit Union League (MCUL) filed amicus briefs late Tuesday defending two credit unions hit with frivolous lawsuits alleging violations of the Americans with Disabilities Act (ADA). The briefs were filed in the Sixth Circuit Court of Appeals in support of Belle River Community CU, Casco, Mich., and Aeroquip CU, Jackson, Mich., both of which are being sued by the same plaintiff.
On January 22nd, CUNA filed a comment letter with NCUA on fidelity bonds. In the letter, CUNA raises concerns with aspects of NCUA’s proposed regulation.
Both the House and Senate are in session this week. The federal government today enters its 32th day of the partial shutdown. The Congress continues to negotiate with the president on an agreement to fund the federal government through the end of fiscal year 2019.
Director Kraninger wrote to the House and Senate requesting that the CFPB be granted the authority to conduct examinations for compliance with the MLA.
The Ninth Circuit Court of Appeals issued an opinion in Guillermo Robles v. Dominos Pizza LLC, a case involving the ADA as it relates to website accessibility.
The NCUA Board held its first meeting of the year. The Board approved the agency’s 2019 Annual Performance Plan, adopted a final rule on the Civil Money Penalty Statutory Inflation Adjustment, approved a change to the Illinois Member Business Lending Rule, and received a briefing on the agency’s redesigned website.
Senate Republicans and Democrats announced and ratified their committee assignments for the 116th Congress.
On Wednesday, January 16th, the White House re-nominated Rodney Hood to be a member of the NCUA for a term expiring August 2, 2023.
CUNA sent a letter to the Senate Special Committee on Aging ahead of today's hearing entitled, "Fighting Elder Fraud: Progress Made, Work to be Done.”
The Supreme Court of the United States (SCOTUS) declined to accept and hear a case challenging the constitutionality of the CFPB.
CUNA filed a comment letter with NCUA, opposing and supporting various aspects of its FCU bylaws proposal.
Both the House and Senate are in session this week. The federal government today enters its 24th day of the partial shutdown. The Congress continues to negotiate with the president on an agreement to fund the federal government through the end of fiscal year 2019. The House will also consider H.R. 268, the Supplemental Appropriations Act, legislation to fund disaster relief operations. In addition, the Senate will resume consideration of S. 1, the Strengthening America’s Security in the Middle East Act.
America’s credit unions are embodying their structure and mission to ensure their members affected by the government shutdown have access to low- or no-interest loans with generous repayment terms.
The U.S. Court of Appeals for the 9th Circuit held that Fannie Mae is not a “consumer reporting agency” under the FCRA and therefore is not liable under the law.
The CFPB released the assessment reports required by Section 1022(d) of the Dodd-Frank Act for two of its 2013 mortgage rules: the TILA Ability-to-Repay and Qualified Mortgage (ATR/QM) Rule and the RESPA Mortgage Servicing Rule.
NCUA joined with four other federal financial regulators and the Conference of State Bank Supervisors to urge financial institutions to consider efforts to assist workers affected by the federal government shutdown.
In a letter addressed to Chief Executive Officers and Boards of Directors for credit unions, the National Credit Union Administration has outlined it supervisory priority areas for 2019.
CUNA wrote to leadership of the House and Senate Appropriations Committees Monday to include House report language in any final appropriations legislation for fiscal year 2019.
CUNA sent the first in a series of letters to the newly sworn-in 116th Congress.
Both the House and Senate are in session this week. The Congress continues to negotiate with the president on an agreement to fund the federal government through the end of fiscal year 2019.
In addition, the Senate will resume consideration of S. 1, to make improvements to certain defense and security assistance provisions and to authorize the appropriation of funds to Israel, to reauthorize the United States-Jordan Defense Cooperation Act of 2015.
2018 was a watershed year for CUNA/league/credit union
advocacy. Our accomplishments last year during a turbulent political time stand
out over any of the last 20 years of credit union advocacy, making it a story
that deserves to be told. And as we consider all of our 2018 wins, we are ready
more than ever before to take on a new year and new Congress.
The Fourth Circuit of Appeals has ruled in favor of Department of Labor Federal Credit Union (DOL FCU) related to a frivolous lawsuit alleging website noncompliance with the Americans with Disabilities Act (ADA).
In updated guidance issued FEMA announced that “all NFIP insurers have been directed to resume normal operations immediately,” and advised “that the program will be considered operational since December 21, 2018.”
CUNA and the state CU leagues of Wisconsin and Illinois filed an amicus on Thursday, December 20, in the U.S. Court of Appeals for the 7th Circuit. The brief was submitted in support of a credit union facing a lawsuit related to ADA website accessibility.
At midnight on Friday, December 21, 2018, certain federal government agencies and functions shut down as Congressional lawmakers and the president could not come to an agreement over funding for border security.
CFPB Director Kathy Kraninger, in her first official act as director, has cancelled a plan to rebrand the agency as the “Bureau of Consumer Financial Protection” or “BCFP.”
During today’s FASB meeting, Board Chairman Russ Golden announced that FASB will host a public roundtable discussion on implementation issues related to the credit losses standard.
CUNA filed a letter today in response to the Small Business Administration’s proposal to amend the regulations pertaining to Express Loans and Affiliation Standards.
Both the House and Senate are in session this week. The Senate returns today and the House on Wednesday. The Congress passed a two-week continuing resolution that funds the federal government, and authorized the National Flood Insurance Program, for two weeks – until midnight on December 21st. The House and Senate are expected to try to reach an agreement this week on a bill to fund government operations for all or part of the remainder of fiscal year 2018. They may also vote on H.R. 88, the Retirement, Savings, and Other Tax Relief Act of 2018. Or, all or part of H.R. 88 may be included in year-end government funding legislation. The Senate is also scheduled to consider the “First Step Act.”
CUNA filed a comment letter with the Board of Governors of the Federal Reserve System (Fed) on their request for comment regarding potential Fed actions to support interbank settlement of faster payments.
Sen. Mike Rounds (R-S.D) introduced a Senate version of a CUNA-backed bill to delay implementation of NCUA’s risk-based capital (RBC) rule by two years, to January 2021.
CUNA Chief Advocacy Officer Ryan Donovan met with senior administration officials at the White House Tuesday to discuss credit union advocacy priorities for 2019 and beyond.
NCUA will return to its former practice of conducting rolling three-year reviews, and will post updates to its website every six months, following one recommendation from the task force.
CUNA President/CEO Jim Nussle and Chief Advocacy Officer Ryan Donovan were named to The Hill’s list of top lobbyists for 2018. This is the fifth consecutive year Nussle has appeared on the list.
The National Association of Federally-Insured Credit Unions (NAFCU), Credit Union National Association (CUNA) and CUNA Mutual Group jointly filed an amicus brief supporting the National Credit Union Administration (NCUA) in its appeal of the U.S. Court of Appeals for the D.C. Circuit’s decision in the American Bankers Association (ABA) lawsuit that challenged the agency’s field of membership (FOM) rule.
The NCUA Board lowered the Share Insurance Fund Normal Operating Level, reviewed a report from the Regulatory Reform Task Force, received a briefing on blockchain and distributed ledger technology, and approved a technical amendments final rule.
President Trump nominated Mark Calabria to serve as the next permanent director of the Federal Housing Finance Agency (FHFA). Calabria, who currently serves as chief economist to Vice President Mike Pence, is a known figure in the world of housing finance having previously served as Director of Financial Regulation Studies at the Cato Institute, a staffer on the Senate Banking, Housing, and Urban Development Committee, and as Deputy Assistant Secretary for Regulatory Affairs at the Department of Housing and Urban Affairs.
Kathy Kraninger was officially sworn in as the Director of the BCFP by Vice President Mike Pence.
House Ways and Means Committee Chairman Kevin Brady (R-TX) today released a 253-page bill that in many ways mirrors similar legislation he released last month. Last month’s bill was not considered by the full House of Representatives, but we do expect this legislation to be considered by the House this week. H.R. 88, the Retirement, Savings, and Other Tax Relief Act, is a broad bill that includes tax-related disaster relief, tax technical corrections, Internal Revenue Service (IRS) reform, retirement savings, and delay of certain healthcare related taxes.
Today, CUNA filed a comment letter with NCUA regarding its request to OMB to continue with a data collection related to CUSOs. NCUA requires federally insured credit unions to enter into a written agreement with a CUSO that stipulates the CUSO will adhere to certain requirements, such as granting NCUA access to the CUSO’s books and annually reporting directly to NCUA via a CUSO registry.
Both the House and Senate are in session this week. Last week, the Congress passed a two-week continuing resolution that funds the federal government and authorized the National Flood Insurance Program, for two weeks – until midnight on December 21st. The House and Senate may vote on farm legislation, as well as H.R. 88, the Retirement, Savings, and Other Tax Relief Act of 2018. The House had been expected to consider the bill two weeks ago, but member absences forced Congressional leadership to postpone final consideration of the bill.
The FCC has officially established the Office of Economics and Analytics (OEA). The Commission noted the addition of the OEA is intended to “integrate the use of economics and data analysis into the Commission's various rulemakings and other actions in a more comprehensive and thorough manner.”
The BCFP Office of Innovation is slated to issue a proposal in the coming days that would revise its current No-Action Letter Policy.
President Trump signed H.J.Res. 143, legislation to avert a government shutdown and to fund federal government operations through December 21. The only other provision in the legislation is an extension of the authority of the National Flood Insurance Program, also to December 21.
President Trump is expected to nominate William P. Barr to be the next Attorney General of the United States.
CUNA President and CEO Jim Nussle pens an op-ed in CU Times congratulating Kathy Kraninger on her confirmation to lead the Bureau of Consumer Financial Protection.
The NCUA Board will vote on a final rule to make technical amendments to various parts of NCUA’s rules to correct minor errors and update and clarify definitions and other outdated provisions
The Senate confirmed Kathy Kraninger as permanent director of the Bureau of Consumer Financial Protection (BCFP). Kraninger, who served in the Office of Management and Budget, was nominated by President Donald Trump in June to take the place of Acting Director Mick Mulvaney.
The U.S. Department of the Treasury (Treasury) released a report on the future of the United States Postal System (USPS). The report offered several recommendations that would alter the USPS’s business model to increase the sustainability of the system without increasing costs to taxpayers.
Today, CUNA filed a comment letter in response to NCUA’s proposal to amend part 722 on real estate appraisals.
CUNA staff, state credit union leagues, and individual credit unions participated in a Department of Justice (DOJ) roundtable in Washington, D.C. on the Americans with Disabilities Act (ADA).
As a result of a working group established by the U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence and the Federal depository institutions regulators, the Financial Crimes Enforcement Network (FinCEN) and its regulatory partners today issued a joint statement to encourage banks and credit unions to take innovative approaches to combating money laundering, terrorist financing, and other illicit financial threats.
CUNA staff met with leadership at the U.S. Department of Labor (DOL or the Department) to discuss credit unions’ impact on the American labor market, the Department’s latest jobs initiatives, and rulemakings effecting credit unions.
Both the House and Senate are in session this week. With government funding expiring on Friday at midnight, the Congress is expected to focus most of its energy on reaching a spending agreement, either another short-term measure or a bill to finish out fiscal year 2019. In addition, the authorization for the National Flood Insurance Program expires on Friday. Also, the House may vote on H.R. 88, the Retirement, Savings, and Other Tax Relief Act of 2018. The House had been expected to consider the bill last week, but member absences forced Congressional leadership to postpone final consideration of the bill.
The BCFP is nearing a settlement with D&D Marketing, Inc. in a case before the U.S. Court of Appeals for the Ninth Circuit. A settlement could potentially remove one of several lawsuits questioning the constitutionality of the Bureau’s single-director structure.
The BCFP’s Ombudsman’s office released its 2018 annual report. The report, which is required to be developed on an annual basis, summarizes initiatives undertaken by the office in fiscal year 2018.
Nine Members of California’s delegation to the House of Representatives sent a letter yesterday to Acting Director of the Bureau of Consumer Financial Protection Mick Mulvaney, encouraging prompt implementations of regulations required by Section 307 of S. 2155, related to Property Assessed Clean Energy (PACE) lending.
Credit Union National Association (CUNA) wrote to Senate leadership to spotlight the difficulties credit unions face to comply with Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements.
CUNA President and CEO Jim Nussle wrote to Ways and Means Chairman Kevin Brady (R-TX), Ranking Member Richard Neal (D-MA), Senate Finance Committee Chairman Orrin Hatch (R-UT), and Ranking Member Ron Wyden (D-OR) regarding H.R. 88, the Retirement, Savings, and Other Tax Relief Act.
Today, the Federal Housing Finance Agency (FHFA) released its final rule amending requirements of the Affordable Housing Program operated by the Federal Home Loan Banks (FHLBanks).
The BCFP, along with the Federal Reserve Board, updated the dollar thresholds in Regulation Z (Truth in Lending or TILA) and Regulation M (Consumer Leasing) that will apply for determining exempt consumer credit and lease transactions in 2019.
The Bureau is currently searching for an Assistant Director to lead a new Office of Cost Benefit Analysis (OCBA).
CUNA wrote to Senate Majority Leader McConnell and Minority Leader Schumer on Kathy Kraninger's nomination to be the next Director of the Bureau of Consumer and Financial Protection.
The House of Representatives is in session this week, but no schedule has been released. However, the National Flood Insurance Program expires on November 30 and government funding expires December 7. Therefore, it is likely that the House will consider legislation in these areas, as well as possible tax legislation to reform the IRS, extend certain tax provisions, and make technical corrections to last year’s Tax Cuts and Jobs Act.
The Senate reconvenes this week and will consider the nomination of Kathleen Kraninger to be the Director of the Bureau of Consumer Financial Protection.
Credit Union Advisory Council (CUAC) will have a meeting on December 6, 2018, via conference call. During the meeting, the group will discuss artificial intelligence in consumer financial services and consumer access to financial records.
CUNA filed a comment letter with the Office of the Comptroller of the Currency on Modernizing the Regulatory Framework of the Community Reinvestment Act (CRA).
The Financial Accounting Standards Board (FASB) released an update amending the CECL effective date for credit unions and other non-public business entities (PBE).
The SBA’s Office of Advocacy will host a listening session on Monday, December 3, 2018, in Washington, D.C. focused on the Americans with Disabilities Act (ADA).
CUNA participated at a joint trades meeting with BCFP senior staff to discuss the impact of the 2013 Ability-to-Repay and Qualified Mortgage Rule (ATR/QM Rule).
CUNA filed the two attached comment letters with the Federal Housing Finance Agency
At today’s meeting, the NCUA Board was briefed on the status of the Share Insurance Fund, approved the 2019 - 2020 budgets, and issued a proposed rule on fidelity bonds.
The "NCUA HMDA and Consumer Compliance Regulatory Update Webinar" is scheduled for November 14, beginning at 2 p.m. Eastern time. Hosted by the NCUA, the webinar will cover amendments to the Home Mortgage Disclosure Act and other consumer financial protection laws made by the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act.
CUNA released a whitepaper highlighting the 2018 midterm elections impact on credit unions. The in-depth analysis provides details on credit union involvement in the election, what the results mean for Main Street institutions and CUNA’s advocacy plans for the 116th Congress.
This week the House of Representatives returns to consider H.R. 6784, the Manage our Wolves Act. House Republicans are also expected to hold leadership elections this week.
The Senate also returns this week to consider the motion to concur in the House amendment with a further amendment to accompany S.140, Coast Guard Reauthorization. The Senate will also consider the nomination of Michelle Bowman, of Kansas, to be a Member of the Board of Governors of the Federal Reserve System.
CUNA attended the Federal Reserve Board’s latest town hall, held at the Federal Reserve Bank of Minneapolis, to discuss issues surrounding real-time payments. The Fed is currently seeking input through a RFC on potential actions the Federal Reserve can take to support interbank settlement of faster payments.
CUNA filed a comment letter with the National Telecommunications and Information Administration (NTIA or Administration) which is part of the U.S. Department of Commerce in response to the NTIA’s request for comment on “Developing the Administration's Approach to Consumer Privacy.”
CUNA participated in a roundtable led by the Small Business Administration's Office of Advocacy to discuss the latest BCFP rulemaking agenda, which was released last month.
Next week (Nov. 15 at 10 AM ET), the NCUA Board will vote to approve its 2019 - 2020 operating budget.
The Bureau of Consumer Financial Protection (BCFP) and the Federal Housing Finance Agency (FHFA) today released for public use a new loan-level dataset collected through the National Survey of Mortgage Originations (NSMO) that provides insights into borrowers’ experiences in getting a residential mortgage.
The Tax Cuts and Jobs Act of 2017 (TCJA) requires the separate computation of UBIT for tax-exempt organizations with more than one unrelated trade or business. Before the TCJA, when a tax-exempt organization operated more than one unrelated trade or business activity, losses generated by one business could be used to offset income derived from another. Now, losses generated by one unrelated trade or business cannot be used to offset income derived from another unrelated trade or business.
The Tax Cuts and Jobs Act of 2017 (TCJA) imposes an excise tax on certain executive compensation provided by tax-exempt organizations. Tax-exempt entities are now required to pay a 21% excise tax on the five highest paid employees’ compensation that individually exceed $1 million annually.
On October 30th, the Bureau of Consumer and Financial Protection (BCFP) released an updated HMDA Small Entity Compliance Guide to reflect changes made to reporting requirements by the Economic Growth, Regulatory Relief, and Consumer Protection Act (known as S. 2155) and the 2018 HMDA Interpretive Rule.
The Fourth Circuit of Appeals heard arguments in a case involving Department of Labor (DOL) FCU related to a frivolous lawsuit alleging website noncompliance with the Americans with Disabilities Act (ADA).
The BCFP issued a statement announcing an intent to issue a proposal revising the payday rule in January 2019.
The United States Court of the Appeals for the District of Columbia has finally set a briefing schedule for the field of membership litigation appeal. The briefing schedule required NCUA to submit a brief by December 5th with amicus briefs in support of NCUA due 7 days later, on December 12th.
The Bureau of Consumer and Financial Protection (BCFP or the Bureau) released its lookback report on the remittance rule. As a reminder, Section 1022(d) of Dodd-Frank requires the Bureau to conduct these reports within five years after finalizing a major rulemaking. The intent of the report is to evaluate the outcomes of the rule and determine the rule’s effect on the market (intended and unintended).
CUNA filed a follow-up letter to the National Credit Union Association (NCUA) in response to their proposed 2019-2020 budget. This letter reinforces the testimony provided to the NCUA by CUNA's Chief Economist, Mike Schenk, during their budget hearings on October 17th.
The Federal Reserve will host public town hall meetings in its 12 districts in late October and early November to discuss its Faster Payments Settlement Assessment notice in the Federal Register. CUNA continues to be a strong advocate for a secure faster payments system accessible to institutions of all sizes.
MSU Federal Credit Union's (MSUFCU) Chief Lending Officer, Jeff Jackson, has been elected to the Federal Home Loan Bank of Indianapolis (FHLBI) Board of Directors.
Credit Union Legislative Action Council (CULAC), the federal PAC of the Credit Union National Association (CUNA), launched its final independent expenditure (IE) for the 2018 midterm election cycle.
The National Credit Union Administration (NCUA) will host a webinar for credit unions on November 14th where they can learn more about recent changes to the Home Mortgage Disclosure Act and other federal consumer financial protection laws and regulations.
Credit Union National Association (CUNA) continues to seek clarity on several issues under the Telephone Consumer Protection Act (TCPA) to help reduce confusion for credit unions trying to comply with the law. In its reply comments filed to the Federal Communications Commission (FCC) Thursday, CUNA highlighted several credit unions and leagues emphasizing the critical importance of a narrow definition of an automated telephone dialing system (ATDS).
CUNA, the Financial Services Information Sharing and Analysis Center (FS-ISAC), and the Financial Services Sector Coordinating Council (FSSCC) conducted a webinar for credit unions that gave an overview of cyber-exercises and how credit unions could participate in cyber-exercises.
Credit Union Legislative Action Council (CULAC), the federal PAC of the Credit Union National Association (CUNA), launched its first round of independent expenditures (IEs) for the 2018 midterm election cycle. CULAC and CUNA have been the strong political backbone for credit unions for over 40 years, engaging in strategic partisan communications and IEs for nine elections cycles.
Both the House and Senate are in recess until after the midterm elections.
The National Credit Union Administration (NCUA) board voted to approve a final risk-based capital rule, which would secure important regulatory relief for credit unions and maintain an appropriate focus on safety and soundness.
CUNA submitted a comment responding to a FCC Public Notice issued to gather feedback after the Ninth Circuit Court of Appeals decision in Marks vs. Crunch San Diego, LLC. The Ninth Circuit’s ruling in Marks would substantially expand the TCPA definition of an “automatic telephone dialing system” (ATDS).
The Federal Financial Institutions Examination Council (FFIEC) launched the redesigned Bank Secrecy Act/Anti-Money Laundering (BSA/AML) InfoBase website, which is aimed at sharing bank examination procedure information with examiners, financial institutions, the public, and other stakeholders.
The National Credit Union Administration held its budget briefing and Credit Union National Association (CUNA) Chief Economist Mike Schenk testified on behalf of credit unions. Schenk applauded the NCUA decision to merge the Temporary Corporate Credit Union Stabilization fund into the Share Insurance Fund (NCUSIF), totaling $735 million, and urged for the equity distribution to credit unions and their members.
The BCFP released its Fall 2018 rulemaking agenda today. The agenda is a snapshot of the Bureau’s regulatory priorities over the coming months into 2019.
The Regulatory Flexibility Act requires executive branch federal agencies to publish their regulatory agendas twice a year, typically in the fall and spring. As an independent agency, the Bureau voluntarily participates in the Unified Agenda, which is coordinated by the Office of Management and Budget (OMB).
CUNA wrote to the Bureau of Consumer Financial Protection in support of their participation in the Global Financial Innovation Network (GFIN) in response to a document outlining the GFIN collaborative effort, but strongly encourages the bureau encourage the network to ensure a level playing field.
CUNA's Chief Advocacy Officer - Ryan Donovan, wrote an op-ed in the CU Times in response to the NCUA's proposed risk-based capital (RBC) rule. While the proposed RBC ruling is a positive and prudent step forward, the piece further urges the NCUA board to finalize the proposal at Thursday’s meeting.
The Bureau of Consumer Financial Protection has launched a new innovation webpage. Here you can find out how to apply to run a disclosure trial or pitch a pilot and learn more about the Global Financial Innovation Network.
Acting Director Mick Mulvaney announced the BCFP plans to pursue in the near future a rulemaking creating standards for unfair, deceptive, or abusive acts or practices (UDAAP).
The committee and panelists covered the positive and negative repercussions of the technology, the validity of the various key tenants that make blockchain a unique tool, concerns over crime and illicit transfer of funds via cryptocurrencies, and expectations for the future from an economic and regulatory perspective.
Richard Gose, Chief Political Officer, and Jennifer Kelly, Director of State Affairs, attended the State Policy Network’s (SPN) annual conference in Salt Lake City, UT. For the first time, credit union advocates were on hand to explain the credit union difference to state policy leaders. The State Policy Network promotes state-based solutions and coalition efforts to help achieve a national impact.
The article does a disservice to consumers, focusing on the negative experiences of a several credit union members. But credit unions deliver big financial benefits to the 110 million credit union members. CUNA’s latest member benefits report shows that average credit union overdraft fees are lower than banks by around $3.00. Independent market research clearly and consistently shows that credit union pricing is substantially more consumer-friendly than that found at other financial institutions. For example, nearly two-thirds of credit unions offer free checking accounts whereas only 38% of banks do so. Credit unions are seven times more likely than banks to offer free interest-bearing checking accounts. Studies show that bank NSF fees are 10% to 20% higher than those at credit unions.
The NCUA board will vote on finalizing changes to its risk-based capital at its Oct. 18 meeting, according to the agenda released by the agency Thursday. CUNA supports the proposal, but has expressed numerous concerns about the agency’s RBC approach in general.
CUNA hosted a webinar on October 10th with Bureau of Consumer Financial Protection staff on changes to Home Mortgage Disclosure Act (HMDA) reporting requirements. A recording of the webinar is available for free to CUNA members, and will be available shortly.
In an article published by Bloomberg News, it was reported that the Consumer Financial Protection Bureau took only three enforcement actions in the third quarter of 2018 and is on pace for the lowest yearly total in its seven years of existence.
CUNA attended the Senate Commerce Committee hearing with representatives from California and the EU to discuss the implications of the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) on Congress’ efforts to develop a federal framework for consumer data privacy.
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators recognize the serious impact of Hurricane Michael on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.
CUNA filed a letter with the NCUA regarding its proposed amendments to Part 701, Loans to Members and Lines of Credit to Members. The letter supports proposed changes to improve clarity and make compliance easier by reorganizing a few provisions within the regulation.
CUNA will be hosting a webinar in conjunction with the BCFP to discuss technical implementation of the new HMDA rule. In August 2018, the BCFP released the 2018 HMDA Interpretive Rule, which provides partial exemptions for some insured depository institutions and insured credit unions from certain HMDA requirements as a result of the passage of S.2155.
FinCEN and the federal depository institution regulators issued a joint statement on October 3rd to address the benefits of financial institutions entering into collaborative arrangements to help manage their Bank Secrecy Act (BSA) and anti-money laundering (AML) obligations more efficiently and effectively.
The House is in recess until after the November midterm elections.
The Senate is expected to consider executive and judicial nominations.
CUNA attended the Financial Literacy and Education Commission’s public meeting where the Commission reinforced their commitment to new and innovative methods for developing public financial education.
The first rule in achieving success with cyber-incidents is to have a documented response plan. The second rule is to practice that plan. However, knowing how to conduct a cyber-exercise and what resources are available to help practice the plan can be a challenge for credit unions.
Join the Credit Union National Association (CUNA), the Financial Services Information Sharing and Analysis Center (FS-ISAC) and the Financial Services Sector Coordinating Council (FSSCC) on Wednesday, October 17, 2018 for a webinar designed to:
The NCUA along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency issued a joint statement on banks and credit unions sharing resources to improve efficiency and effectiveness of Bank Secrecy Act compliance. Read the press release below and the entire statement via this link.
CUNA's Chief Advocacy Officer - Ryan Donovan, wrote an op-ed in The Hill in response to Senator Warren’s recently introduced legislation that contains a provision placing credit unions under the CRA.
"Sen. Elizabeth Warren’s (D-Mass.) proposal to place credit unions under the Community Reinvestment Act would be a step backward in access to affordable mortgage credit,"
While S. 3503 has a laudable goal, its provision to extend the Community Reinvestment Act (CRA) to credit unions runs counter to the goal of increasing access to credit. On Wednesday, CUNA wrote a letter to Senator Warren and a separate letter to all US Senators opposing Section 203 that would expand the reach of the CRA to credit unions.
The CRA was enacted in 1977 to combat discriminatory bank lending practices. Since it was enacted, Wall Street banks have fought to include credit unions, despite a complete lack of evidence of systematic lending discrimination.
As currently written, Senator Warren’s legislation seeks to impose CRA requirements, which were enacted as a result of bank redlining and disproportionate discriminatory lending practices—explicitly not intended to apply toward credit unions, who by definition, serve their community as a cooperative non-profit entity.
CUNA wrote to Chairman Crapo and Ranking Member Brown prior to the Senate Banking Committee's hearing entitled, "Implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act."
On behalf of America's credit unions, CUNA strongly supported S. 2155 during the legislative process and applauded its enactment into law in May.
The Senate will resume consideration of H.R.302, the five-year reauthorization of the Federal Aviation Administration. The Senate is also expected to vote on H.R. 6, legislation to address opioid abuse.
The House is in recess until November 13.
CUNA wrote to Chairman Leutkemeyer and Ranking Member Clay prior to today's House Financial Services Subcommittee hearing entitled, "Examining Opportunities for Financial Markets in the Digital Era.” While CUNA supports financial technology innovation, it remains concerned about an environment in which consumers would not receive the same protections as they do at financial institutions.
CUNA wrote, “A regulatory scheme that ensures consumers receive the same protections and those offering these services are subject to similar regulations and supervision credit unions and banks is important to safeguard consumers and the banking system."
September 25th was ‘National Register To Vote’ day, so the timing of the new MAP Campaign for Credit Unions Vote is perfect! Did you know that 44% of registered voters are credit union members? That is why we created the website, CreditUnionsVote.com.
The website serves as a resource for people to find out where they can vote, how they can vote early, and/or register to vote, if they are first time voters. Your credit union can participate in the latest MAP Campaign, “Credit Unions Vote.
The Senate Committee on Commerce, Science, and
Transportation met for a hearing entitled: “Examining Safeguards for
Consumer Data Privacy,” which examined the privacy policies of top technology
and communications firms, reviewed the current state of consumer data privacy,
and offered members the opportunity to discuss possible approaches to
safeguarding consumer privacy more effectively.
The Bureau issued a report on its sources of data and the use of that data to achieve its statutory mission. The report was accompanied by a Request for Information (RFI) seeking feedback on the efficiency and effectiveness of the Bureau’s data governance and various data collections. Comments are due 90-days after publication of the RFI in the Federal Register.
The Department of Justice (DOJ) sent a letter to Representative Ted Budd (R-NC) this week regarding website accessibility for public accommodations under the Americans with Disabilities Act (ADA). This letter is a response to the CUNA-supported letter sent on June 20, 2018, by 103 members of Congress calling on DOJ to provide clarity for website accessibility standards.
NCUA announced it will hold a public briefing on the agency’s proposed 2019-2020 budget. The briefing will be held on October 17, at 10 am, at agency headquarters in Alexandria, Virginia.
On October 18, the Bureau of Consumer Financial Protection (BCFP) will hold a town hall in Baton Rouge to discuss preventing elder financial exploitation.
The town hall will feature remarks from Acting Director Mick Mulvaney and Louisiana Attorney General Jeff Landry, as well as participation and comments from consumer groups, industry representatives, state partners, and members of the public.
Senator Elizabeth Warren (D-MA) introduced the American Housing and Economic Mobility Act, which seeks to enhance housing opportunities for traditionally underserved groups and create economic incentives for local governments to eliminate unnecessary land use restrictions. While CUNA agrees with much of the bill’s intent, the legislation would counterproductively harm credit unions by adding an unnecessary layer of examination compliance. The bill actually seeks to impose Community Reinvestment Act (CRA) requirements, which were enacted as a result of bank redlining and disproportionate discriminatory lending practices—explicitly not intended to apply toward credit unions, who by definition, serve their community as a cooperative non-profit entity.
CUNA wrote to Representative Loudermilk in support of his recently introduced legislation, the Financial Reporting Threshold Modernization Act. If enacted, this legislation would provide a “much needed and long overdue” modernization of Bank Secrecy Act (BSA) reporting thresholds.
“In 1970, few ordinary consumer financial transactions exceeded $10,000—the current (and original 1970- designed) trigger for financial institutions to file Currency Transaction Reports (CTRs),” CUNA President/CEO Jim Nussle wrote.
It’s time to brag about the work credit unions
are doing in their communities. CUSocialGood.com has been collecting stories from
credit unions for years, but it’s time to share stories from your lending officers or credit union members who have received a credit
union loan when they could not get one from another financial institution.
We know these stories can be tough to write and submit, but the goal is to collect stories on how credit unions are serving their mission and are responsible lenders.
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On the floor, the Senate will consider the nominations of Jackie Wolcott to be U.S. Representative to the International Atomic Energy Agency AND Wolcott’s nomination to be U.S. Representative to the Vienna Office of the United Nations. The nomination of Peter A. Feldman to be a Commissioner of the Consumer Product Safety Commission (CPSC) will also be considered.
The House of Representatives is expected to vote on three bills collectively known as “Tax Reform 2.0.”
President Trump signed into law the conference report on H.R. 5895, the Energy and Water Development, Military Construction, and Legislative Branch Appropriations Act for Fiscal Year 2019. This three-bill “minibus” is the first fiscal year 2019 appropriations bill to be signed into law.
The 2018 fiscal year ends on September 30. If history is any guide, at least one partial continuing resolution will be necessary to fund government operations that begin on October 1, 2018.
A House and Senate conference committee has agreed to another two-bill FY19 Appropriations “minibus” funding bill that funds the Department of Defense, as well as the Labor, Health and Human Services Appropriations bills. Included in this agreement is a continuing resolution to fund all remaining government operations until December 7th at FY18 levels. This is intended to give Democrats and Republicans in Congress more time to come up with agreement on remaining FY19 appropriations bills. The Senate has passed this second minibus and the House is scheduled to consider it the last week of September.
This week was a busy one on the consumer protection front, as CUNA advocacy engaged Bureau staff on serving credit invisible consumers and regulating PACE loan programs; meanwhile the payday rule litigation continues and the Bureau announced a new office location in Atlanta, Georgia.
CUNA partnered with the Georgia Credit Union Affiliates (GCUA) to continue aggressive nationwide defense of credit unions facing frivolous lawsuits. The organizations filed a brief earlier this week supporting Family First CU, Hapeville, Georgia, which has been sued by a plaintiff alleging website noncompliance with the Americans with Disabilities Act (ADA).
“We are proud to work with the Georgia Credit Union League to demonstrate there is no standing to bring this lawsuit,” said CUNA President/CEO Jim Nussle. “Meritless litigation comes at the direct expense of credit union members and does not advance the spirit of the ADA. CUNA and the leagues will continue to support credit unions affected by frivolous lawsuits and demand letters.”
Credit unions around the country are facing lawsuits due to confusion over how the ADA applies to websites, and CUNA has made finding a solution a top advocacy priority.
The NCUA Board issued a proposed rule that would raise the threshold below which appraisals for non-residential real estate would not be required. Currently, an appraisal is required for non-residential real estate transactions with a market value greater than $250,000. The proposed rule would increase the threshold to $1 million. A written estimate of market value would still be required; the agency is seeking comment on whether a de minimus exemption should also apply to this provision. For a GSE-backed loan, the market value would be determined by the uninsured value. The proposal will be subject to a 60 day comment period.
CUNA wrote to Senator Hatch in support of his recently introduced legislation - the Give Useful Information to Define Effective (GUIDE) Compliance Act. A House version of the bill was introduced by Representatives. Duffy and Perlmutter. The House version passed the House Financial Services Committee last week.
“Credit unions across the country continue to be frustrated with the sluggish issuance of guidance from the Bureau of Consumer Financial Protection (BCFP) which has created uncertainty and ambiguity not only for credit unions, but all industry stakeholders,” the letter reads. “The GUIDE Compliance Act would alleviate this uncertainty by requiring the BCFP to standardize the process of providing guidance that can be relied upon by industry.”
CUNA sent a follow-up letter to the Department of Defense and Office of Management and Budget, seeking resolution to the ongoing issue with Question & Answer 2 (QA2) of the DoD’s December 2017 guidance on the MLA rule.
The Senate Committee on Banking, Housing, and Urban Affairs met for a hearing yesterday entitled “Fintech: Examining Digitization, Data, and Technology.”
Both the Members of the Committee and the witnesses stressed the importance of thoroughly and methodically instituting regulations governing Fintech given the sensitive nature of the information and relationships involved.
CUNA filed a comment letter with the Financial Accounting Standards Board in support of a proposed change to FASB’s CECL (current expected credit loss) accounting standard.
The House of Representatives is in recess until September 25.
The Senate is expected to consider and vote on the “SUPPORT for Patients and Communities Act” (H.R. 6) and “the Patient Right to Know Drug Prices Act” (S.2554).
In addition, the Senate may consider the conference report to H.R. 6157, the Defense, Labor-HHS-Education Appropriations Act for FY 2019. This bill also includes a continuing resolution for all government functions until December 7, 2018 for any government agencies funded by appropriations bills not enacted into law before September 30, 2018, the end of fiscal year 2018.
Eighteen young credit union professionals from around the country made the journey to Washington. D.C. this week to attend our second annual Young Professionals Advocacy Training. The all-day training featured discussions led by CUNA and league staff, a panel featuring Congressional staffers, lessons from outside government affairs professionals, interactive group activities, and congressional meeting prep sessions. Topics covered included best practices for in-district and Capitol Hill meetings, an overview of CUNA’s political program and the role credit union professionals play in advocacy, in addition to networking opportunities. Two important topics stressed throughout the training was the importance of building a relationship with your Members of Congress and their staffs and the importance of storytelling.
The House Financial Services Committee passed two CUNA-supported pieces of legislation – H.R. 5534, Give Useful Information to Define Effective (GUIDE) Compliance Act and H.R. 6743, Consumer Information Notification Requirement Act.
Earlier in the week, CUNA wrote to both of the bills’ sponsors, joined with other trade associations supporting H.R. Luetkemeyer’s data security legislation, and wrote to Committee leadership prior to the mark-up.
The Bureau of Consumer Financial Protection released resources to help consumers prepare financially for disasters and emergencies.
The NCUA Board meeting will meet on Thursday, September 20, at 10am, at NCUA headquarters in Alexandria, Virginia.
The meeting agenda includes:
Following the banking agencies action on April 2, 2018, to increase the threshold for which commercial real estate loans would be exempt from appraisal requirements (from $250,000 to $500,000), credit unions have been anxiously awaiting NCUA action to provide parity for the credit union industry.
CUNA joined other trade organizations requesting an extension of the comment deadline for the Bureau of Consumer Financial Protection’s proposed policy to encourage trial disclosure programs. Specifically requesting the comment deadline be extended an additional 45 days beyond the current October 10th deadline.
“We believe that a limited, 30-day comment period may preclude the development of a sufficiently broad and complete factual record necessary to develop optimal policy action,” the letter reads. “We respectfully recommend that the Bureau extend the comment period 45 days to November 23, 2018.”
Supervisory guidance does not have the force and effect of law, NCUA and other federal financial regulatory agencies said in a joint statement. CUNA supports this unified approach from regulators.
In addition to the NCUA, the statement comes from the Bureau of Consumer Financial Protection, Federal Reserve Board, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency.
The Bureau of Consumer Financial Protection (BCFP) will hold a meeting of its Credit Union Advisory Council on Thursday, September 27th at 9:00 AM. The group is expected to discuss policy issues related to financial technology. This discussion will likely include the recently-issued proposal and request for comment on Trial Disclosure Programs.
Late last week, the BCFP announced the new members of its reconstituted Credit Union Advisory Council (CUAC). All seven of the selected CUAC members are from CUNA-member cred
The House Ways and Means Committee will markup “Tax Reform 2.0”. It consists of a package of three new bills:
NCUA’s Office of Consumer Financial Protection (OCFP) issued an Update with information about the HMDA Interpretive Rule finalized by the BCFP on August 31, 2018. The HMDA Interpretive Rule implemented changes made by S.2155 and became effective on September 7, 2018.
According to the agency, today’s Update “explains the Bureau’s rule, which identifies the data points subject to the new HMDA partial exemptions, describes transactions subject to the partial exemptions, discusses a new alternative to the universal loan identifier, and includes parameters for voluntary reporting.”
CUNA has been focused on potential changes to the housing finance system, sending two letters on the subject: one to the Administration and Congress, signed by other lending trades and housing groups, and a second to the House Financial Services Committee, which held a hearing entitled “A Failure to Act: How a Decade without GSE Reform Has Once Again Put Taxpayers at Risk.”
Congress returns for a truncated work week. Although not public yet, we expect the House Ways and Means Committee to release the text of “Tax Reform 2.0” this week and hold a markup on Thursday. We don’t expect credit unions to be affected directly by the new legislation.
This week, the House of Representatives will consider H.R. 3798, the Save American Workers Act of 2017. This bill repeals the “business mandate” and certain other provisions of the Affordable Care Act of 2009. The House may also consider the conference report to H.R. 5895, the Energy and Water, Legislative Branch, and Military Construction and Veterans Affairs Appropriations Act of 2019.
The Senate will resume consideration of Charles P. Rettig to be Commissioner of the IRS. The Senate may also consider a bill “to ensure that health insurance issuers and group health plans do not prohibit pharmacy providers from providing certain information to enrollees” (S. 2554) as well as a bill to provide for opioid use disorder prevention, recovery, and treatment (H.R. 6).
The Bureau issued a Notice of Proposed Policy Guidance and Request for Comment related to efforts to encourage the creation of Trial Disclosure Programs (TDP) at financial institutions. Feedback is due to the Bureau 30 days after publication in the Federal Register.
The Dodd-Frank Act provided the Bureau the authority to grant certain legal protections to entities that create TDPs through a Bureau-approved process. The intent was to encourage innovation and ensure markets for consumer financial products and services are fair, transparent and competitive.
The BCFP announced the new members of its reconstituted Credit Union Advisory Council (CUAC). All seven of the selected CUAC members are from CUNA-member credit unions.
CUNA actively and outspokenly supported the CUAC as a necessary source of feedback for the Bureau during our discussions with BCFP officials, including Director Mulvaney, and in a white paper submitted in response to the Bureau’s comprehensive RFI process. We thank Director Mulvaney for his decision to adopt our recommendations and preserve the CUAC.
CUNA wrote to Chairman Hensarling and Ranking Member Waters prior to the House Financial Services Committee entitled, "A Failure to Act: How a Decade without GSE Reform Has Once Again Put Taxpayers at Risk.”
In the letter CUNA wrote in support of the creation of an efficient, effective and fair secondary market with equal access for lenders of all sizes. The letter follows up a joint letter CUNA sent earlier in the week to the Committee on government-sponsored entity (GSE) reform.
The Bureau released its 17th edition of Supervisory Highlights. The report profiles observations made during the BCFP's supervision activities between December 2017 and May 2018, roughly the first six months of Mick Mulvaney's tenure as Director.
Six U.S. Senators wrote to Attorney General Jeff Sessions urging the DOJ take action to address the Americans with Disabilities Act (ADA) website accessibility issue.
“We support the ADA and all it stands for,” the letter reads. “But for the ADA to be effective, it must be clear so that law abiding Americans can faithfully follow the law.”
In response to a letter submitted by House Financial Services Committee Financial Institutions Subcommittee Chairman Leutkemeyer (R-OK), NCUA Chairman McWatters issued a formal response, detailing the agency’s ongoing plan for supervision of credit unions. The letter highlights specific areas of targeted regulatory relief and transparency initiatives.
CUNA CEO Jim Nussle sent a letter to the NCUA Board, expressing hope that the agency will consider applying an extended examination cycle (from 12 to 18 months) for credit unions under $3 billion, given such relief has been afforded to banking organizations by the federal banking agencies.
The House of Representatives returns this week from recess and is expected to consider the “Ensuring Small Scale LNG Certainty and Access Act” (H.R. 4606) and the “Empowering Students Through Enhanced Financial Counseling Act” (H.R. 1635).
The Senate is expected to consider several federal judicial nominations.
During its Board meeting, FASB addressed several operational issues related to the CECL (current expected credit loss) accounting standard. The issues were brought to the Board’s attention during a June meeting of FASB’s Transition Resource Group (TRG) on Credit Losses. The TRG, which includes credit union and other financial institution representation, has an ongoing mandate to examine CECL and alert potential problems with implementation to the Board so it can address those issue
The Bureau issued an interpretive rule clarifying changes made to HMDA reporting by S. 2155.
The rule is effective upon publication in the Federal Register and appears to be straight-forward guidance providing clarification on the Bureau’s interpretations of the new HMDA partial exemptions. The Bureau plans on issuing textual changes to Regulation C for notice-and-comment “at a later date.”
CUNA sent comments to NCUA regarding the agency’s supplemental proposal to amend the 2015 Risk-Based capital rule. The proposal would increase the threshold for compliance eligibility from $100 million to $500 million. CUNA believes the threshold would be more appropriately set at $10 billion.
The Wage and Hour Division of the Department of Labor will host a series of listening sessions to gather feedback related to its overtime regulations under the Fair Labor Standards Act (FLSA).
The “Overtime Rule” was finalized in May 2016 but a federal court enjoined the rule prior to its effective date. Last year, the Dept. issued a Request for Information (RFI) to solicit comment on the appropriate salary level for the “white collar” exemption and methodologies for calculating the threshold. In response, CUNA raised concerns that the rule nearly doubled the prior threshold and established overly strict compliance requirements.
CUNA joined other trade associations in sending a letter to Senate Leadership to ensure regulatory relief language remains in the conference committee version of the 2019 FSGG Appropriations bill. The signers The signers called for the bill to retain the text of the H.R. 1153, Mortgage Choice Act, a bipartisan bill that has passed the House in February and is consistent with CUNA’s Campaign for Common-Sense Regulation.
Specifically, H.R. 1153 would make minor adjustments to the Truth in Lending Act definition of "points and fees" to ensure greater consumer choice.
NCUA issued Supervisory Letter 18-01, outlining examination expectations regarding Bank Secrecy Act and Anti-Money Laundering compliance. NCUA’s updated BSA examination questionnaire is expected to be included in the September AIRES release, with examinations including the updated compliance violation schedule commencing subsequent. The letter notes that credit unions making good faith efforts to effectively comply the FinCEN’s May 11, 2018 Customer Due Diligence rule shall not be subject to compliance violations for infractions thereto.
The Senate is expected to consider executive and judicial nominations.
The House remains in recess until September 4, 2018.
The IRS released interim guidance regarding certain UBIT provisions in the Tax Cuts and Jobs Act of 2017 (TCJA). Notice 2018-67 will be published in Internal Revenue Bulletin 2018-36, dated September 4, 2018.
The new tax law requires the separate computation of UBIT for tax-exempt organizations with more than one unrelated trade or business. Before the TCJA, when a tax-exempt organization operated more than one unrelated trade or business activity, losses generated by one business could be used to offset income derived from another. Now, losses generated by one unrelated trade or business cannot be used to offset income derived from another unrelated trade or business. Clearly, this results in an increase in unrelated business taxable income and must be reported in a revised IRS Form 990-T. This provision became effective on January 1, 2018.
The Senate overwhelmingly passed a fiscal 2019 funding package, H.R. 6157, to fund the departments of Defense, Labor, Education and HHS. The leadership of both parties in the Senate are attempting to avoid a government shutdown on October 1, 2018, the first day of the 2019 fiscal year.
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ADA Compliance Notice & Legal
© 2019 Credit Union National Association
ADA Compliance Notice & Legal