RBC webinar is now available
If you missed last week’s webinar on the controversial risk based capital proposal, the free web session is now available online. In the hour-long session, two credit union CEOs warned a capacity audience of 500 last week that the National Credit Union Administration's proposed rule on risk-based capital will change how credit unions manage their operations and may require some to ration services to their members. For more information use the resource links below.
CUNA Webinar (members only)
CUNA RBC Action Center
Appraisal management proposal
The National Credit Union Administration and other federal financial regulators on Monday approved a joint proposal that would implement minimum requirements for state registration and supervision of appraisal management companies (AMCs). During last week’s open board meeting, NCUA staff said the AMC proposal should not have a measurable impact on credit unions because the it currently lacks the necessary authority to examine vendors for safety and soundness and compliance with laws and regulations.
The minimum requirements in the proposed rule would apply to states that elect to establish an appraiser certifying and licensing agency with the authority to register and supervise AMCs. The proposed rule would not compel a state to establish an AMC registration and supervision program, and there is no penalty imposed on a state that does not establish such a program. Under the joint-agency plan, an appraisal management company that is a subsidiary of a financial institution and regulated by a federal financial services regulatory agency would not be required to register with a state, but would otherwise be required to meet the same minimum requirements as other appraisal management companies.
The proposal soon will be published in the Federal Register and will be open for public comment for 60 days.The Credit Union National Association will be evaluating the impact of the proposal and will provide a summary in its Regulatory Comment Call.
CFPB report: payday lending
Today, the Consumer Financial Protection Bureau issued a report finding that four out of five payday loans are rolled over or renewed within 14 days. The study also shows that the majority of all payday loans are made to borrowers who renew their loans so many times that they end up paying more in fees than the amount of money they originally borrowed. The report, CFPB Data Point: Payday Lending, was issued today in coordination with the Bureau's Nashville 11 a.m. Payday Field Hearing. Director Cordray’s remarks, which he will deliver at the meeting, were released this morning. The CFPB has authority to oversee the payday loan market and is considering formulating new rules to bring reform to the payday loan market. It began its supervision of payday lenders in January 2012. In November 2013, the CFPB began accepting complaints from borrowers encountering problems with payday loans.