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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.
The BCFP issued its annual threshold adjustments for regulations implementing TILA and amendments to TILA, including the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA) and the Dodd-Frank Act. These thresholds are adjusted annually based on changes in the Consumer Price Index.
Of note, after being unchanged in 2018, the CARD Act penalty fee safe harbor is being increased by $1 for 2019. As a result, the penalty fee safe harbor for violating the terms of an open-end consumer credit plan will be $28 for a first violation and $39 for a subsequent violation.
The Bureau released its fourth Quarterly Consumer Credit Trends Report. These quarterly reports are based on analysis of about five million de-identified records from the three credit reporting agencies.
The current report focuses on telecommunications debts – i.e. consumer debts for landline/cell phone, cable, and internet services – in consumer credit records. According to the Bureau, these debts are “among the most common debts that creditors or debt collectors seeks from consumers.”
The Senate Banking committee voted in favor of Kathy Kraninger to become the permanent director of the Bureau of Consumer Financial Protection (BCFP). Kraninger, who currently serves in the Office of Management and Budget, was nominated by President Donald Trump in June to take the place of Acting Director Mick Mulvaney.
CUNA looks forward to learning more about Kraninger's views on consumer protection regulation, supervision and enforcement.
The Wall Street Journal posted CUNA’s response to last week’s opinion piece by the President of the Florida Bankers Association.
“Critics of the credit union tax status say credit unions use a tax advantage to create a stranglehold on the market, a claim that is patently false. While credit unions were established to provide many of the same services as banks, their tax status has always been about the structure and mission of credit unions; it has never been about the size or powers of credit unions. A credit union’s growth is a key indicator that it is doing exactly what Congress intended when it established their tax status: it is successfully serving its members."
CUNA and the League system are seen as the most influential financial services organizations and one of the most effective advocacy organizations in Washington, according to an independent study conducted by Ballast Research (formerly National Journal Research). Once again, CUNA is the leading association at representing the interests of its members, due to its success in creating the credit union narrative and sharing their story among Washington policymakers.
“The CUNA/League system is viewed as the trusted voice of credit unions and a respected advocate for credit union interests among policymakers,” said CUNA president/CEO Jim Nussle. “The competition for awareness on Capitol Hill is fierce, so knowing where we stand among influencers in Congress is important. Being an influential and effective source among policymakers means they welcome our calls and visits. We educate and fight for credit union issues on Capitol Hill and are proud to celebrate this major accomplishment.”
CUNA Senior Director of Advocacy and Counsel Alexander Monterrubio appeared on CUBroadcast recently to discuss CUNA’s latest efforts at finding a solution to credit unions being hit with abusive lawsuits under the Americans with Disabilities Act (ADA). Credit unions are facing these lawsuits due to uncertainty about how the ADA applies to websites.
Monterrubio said finding a solution is one of CUNA's top advocacy priorities, and the issue is likely to persist Department of Justice (DOJ) comes out with some form of guidance or rulemaking. He also noted that there has been a slowdown in the number of lawsuit filed and demand letters, but that could always change.
The NCUA announced its first-ever Financial Regulatory Agencies’ Diversity and Inclusion Summit, to be held Thursday, September 13, from 8 a.m. to 12:30 p.m. at the Federal Reserve Bank of New York, 33 Liberty Street, New York, NY.
The Summit will give stakeholders opportunities to:
FASB agreed to
propose a change regarding the effective date of the CECL (current expected
credit losses) standard as it applies to credit unions and other non-Public
Business Entities (non-PBE).
Critics of the credit union tax status seem to have it all figured out. They say credit unions use a tax advantage to create a stranglehold on the market that puts banks at a competitive disadvantage. Of course, this claim is patently false, blatantly misleading, and willfully ignorant.
Credit unions were established to provide many of the same services as banks, and that is where the similarities between credit unions and banks end.
Last week, the President of the Florida Bankers Associations published an opinion piece in the Wall Street Journal attacking the tax status of America’s credit unions.
The House of Representatives remains in recess until September 4, 2018.
The Senate reconvenes today to consider H.R.6157, the Minibus Appropriations Act (Defense and Labor/HHS).
In a Mortgagee Letter dated August 15, the Federal Housing Administration (FHA) announced new policies to prevent foreclosures in areas affected by Hurricane Maria.
Specifically, servicers of FHA loans in Presidentially-Declared Major Disaster Areas (PDMDAs) in Puerto Rico and the U.S. Virgin Islands are asked to evaluate borrowers’ eligibility for relief under the FHA’s disaster Loss Mitigation Waterfall where the following criteria are met:
1. The Mortgage was current or less than 60 days past due as of the date of the applicable Disaster Declaration;
2. The Mortgagee confirms that the Borrower’s income (e.g., wages, social security, pension, annuity, etc.) is equal to or greater than it was prior to the Disaster;
3. The Borrower demonstrates the ability to resume total monthly mortgage payments of Principal, Interest, Taxes, and Insurance (PITI);
4. The dwelling is owner-occupied;
5. The total Principal and Interest (P&I) amount of a Borrower’s monthly Mortgage Payment does not change;
6. The Mortgagee waives the Borrower’s accumulated late fees; and
7. The Disaster Standalone Partial Claim is subject to the maximum statutory value of all Partial Claims for an FHA-insured Mortgage.
The Senate Commerce Committee held an oversight hearing on the Federal Communications Commission (FCC). Prior to the hearing, CUNA wrote to Chairman Thune and Ranking Member Nelson telling them that credit unions need regulatory relief from the Telephone Consumer Protection Act.
It’s been widely reported that the BCFP is considering ending examination activities related to the Military Lending Act (MLA). This policy shift is proposed in an internal memo arguing that the Bureau does not currently have the authority to conduct such examinations.
Director Mulvaney has maintained on several occasions that the Bureau should aim to limit its authority to situations where such authority has been clearly provided by Congress. In this case, the Dodd-Frank Act provides the BCFP with the authority to conduct examinations related to provisions in Dodd-Frank and other “enumerated consumer laws.” However, the MLA does not appear on the list of enumerated laws in Dodd-Frank.
CUNA and credit union league staff attended the American Legislative Exchange Council (ALEC) in New Orleans. ALEC is America’s largest nonpartisan voluntary membership organization of state legislators dedicated to the principles of limited government, free markets, and federalism. Comprised of nearly one-quarter of the country’s state legislators and stakeholders from across the policy spectrum, ALEC members represent more than 60 million Americans across the country.
This week, the Senate will confirm two more circuit court nominees and begin processing H.R. 6157, the Defense-Labor-HHS-Education appropriations bill.
The House remains in recess until September 4, 201
On August 15, at 2pm Eastern, NCUA’s Office of Credit Union Expansion & Resources will host a free webinar on Share Insurance. Questions may be posed in advance.
CUNA will conduct two training programs for young credit union professionals in September, building off the successful program CUNA hosted last year. Registration is open now for the all-day programs, scheduled for September 10 and September 24 in CUNA’s Washington, D.C. office.
The Small Business Administration’s (SBA) Office of Advocacy filed an ex parte communication memo with the Federal Communications Commission (FCC). In their letter, the SBA shared credit union concerns regarding the Telephone Consumer Protection Act (TCPA). CUNA’s Small Credit Union Committee requested that the SBA advocate on behalf of credit unions and appreciate their efforts.
CUNA has urged the FCC to clarify several issues under the TCPA, as it creates compliance burdens and potential liability for credit unions trying to communicate important account information to members.
“Defining key statutory terms such as an automatic telephone dialing systems (ATDS) and ‘called party’ and identifying reasonable methods to revoke consent consistent with the TCPA’s language and intent will substantially reduce uncertainty and help mitigate the onslaught of TCPA litigation. The commission should also use this opportunity to update antiquated distinctions between wireless and wireline calls when companies make informational calls to their customers or members, as requested in CUNA’s petition for declaratory ruling.”
A lawsuit against Aurora Policeman CU (APCU) in Illinois was dismissed by the U.S. District Court for the Northern District of Illinois for lack of standing. Similar predatory lawsuits have detrimentally impacted credit unions nationwide alleging non-compliance with the Americans with Disabilities Act (ADA).
At the end of February, CUNA and the Illinois Credit Union League filed an amicus brief support of Aurora Policeman's motion to dismiss the complaint. APCU was one of many credit unions in Illinois and across the country that received a demand letter threatening litigation or has been sued for alleged non-compliance with the ADA.
CUNA's President and CEO, Jim Nussle published an op-ed in the Credit Union Journal celebrating the 20th Anniversary of the enactment of H.R. 1151, the Credit Union Membership Access Act. As a Member of Congress, Jim was a proud supporter of the legislation because he understood it was necessary for credit unions to be able to continue to serve their members and their communities.
“Today, I am even prouder of the work credit unions have done since to take advantage of H.R. 1151 – growing the credit union movement to more than $1 trillion in assets, expanding service to more than 110 million Americans and delivering billions of dollars of financial benefit every year.” -- Jim Nussle
CUNA and credit union league staff joined more than 5,000 attendees in Los Angeles at the National Conference of State Legislatures (NCSL) Legislative Summit.
Engagement at the NCSL Legislative Summit is particularly important because legislators adopt policies in NCSL’s eight standing committees. The adopted policies become the backbone of NCSL’s efforts to fight unwarranted federal preemption of state laws, unfunded mandates, and federal legislation that threatens state authority and autonomy. Of note, the NCSL passed a directive calling on Congress to amend the Controlled Substances Act to remove cannabis from scheduling, thus enabling financial institutions the ability to provide banking services to cannabis related businesses. The directive passed without dissent.
The NCUA board issued a lending proposal, finalized a suspensions and debarment rule and extended the federal credit union loan interest rate ceiling, among other items on the agenda at its most recent board meeting. The board also approved a proposed rule to delay NCUA’s risk-based capital rule by one year.
The Senate voted in favor of the National Defense Authorization Act (NDAA) conference report that omits a harmful provision to military credit unions. As a result, credit unions will continue to receive exemption from costs associated to the furnishing of office space and/or land (including ATM placement) on military bases – as governed by Section 124 of the Federal Credit Union Act.
CUNA strongly pushed for removal of Section 2808 from the NDAA which intended to treat federal or state charted insured depository institutions equally with respect to the financial terms of leases, services and utilities. However, the definition of "insured depository institutions" excluded credit unions.
The Senate passed its Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 as part of four appropriations bills. Prior to the Senate's vote, CUNA wrote to Majority Leader McConnell and Minority Leader Schumer in support of this legislation.
“We thank the Senate for passing the bill, and for the attention of Senate appropriators to call for full funding for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.
This legislation includes CUNA-supported funding of $250 million for the Community Development Financial Institutions (CDFI) Fund. This account is fully funded at Fiscal Year 2018 levels, an achievement in this austere fiscal climate. The House passed counterpart to this week’s Senate bill includes $248 million for the CDFI Fund. We remain confident that the Senate position on CDFI funding will prevail in the final funding bill for fiscal year 2019.
This legislation also includes CUNA-supported funding of $2 million for the Community Development Revolving Loan Fund. This is same amount received by the Fund in Fiscal Year 2018 levels, a significant achievement in this austere fiscal climate.
The NCUA Board met today for its July meeting (postponed from last week). The Board issued a proposal to delay the effective date of the agency’s risk-based capital rule by one year (from January 1, 2019, to January 1, 2020). The proposal would also raise the asset threshold for a complex credit union from $100 million to $500 million.
The Treasury Department released its much-anticipated Report on Nonbank Financials, Fintech, and Innovation. This is the fourth and final report on the financial regulatory landscape to be issued by the Department, which was required to conduct its review pursuant to an executive order by President Trump.
In total, the Report contains over specific 80 recommendations for regulatory and legislative action that would better encourage innovation and regulatory efficiency. While many expected the Treasury Department to voice its support for the creation of a unified “regulatory sandbox” and the national bank charter for online lenders, there are several other recommendations that stand out as especially noteworthy for credit unions.
CUNA joined other financial trade associations in sending a letter to Chairman Latta of the Subcommittee on Digital Commerce and Consumer Protection. In the letter, the trades wrote about how major merchant data breaches continue to put millions of consumers at risk.
The letter highlights principles the trades believe should be part of any data breach bill:
CUNA wrote to Chairman Latta of the House Energy and Commerce Subcommittee on Digital Commerce and Consumer Protection. In the letter CUNA wrote that mitigating losses from data breach remains a top credit union priority.
Data breaches that expose card information and consumers’ personally identifiable information, such as what happened with the 2017 Equifax data breach, cost credit unions and their member owners enormous sums of money and, in the case of Equifax, give criminals much personal information which can be used to directly defraud credit unions and other financial institutions.
CUNA submitted comments to NCUA on the agency’s proposed payday alternative loan (PAL) II rule. While CUNA appreciates NCUA’s efforts to increase short-term, small-dollar lending opportunities, CUNA believes the current proposal does not go far enough. In particular, the proposed APR rate cap (unchanged from PAL I) of 28% is too low and misaligned with the BCFP’s Payday Lending rule, as well as the DoD’s Military Lending Act-both of which set the maximum APR at a more realistic 36%.
New bank tax savings
vs. the “cost” to the taxpayers of the credit union federal income tax status.
The House of Representatives is in recess and will return September 4, 2018.
The Senate is in session this week and will consider:
•The nomination of Britt Grant to be United States Circuit Judge for the Eleventh Circuit
•The four-bill appropriations ‘minibus’ (including the Financial Services and General Government Appropriations Act for Fiscal Year 2019)
•A four-month extension of the National Flood Insurance Program
•The National Defense Authorization Act conference report
The Bureau of Consumer Financial Protection (BCFP) recently closed comments on the last outstanding request for information (RFI) it issued earlier this year as part of a comprehensive review of its operations. Since then, the Bureau has continued to engage in efforts to solicit feedback and get more detail on the comments it received during the process. Yesterday, the BCFP published a blog post voicing its commitment to engage stakeholders.
The NCUA board will consider a risk-based capital proposed rule, among other items on the agenda for its August 2nd meeting. The board did not meet in July.
The meeting will start at 10 a.m. (eastern) on August 2, and live video will be streamed on NCUA.gov.
The complete agenda is:
The House passed the National Defense Authorization Act without a provision CUNA fought to exclude that could have negatively impacted credit unions on military bases. CUNA successfully fought for removal of Section 2808 of the House bill, which was removed in the conference report of the bill.
Section 2808 of the House version of NDAA was intended to treat Federal or State chartered insured depository institutions equally with respect to the financial terms of leases, services, and utilities. Unfortunately, its definition of “insured depository institutions” excluded credit unions.
The House Ways and Means Committee released a two-page outline referred to commonly as “Tax Reform 2.0”. As expected, it proposes to make permanent the new and lower tax rates for individuals and closely held corporations included in the Tax Cuts and Jobs Act of 2017. There are retirement proposals included as well as broad proposals to help innovation and start-up businesses. The document suggests allowing startups to write off more expenses as well as “remove barriers to growth.” It is likely that legislative text will be released in September followed quickly by Committee consideration and finally a vote by the full House of Representatives, most likely near the end of September or in early October.
This bill will likely not have any direct positive or negative effects on credit unions. Credit unions do have some concerns related to last year’s tax law as it relates to tax exempt organizations. These concerns include our concerns related to the new excise tax on executive compensation and the new tax on nonprofit fringe benefits. The vehicle for successfully addressing these concerns will likely be a tax technical corrections bill after the fall elections.
The House passed legislation that will extend the National Flood Insurance Program's (NFIP) funding an additional four months, through November 30th. CUNA strongly supports this extension to prevent potentially significant disruption to housing markets in flood-prone areas of the country.
CUNA is pleased the House has voted to extend the NFIP for four months and hope the Senate will follow suit. While CUNA encourages Congress to continue to work on a long-term solution to enhance affordability and sustainability of the NFIP and provide certainty to the market, this extension, upon Senate passage and enactment, will ensure credit unions in affected areas are able to continue serving their members’ mortgage needs.
The House Energy and Commerce Subcommittee on Communications and Technology held an oversight hearing of the Federal Communications Commission (FCC). Prior to the hearing, CUNA wrote to Chairman Blackburn and Ranking Member Doyle urging them to press upon the Commission the need to revise its implementation of the Telephone Consumer Protection Act (TCPA) and create a robust, comprehensive reassigned numbers database to combat illegal robocalls from bad actors.
CUNA has consistently pressed upon the Commission the urgent need to modernize its approach to the TCPA. CUNA's efforts include filing a petition in September 2017 outlining how the FCC could provide credit unions with TCPA relief. Specifically, CUNA proposed several approaches the Commission could adopt to provide credit unions with greater ability to communicate with member-owners about information they want and need.
The Senate is considering a four-bill appropriations “minibus.” Included is the Financial Services and General Government Appropriations Act for Fiscal Year 2019, as passed by the Senate Appropriations Committee on June 21, 2018. This legislation includes CUNA-supported funding of $250 million for the Community Development Financial Institutions (CDFI) Fund. This account is fully funded at Fiscal Year 2018 levels, an achievement in this austere fiscal climate. The House passed counterpart to this week’s Senate bill includes $248 million for the CDFI Fund. We remain confident that the Senate position on CDFI funding will prevail in the final funding bill for fiscal year 2019.
The Board agreed to
propose a change regarding the effective date of the CECL (current expected
credit losses) standard as it applies to credit unions and other non-Public
Business Entities (non-PBE).
CUNA and credit union league staff will join nearly 6,000 attendees in Los Angeles at the National Conference of State Legislatures (NCSL) Legislative Summit. Attendees include state legislators, legislative staff, government officials, business representatives, and others interested in public policy.
Nineteen state Attorneys General wrote to Attorney General Sessions urging clarity about how the Americans with Disabilities Act (ADA) applies to websites. Several of the signers signed onto the letter due to advocacy efforts by state credit union leagues.
Credit unions are cited in the letter as an example of an industry that has been targeted by frivolous ADA lawsuits and predatory demand letters.
“When it comes to web accessibility standards, the ADA does not provide clear guidance to the public or regulated entities,” the letter reads. “This void in the law has led to unnecessary lawsuits in an effort to exploit the law’s ambiguity for financial gain with little or no corresponding benefit to consumers.”
A CUNA-led charge to remove language putting credit unions on military bases at a potential disadvantage was successful. Section 2808 of the National Defense Authorization Act (NDAA) for FY 2019 has been removed!
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© 2019 Credit Union National Association
ADA Compliance Notice & Legal
© 2019 Credit Union National Association
ADA Compliance Notice & Legal