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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!
The House and Senate are both in session this week.
The Senate Banking Committee held a nomination hearing for Kathleen Kraninger - the President's nominee for Director of the Bureau of Consumer Financial Protection (BCFP). Prior to the hearing, CUNA wrote to Chairman Crapo and Ranking Member Brown in support of the nomination process and continued to urge Congress to support a bipartisan commission for the Bureau.
Ms. Kraninger currently serves as associate director at the Office of Management and Budget, where she oversees the agencies responsible for border policy and coordinating disaster aid.
In the letter CUNA wrote, "Stability of leadership and clarity of mission are critical features of any efficient and effective regulatory body. Credit unions look forward to working with a new permanent BCFP Director, one that we hope will recognize the unique structure of credit unions and the enormous benefit credit unions provide to American consumers in need of financial services."
President and CEO of Alaska Federal Credit Union, Geofferey Lundfelt wrote to Senator Sullivan of Alaska regarding the Senate's work on the National Defense Authorization Act (NDAA) FY 2019.
"Since 2006, the Department of Defense has had the discretionary authority to allow credit unions to utilize office space and/or land (including ATM placement) on military bases on a rent-free or nominal basis. Credit unions who wish to do so must meet specific statutory and regulatory requirements regarding the provision of financial services to the base population, and the decision as to whether or not to provide such space remains solely within the discretion of DoD. At this time, both Alaska USA and MAC Federal Credit Union serve service-members and their families at Joint-Base Elmendorf Richardson in Anchorage and Fort Wainwright in Fairbanks under leases of this nature."
The House has passed H.R. 6147 - the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 by a vote of 217 - 199. Prior to the vote, CUNA wrote to Speaker Paul Ryan and Ranking Member Pelosi in support of the legislation.
"We thank House leadership for passing regulatory relief measures that will greatly benefit credit unions," said CUNA President/CEO Jim Nussle. "CUNA has maintained since NCUA first proposed the risk-based capital rule that it is a solution in search of a problem, so we support any legislative means to reduce the rule’s impact on credit unions."
S. 488, the JOBS and Investor Confidence Act of 2018 passed the House of Representatives by a vote of 406-4. Included in the legislation was Title XVII of a House Amendment that would delay the risk-based capital rule finalized by the NCUA. CUNA supported this measure as it reduces the impact on credit unions by pushing the effective date from January 1, 2019 to January 1, 2021.
Prior to the vote, CUNA wrote to Speaker Paul Ryan and Minority Leader Nancy Pelosi in support of this legislation.
CUNA joined NAFCU, ABA, and ICBA in sending a letter to Speaker Paul Ryan and Minority Leader Nancy Pelosi urging the adoption of Representative McHenry's amendment to the Financial Services and General Government (FSGG) appropriations bill to prohibit the U.S.P.S. from providing banking services.
The government caretaker of Fannie Mae and Freddie Mac has been ruled unconstitutional by a federal court. The Federal Housing Finance Agency (FHFA), created in in the wake of the 2008 financial crisis as the housing market collapsed, violates the Constitution because it does not answer to the president, a three-judge panel for the U.S. Court of Appeals for the Fifth Circuit ruled.
The National Credit Union Administration has announced it will issue dividends in 2018 during the week of July 23 for more than 5,700 eligible institutions.
CUNA supported a transparent and equitable method for repaying credit unions and pushed for a temporary increase of four basis points in the fund NOL while the share insurance fund holds corporate legacy assets and continues to insist the increase that was adopted be only temporary and phased down to 1.3% by 2021 as the relative exposure of the legacy assets diminishe
CUNA wrote to Chairman Luetkemeyer and Ranking Member Clay prior to today’s House Subcommittee on Financial Institutions and Consumer Credit entitled, “Examining Capital Regimes for Financial Institutions.”
In the letter CUNA suggested there are two steps Congress should consider with respect to credit unions’ capital regime:
1. Delay the implementation of the NCUA’s recently finalized risk-based capital rule; and
2. Enact legislation that permits all credit unions to issue supplemental capital instruments.
Lance Noggle, CUNA Senior Director of Advocacy for payments and cyber-security represented credit unions in a cyber-security panel discussion that took place in Washington earlier today. Noggle discussed why credit unions see data security as such an important issue and why the problems cannot be solved through technology alone.
The NCUA will be hosting a Facebook Live event tomorrow - July 17th - to discuss how servicemembers, veterans and their families can spot and avoid imposter scams. The Federal Trade Commission will be on hand to share some interesting data and resources.
The Facebook live event is scheduled to begin at 2 p.m. ET. The discussion is part of the NCUA’s activities during Military Consumer Month, which runs during July. No registration is required, and there is no charge.
Four Members of Congress wrote to Armed Services Committee leadership in both the House and Senate urging for them to remove Section 2808 from the House version of the NDAA FY 2019 legislation.
This provision was intended to treat credit unions and banks equally with respect to the financial terms of lease, services, and utilities on military installations. Unfortunately, as currently written – due to a drafting error, this provision excludes credit unions from the definition of “insured depository institutions.”
The House and Senate are both in session this week.
The House of Representatives will consider H.R. 6147, the “Interior, Environment, Financial Services, and General Government Appropriations Act, 2019.” It will also consider H.Con.Res. 119, a resolution “Expressing the sense of Congress that a carbon tax would be detrimental to the United States economy.”
The Senate will resume consideration of the nomination of Scott Stump to be Assistant Secretary for Career, Technical, and Adult Education, Department of Education. Last week, Senate Majority Leader Mitch McConnell (R-KY) filed cloture on the nominations of Randal Quarles to be a Member of the Board of Governors of the Federal Reserve. If cloture is invoked on his nomination, the Senate will begin to use up to 30 hours of post-cloture debate time prior to his confirmation vote.
CUNA filed a letter with the Bureau on its request to the Office of Management and Budget (OMB) regarding the Consumer Complaint Intake System.
The Dodd-Frank Act requires the Bureau to facilitate the centralized collection of, monitoring of, and response to consumer complaints regarding consumer financial products or services. In furtherance of its statutory mandate related to consumer complaints, the Bureau utilizes a Consumer Complaint Intake System Company Portal Boarding Form (Boarding Form) to sign up companies for access to the secure, web-based Company Portal.
Prior to the Senate Banking Committee’s hearing on the Fair Credit
Reporting Act (FCRA) and credit bureaus, CUNA
wrote to Chairman Crapo and Ranking Member Brown requesting clarity
and flexibility for the implementation of regulations and guidance under the FCRA.
CUNA joined other financial services trades today in sending a joint letter of support for S. 2490, the TRID Improvement Act of 2018, which would amend the Real Estate Settlement Procedures Act (RESPA) to allow for the disclosure of available discounts for lender’s title insurance policies. Under current law, the TILA-RESPA Integrated Disclosure does not allow for the disclosure of certain discounts that may be available to a borrower for selecting a specific title insurance company to underwrite title insurance when purchasing a home.
CUNA launched a new online community this week for its Member Activation Program (MAP), a forum where credit union industry professionals can discuss advocacy issues, communications, best practices and exchange ideas and resources to better advocate for credit unions. The MAP Community is a free community for CUNA members, and it is available to all CUNA members.
Director Mulvaney named Brian Johnson as Acting Deputy Director at the Bureau of Consumer Financial Protection. Johnson currently serves as principal policy director at the bureau.
Johnson will replace departing Deputy Director Leandra English, who announced her resignation last week.
CUNA’s Policy Analysis group recently updated and re-posted its white paper on the credit union tax status. The paper reveals that the tax treatment Congress conveyed on credit unions roughly 100 years ago continues to serve the purpose for which it was created and is one of the best investments that the government makes in its citizens.
The House and Senate are both back in Session this week.
The House of Representatives will consider the “Crooked River Ranch Fire Protection Act” (H.R. 2075); the “ Matthew Young Pollard Intelligence Authorization Act for Fiscal Years 2018 and 2019” (H.R. 6237); the “Unfunded Mandates Information and Transparency Act of 2017” (H.R. 50); the “Strengthening Fishing Communities and Increasing Flexibility in Fisheries Management Act” (H.R. 200); and the “Reclamation Title Transfer and Non-Federal Infrastructure Incentivization Act” (H.R. 3281).
The Senate will resume consideration of the nomination of Mark Jeremy Bennett to be United States Circuit Judge for the Ninth Circuit and an Act to amend the” White Mountain Apache Tribe Water Rights Quantification Act of 2010” (S.140).
Comment call by HUD available for comment.
The NCUA Board unanimously approved the final rule on voluntary mergers, amending Parts 701 and 708b of NCUA’s regulations. Dubbed the “Merger Transparency Rule,” the rule seeks to remedy the practice whereby members of merging credit unions may lack access to timely communications regarding mergers.
The NCUA Board unanimously approved a final rule to amend field of membership rules to permit a field of membership application to be submitted under a narrative approach to serve a well-defined local community exceeding a 2.5 million population.
CUNA wrote to Senators McCain, Reed, Inhofe and Representative Thornberry, and Smith to oppose a provision in the House version of H.R. 5515, the National Defense Authorization Act. The provision would exclude credit unions from the current resources furnished to them on military bases. If passed, this provision would be a detriment to military credit unions while granting banks access to the same bases.
The House of Representatives passed legislation that contained a CUNA-backed provision to delay the implementation date of the NCUA's risk-based capital (RBC) rule.
Specifically, it would push the bill’s effective date back to Jan. 1, 2021, from the currently scheduled Jan. 1, 2019 date.
“CUNA and credit unions have well-founded concerns about NCUA’s risk-based capital rule, primarily whether or not NCUA even has the legal authority to issue such a rule,” said CUNA President/CEO Jim Nussle. “We continue to maintain that the risk-based capital rule is a solution in search of a problem, and support Congressional efforts to delay the rule.”
The Senate Banking Committee held a hearing entitled, "Legislative Proposals on Access to Capital.” Prior to the hearing, CUNA wrote to Chairman Crapo and Ranking Member Brown urging the Committee to consider two proposals pertinent to credit unions.
The House Budget Committee passed a concurrent resolution, laying the outline for a ten year budget plan for the federal government. It outlines revenue targets and federal spending, both mandatory and discretionary. It also includes some policy measures.
Specifically, the budget resolution balances the federal budget in nine years and calls for deep spending cuts.
District court judges in Alabama and Ohio properly found that plaintiffs in frivolous ADA website accessibility lawsuits failed to state a claim for relief. In both cases, plaintiffs were ineligible for membership in the credit union. In both cases, plaintiffs inaccurately claimed that the credit union’s participation in the Co-op Shared Branching network of ATMs provided a legal nexus to confer standing. In both cases, plaintiffs were held to lack standing, and therefore, no harm could be claimed.
This week, the House of Representatives will consider several bills under suspension of the rules, including:
The House will also consider H.R. 6157, the Department of Defense Appropriations Act for FY 2019 and complete consideration of H.R. 6136, the Border Security and Immigration Reform Act.
The Senate is expected to consider H.R.5895, the Energy and Water, Legislative Branch, and Military Construction and Veterans Affairs Appropriations Act for FY 2019. It may also consider H.R. 2, the Agriculture and Nutrition Act of 2018.
CUNA submitted its comprehensive white paper to the bureau in response to its request for information (RFI) on inherited regulations and inherited rulemaking authorities. In the letter, CUNA urges the Bureau to conduct an extensive review of the regulations under its jurisdiction.
In its latest legal advocacy efforts to defend credit unions facing threats due to uncertainty regarding how the Americans with Disabilities Act (ADA) applies to websites, CUNA filed an amicus brief with the U.S. Court of Appeals for the Fourth Circuit in Griffin v. DOL FCU. A judge in the Eastern District of Virginia dismissed the lawsuit in February, and now that it has reached the appellate level, a decision will provide binding precedent for the Fourth Circuit.
A letter was delivered to Attorney General Sessions seeking guidance and clarity on how best comply with website standards for the Americans with Disabilities Act (ADA). The letter was signed by over 100 Members of the House of Representatives.
America's credit unions continue to be targets of predatory litigation alleging ADA violations, specifically as it applies to websites. CUNA supported the letter and has made finding a solution a top advocacy priority.
The Senate Appropriations Committee passed the Financial Services and General Government Appropriations Act for Fiscal Year 2019.
This legislation includes CUNA-supported funding of $250 million for the Community Development Financial Institutions (CDFI) Fund. CUNA also strongly supports the bill's appropriation of $2 million for the Community Development Revolving Loan Fund. Both of these accounts are fully funded at Fiscal Year 2018 levels, an achievement in this austere fiscal climate.
The bill also funds other accounts of importance to credit unions, including:
The National Credit Union Administration (NCUA) voted on several revisions at its monthly meeting, namely a final rule on Field of Membership (FOM). The rule will permit credit unions to submit a field of membership application to serve a well-defined local community exceeding 2.5 million people. CUNA strongly supports the NCUA's efforts to modernize field of membership and has been actively engaged in this issue since sending NCUA a detailed letter outlining changes NCUA could make to modernize field of membership rules.
The NCUA held its June Board Meeting. A briefing was provided to update the Board on the agency’s enterprise data modernization program, including the scope, requirements, and software infrastructure that will replace CU online, FOMIA, and Genesis programs.
The Senate Foreign Relations Committee held a hearing entitled, “USAID Resources and Redesign." Prior to the hearing, CUNA wrote to Chairman Corker and Ranking Member Menendez encouraging procurement reforms that would level the playing field in international development.
The Senate voted down a procedural vote on H.R. 3, the Spending Cuts to Expired and Unnecessary Programs Act (48-50). If passed, this bill would have rescinded $141 million from the Treasury’s Community Development Financial Institutions (CDFI) Fund. Prior to today's vote, CUNA wrote to Senate leadership in opposition to the bill. CUNA opposed rescissions from funds that have already been authorized, particularly funds that credit unions are able to leverage for much-needed affordable housing solutions in the communities they serve.
President Donald Trump will nominate former NCUA board member Rodney Hood to fill the board seat currently held by board member Rick Metsger. The appointment of Hood, who previously served as vice chair of the NCUA board under President George W. Bush, would still leave a vacant seat on the board, as former board Chair Debbie Matz’s seat has not been filled.
This week, the House of Representatives is scheduled to consider H.R. 5797; the Individuals in Medicaid Deserve Care that is Appropriate and Responsible in its Delivery Act; H.R. 6082, the Overdose Prevention and Patient Safety Act; and H.R. 6, the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act. It has also been reported that the House may reconsider the farm bill reauthorization as well as immigration legislation this week.
The Senate will resume consideration of H.R.5515, the National Defense Authorization Act. It has also been reported that the full Senate may consider appropriations legislation this week.
CUNA filed its white paper entitled, the Common-Sense Reforms to Bureau of Consumer Financial Protection Rules and Procedures, with the Bureau of Consumer Financial Protection in response to its Request for Information (RFI) on its adopted regulations and new rulemaking authorities. The comment letter deadline for this RFI is Tuesday, June
CUNA and the Ohio Credit Union League filed an amicus brief in an ADA website accessibility lawsuit: Mitchell v. BMI FCU (Southern District of Ohio, Eastern Division). The brief supports the defendant credit union’s motion to dismiss and contends that a website is not a place of public accommodation, the plaintiff lacks standing, and lack of Justice Department implementing regulations render the application of the law impermissibly vague. Further, the court should refer the issue to the Justice Department under the doctrine of primary jurisdiction.
CUNA submitted comments to the Federal Communications Commission in response to their Public Notice regarding TCPA implementation in light of the U.S. District Court’s ruling, vacating the agency’s 2015 guidance. CUNA’s comments call on the agency to adopt the definition of ATDS as requested in CUNA’s joint petition, filed in conjunction with the U.S. Chamber of Commerce and 17 other business and trade association signatories. That petition highlights that to qualify as an ATDS, such system must use store and dial random or sequential numbers without human intervention and TCPA liability would only be attached to such ATDS definition.
The House Appropriations Committee passed its Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019. This legislation included a number of CUNA-supported regulatory relief provisions. Prior to yesterday's markup and vote, CUNA wrote a letter of support to Appropriations Committee leadership.
“We support the many regulatory relief provisions included in the Subcommittee draft that would benefit credit unions. It includes a two-year delay to the effective date of the NCUA’s risk-based capital rule, from January 1, 2019 to January 1, 2021,” wrote CUNA President/CEO Jim Nussle. “The bill also includes the Mortgage Choice Act, the Privacy Notification Technical Clarification Act, the Financial Institutions Examination Fairness and Reform Act, the TRID Improvement Act, and the Bureau of Consumer Financial Protection–Inspector General Reform Act.”
CUNA wrote to Representatives Pearce and Leutkemeyer in support of their legislation - H.R. 6068, the Counter Terrorism and Illicit Finance Act.
If enacted, H.R. 6068, the Counter Terrorism and Illicit Finance Act, would:
Credit unions from Kansas and Missouri were invited to a first-of-its-kind round table. Nearly 50 credit union leaders from Kansas and Missouri met with Mick Mulvaney, Director of the Bureau of Consumer Financial Protection in the Kansas City region on June 7.
CUNA sent three letters to Capitol Hill in support of legislation that would clarify the ability of financial institutions to serve legal cannabis-based businesses in states where cannabis is legal. CUNA does not have a position on legalizing or decriminalizing marijuana, it supports the ability of credit unions to serve member businesses when legal.
CUNA supports credit unions’ ability to serve their members. In states where cannabis is legal for medicinal and recreational purposes, credit union members are engaged in this market but have difficulty accessing traditional banking services. It is also possible that credit unions in states where cannabis is not legal are, without their knowledge, serving members engaged in this market.
USAA filed suit against Well Fargo last week in U.S. District Court for the Eastern District of Texas for intellectual property infringement stemming from Well’s remote deposit capture (RDC) products. USAA has been seeking licensing fees from credit unions and banks that use remote deposit capture technology. The complaint filed Thursday in U.S. District Court for the Eastern District of Texas.
This week, the House of Representatives will consider a number of bills aimed at combatting the opioid epidemic. These bills include H.R. 5735, the Transitional Housing for Recovery in Viable Environments Demonstration Program Act; H.R. 2851, the Stop the Importation and Trafficking of Synthetic Analogues Act of 2017; and H.R. 5788, the Securing the International Mail Against Opioids Act of 2018.
The Senate will consider H.R. 5515, the National Defense Authorization for Fiscal Year 2019.
The House of Representatives passed H.R. 3, the Spending Cuts to Expired and Unnecessary Programs Act. The bill would cut $15 billion in unspent funds from various government agencies and programs from fiscal years (FY) prior to FY 2018.
Included in the bill was a $141 million rescission from the Capital Magnet Fund (CMF) in the Community Development Financial Institutions (CDFI) Fund. The Administration had requested a rescission of $151 million in budget authority for the Capital Magnet Fund, a program administered through the CDFI Fund in the U.S. Department of the Treasury. CDFI credit unions apply for and use awarded grants from the Capital Magnet Fund to finance affordable housing solutions and community revitalization efforts that benefit low-income individuals and communities nationwide.
It has been reported that the Bureau of Consumer Financial Protection will dismiss its case against PHH. PHH, a mortgage service provider that the Bureau targeted for an enforcement action in 2015, challenged the single-director leadership structure in court and initially won a ruling in its favor, but that ruling was overturned in January.
CUNA filed a comment letter to the FCC regarding its proposal to create a Reassigned Numbers Database for purposes of compliance with the Telephone Consumer Protection Act (TCPA). Our comments state that the Commission should establish a comprehensive, easy-to-use and affordable reassigned numbers database and provide a safe harbor from TCPA liability for calling a reassigned number where the caller utilized the database, along the lines of the Do Not Call registry provisions.
CUNA strongly urged the Bureau of Consumer Financial Protection to employ a greater use of advance notice of proposed rulemakings (ANPRs). CUNA sent a copy of its comprehensive white paper to the bureau in response to its request for information on the bureau’s rulemaking process.
The Bureau of Consumer Financial Protection announced the restructuring of their advisory boards - including the Credit Union Advisory Council (CUAC). Reports indicate the bureau has dismissed all members of the Consumer Advisory Board (CAB), though the bureau noted it would continue to fulfill CAB statutory obligations.
The House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled, “Improving Transparency and Accountability at the Bureau of Consumer Financial Protection.” Prior to the hearing, CUNA sent a letter to Chairman Luetkemeyer and Ranking Member Clay highlighting a number of ways that credit unions want change at the Bureau of Consumer Financial Protection (BCFP).
CUNA launched a grassroots effort to urge credit union stakeholders to share stories of the impacts of regulatory burden with the Bureau of Consumer Financial Protection. CUNA has launched a web page with resources and other information for individuals interested in commenting. Feedback must be submitted by June 19.
NCUA released Q1 2018 credit union performance data today comprising quarterly summaries and financial performance reports for the quarter ending March 31, 2018. Total CU assets rose by $79B (a 5.9% increase) during the quarter, with the delinquency rate down slightly 66 bps. Net income totaled #12.6B, an increase of 35.4% over the same period last year.
The American Bankers Association filed a cross-appeal in response to NCUA’s appeal of the U.S. District Court ruling regarding NCUA’s field-of-membership (FOM) rule. CUNA strongly supports NCUA’s appeal and further believes the court erred in its finding that the agency overstepped its statutory authority with regard to the combined statistical area approach and the definition of rural district.
CUNA urged the Bureau of Consumer Financial Protection to revisit its complaint intake system’s processes in response to the Bureau's request for information on its public reporting practices of consumer complaint information. CUNA submitted its comprehensive white paper to the Bureau along with a cover-letter, which covers this topic, among others.
The House & Senate are both in session this week.
The House of Representatives will consider H.R. 5895, the Energy and Water Development and Related Agencies Appropriations Act, the Military Construction and Veterans Affairs Appropriations Act, and the Legislative Branch Appropriations Act. The House may also consider H.R. 8, the Water Resources Development Act of 2018. In addition, the House may consider the Senate Amendment to H.R. 3249, the Project Safe Neighborhoods Grant Program Authorization Act of 2018.
The Senate will consider Robert Earl Wier to be United States District Judge for the Eastern District of Kentucky. In addition, the Senate may consider the National Defense Authorization Act (NDAA) and the Water Resources Development Act (WRDA).
CUNA continues active engagement on advocacy efforts at the Federal Communications Commission, urging the Commission to modernize the 1991-enacted Telephone Consumer Protection Act (TCPA). As the agency has issued public notice for comments on definitions used within TCPA, including what constitutes an automatic telephone dialing system (ATDS), who is a called party, and how a party may revoke prior express consent under TCPA,
CUNA hosted a webinar with the World Council of Credit Unions (WOCCU) to discuss the European Union's (EU) General Data Protection Regulation (GDPR) - which became effective on May 25th.
CUNA continues to stand with credit unions in the wake of frivolous litigation targeting credit unions under the guise of ADA website accessibility. In the last two weeks, CUNA has worked with state credit union league partners to file amici briefs in several circuits: with the Ohio Credit Union League in Mitchell v. BMI FCU in the Southern District of Ohio, and Thurston v. KBR Heritage FCU in the Southern District of Texas.
Last week’s passage of S. 2155 was a huge victory for credit unions! This landmark regulatory relief bill benefits credit unions in a variety of ways, from increasing the MBL cap by removing 1-to-4 family non-owner occupied residential property from the cap, to rolling back the onerous HMDA data points imposed by Dodd-Frank.
The NCUA Board issued a final rule to amend part 709 to update and clarify the procedures that apply to claims administration for federally insured credit unions that enter involuntary liquidation. The rule permits employees of an insolvent credit union subject to involuntary liquidation by NCUA to receive compensation earned in accordance with their contractual employment agreements. Compensation would include accrued but unpaid sick and vacation leave, as well as any severance to which the employee was entitled, provided such terms were documented and objectively-applied. Under prior law, employee claims regarding compensation for work performed and accrued while in liquidation were assigned secondary priority, subordinate among unsecured creditor claims.
CUNA submitted a comprehensive white paper to the Bureau of Consumer Financial Protection to further ensure regulations are tailored and streamlined. CUNA's "Common-Sense Reforms to Bureau of Consumer Financial Protection Rules and Procedures,” is a part of the our continued advocacy efforts following last week's victory with the passage and signing of S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act into law.
President Trump signed S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act into law - enacting a major piece of CUNA-supported bipartisan regulatory relief legislation.
The NCUA Board proposed a rule to provide federal credit unions with an additional alternative option to offer payday alternative loans. Under the proposed framework, PAL II loans would be permitted up to $2000, with no minimum, and a maximum loan term of up to 12 months. Currently, PAL loans are restricted to $200-$1000 and a 6 month term. Comments on the proposal will be due 60 days following publication in the Federal Register.
The Senate Banking Committee met to hold a hearing entitled, "Cybersecurity: Risks to the Financial Services Industry and Its Preparedness.” Prior to the hearing, CUNA sent a letter to Chairman Crapo and Ranking Member Brown highlighting credit unions’ role in protecting member and consumer information.
Credit Union National Association Chief Advocacy Officer Ryan Donovan joined the CUBroadcast show to discuss the credit union industry's big win on Capitol Hill with the House of Representatives passing the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). Donovan talked about the initial reaction from the CUNA offices following the vote.
The Bureau of Consumer Financial Protection (BCFP) announced that along with FinCEN they will host a webinar on financial institutions and law enforcement efforts to combat elder financial exploitation.
Congress passed historic regulatory relief for community financial institutions in S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act this week. Today, the House Financial Services and General Government Appropriations Subcommittee released draft legislation that it intends to consider and vote on tomorrow. The Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 funds critical government programs and also includes numerous regulatory relief provisions for credit unions and banks. While this legislation will face difficulty in the Senate, this bill continues to build upon CUNA’s Campaign for Common-Sense Regulation.
The Senate Banking Committee held a hearing entitled, “Ten Years of Conservatorship: The Status of the Housing Finance System.” Prior to the hearing, CUNA sent a letter to show support of an efficient, effective and fair secondary market with equal access to lenders of all sizes to Chairman Crapo and Ranking Member Brown.
Credit unions that elect to sell mortgages into the secondary market do so for a variety of reasons, but predominantly it is a tool to help them manage long term interest rate risk in order to continue to meet their members’ mortgage lending needs. Particularly today, with long term interest rates at or near historic lows but expected to rise, access to a highly liquid secondary market with relatively low transaction costs is vital for the health of credit union mortgage lending.
After the House passed the bipartisan regulatory relief bill, S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act late Tuesday afternoon CUNA took the opportunity to write to the House Financial Services Chairman and Ranking Member to highlight areas where credit unions need additional regulatory relief.
The victory achieved by CUNA, leagues and credit unions with House passage of S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act was made possible by months of 360-degree advocacy, as the credit union system engaged lawmakers on all levels to express the need for this important legislation.
The House Financial Services Committee met to markup several bills, including H.R. 5841, the Foreign Investment Risk Review Modernization Act of 2018 which contains the risk-based capital provision. Prior to the Committee's markup, CUNA sent a letter of support for Section 701 of H.R. 5841. The provision passed the Committee by a vote of 53-0. Specifically, the provision would delay the effective date to January 2021. It is currently scheduled for January 2019.
CUNA responded to the Bureau's request for information (RFI) regarding their supervision program. In the letter, CUNA wrote that the Bureau should transfer examination and enforcement authority of the largest credit unions to NCUA, CUNA wrote to the Bureau.
“CUNA supports this change as it will enable the Bureau to fully focus its examination and enforcement efforts on Wall Street banks and other abusers of consumers, while ensuring credit unions continue to be adequately supervised by the agency most proficient with its structure and operation,” the letter reads. “In addition, this change would streamline the examination and enforcement efforts for these largest credit unions, which are subject to duel examination or even triple examination for a federally insured state chartered credit union.”
The President signed into law a bipartisan resolution that effectively voids a BCFP rule that provided guidance on indirect auto lending. This resolution not only dissolves the Bureau's guidance on indirect auto financing, it also prohibits the BCFP from issuing any similar rule unless expressly permitted to do so, legally.
The House of Representatives will consider S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. In addition, the House will vote on H.R. 5515, the National Defense Authorization Act for Fiscal Year 2019 and S. 204, the Trickett Wendler, Frank Mongiello, Jordan McLinn, and Matthew Bellina Right to Try Act of 2017.
The Senate will consider the nomination of Dana Baiocco to be a Commissioner of the Consumer Product Safety Commission. The Senate will also consider, “Veterans Choice.”
CUNA sent a letter to Speaker Paul Ryan and House Minority Leader Nancy Pelosi in support of S. 2155 citing several provisions with bipartisan support in both House and Senate.
As mentioned many times before, support for S. 2155 by credit unions is a no-brainer as this bill would:
There is still time to contact your Member of Congress and urge them to vote 'Yes' on S. 2155. Call, tweet, or email your Representative today.
The Bureau of Consumer Financial Protection (BCFP) announced it will host a public forum in Topeka, Kansas to discuss elder financial exploitation on June 8th.
CUNA has heard from multiple sources that the House of Representatives will vote on S. 2155 early next week! There is still time to reach out to Members of Congress and urge them to vote YES on S. 2155.
The Federal Communications Commission (FCC) issued a public notice requesting comments on several issues CUNA has raised regarding the Telephone Consumer Protection Act (TCPA). CUNA has asked the FCC to take action to clarify several aspects of the TCPA after several parts were overturned by the D.C. Court of Appeals in March.
The House Financial Service Subcommittee on Terrorism and Illicit Finance held a hearing entitled, “Implementation of FinCEN’s Customer Due Diligence Rule.” Prior to the hearing, CUNA sent a letter to Chairman Pearce and Ranking Member Perlmutter for the record. In the letter, CUNA wrote that the Treasury’s Financial Crimes Enforcement Network (FinCEN) should continue to work with the financial services industry as any issues with implementation of its customer due diligence (CDD) rule arise.
CUNA commented on the Bureau of Consumer Financial Protection's (BCFP) request for information on enforcement practices. In the letter, CUNA urged the Bureau to delegate to the NCUA primary examination and enforcement of consumer protection laws for credit unions with more than $10 billion in assets.
This week, both chambers of Congress will be in session. The House will consider H.R. 5698, the Protect and Serve Act of 2018; S. 2372, the VA MISSION Act of 2018; and H.R. 2, the Agriculture and Nutrition Act of 2018.
The Senate is expected to continue its consideration of judicial nominations.
The Bureau of Consumer Financial Protection (BCFP) recently released its Spring 2018 Rulemaking Agenda.
CUNA wrote to House and Senate Appropriations Committee leadership in opposition to any recessions from the Capital Magnet Fund (CMF). This fund provides grants to Community Development Financial Institutions (CDFI) credit unions to finance affordable housing.
The Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on mortgage lending transactions at 5,852 U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks, savings associations, credit unions, and mortgage companies. Released this week are loan-level HMDA data that cover 2017 lending activity submitted by financial institutions on or before April 18, 2018.
CUNA President/CEO Jim Nussle continues to urge credit unions to keep up the momentum of support for S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. Coming off the heels of House Republican leadership committing to bring the Senate-passed bill to the floor soon. CUNA issued another action alert to more than 60,000 credit union leaders this week! Now's the time to reach out to your Member of Congress and make your voice heard.
CUNA submitted comments to the NCUA on their proposed suspension and debarment procedures. CUNA supports the NCUA taking administrative action to address due process in the agency's procurement processes.
The House voted in favor of a CUNA-supported joint resolution of disapproval against the Bureau of Consumer Financial Protection’s indirect auto lending bulletin. Prior to the vote, CUNA wrote in support of S.J.Res 57 to House Leadership.
The House passed CUNA-supported H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018 by a voice vote. Prior to the vote, CUNA sent a letter to Committee leadership in support of the legislation.
Credit unions in Iowa saw a major victory Saturday as the state’s legislative session wrapped up when a bill passed without a provision that would have taxed credit unions in the same manner as banks. The victory is the result of CUNA, CUNA Mutual Group and a host of partners from across the credit union system standing with the Iowa Credit Union League and Iowa credit union advocates in waging battle against the provision.
This week, both chambers of Congress will be in session. The House of Representatives is scheduled to consider H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018; H.R. 2152, the Citizens' Right to Know Act of 2017; H.R. 5645, the Standard Merger and Acquisition Reviews Through Equal Rules Act of 2018; S.J.Res. 57, providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by Bureau of Consumer Financial Protection relating to "Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act"; and H.R. 3053, the Nuclear Waste Policy Amendments Act of 2018.
The Senate is expected to consider the nomination of Kurt D. Engelhardt to be a United States Circuit Judge for the Fifth Circuit.
CUNA filed a comment letter with the Bureau of Consumer Financial Protection in response to their latest Request for Information (RFI) on Adjudication Proceedings. CUNA’s comments were sent in response to the latest deadline for feedback in the bureau’s series of requests for information on its functions.
CUNA is actively preparing for this summer’s state legislator conferences. We will join the California and Nevada Credit Union Leagues and the American Association of Credit Union Leagues in a credit union awareness campaign at the Legislative Summit of the National Conference of State Legislator in Los Angeles July 29 – August 2. We will also participate in conference sessions on state and local taxation and financial services.
CUNA staff will be on hand at the American Legislative Exchange Council’s Annual Meeting in New Orleans August 8 – 10 where will participate on the Financial Services Subcommittee, the Tax and Fiscal Policy Working Group and the Commerce, Insurance and Economic Development Working Group.
CUNA joined ACA, ABA, MBA, the Chamber and others in requesting FCC Board action, following the DC Circuit’s ruling that the existing automatic telephone dialing system (ATDS) interpretation was overbroad. The petition was filed at the FCC and requests the Commission to take action to clarify the definition of ATDS for purposes of the Telephone Consumer Protection Act (TCPA).
PHH Corporation has decided against appealing the U.S. Court of Appeals decision. The Bureau of Consumer Financial Protection’s (BCFP) single director structure was upheld by the U.S. Court of Appeals in Washington, DC in the en banc review of the PHH Corporation v. CFPB.
CUNA's President and CEO issued an action alert to credit union advocates to make their voices heard on the bipartisan legislation - S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. It is expected that this important piece of legislation will receive a vote on the House floor by the end of May.
CUNA submitted a comment letter the Bureau of Consumer Financial Protection in response to their Request for Information (RFI) on its Civil Investigative Demand (CID) process. The bureau investigates potential violations by issuing CIDs and compelling testimony at investigative hearings. A CID permits the Bureau to demand production of documents, written responses and oral testimony, among other things.
The Bureau of Consumer Protection announced the finalized amendments to the "Know Before You Owe" mortgage disclosure rule that addresses when mortgage lenders with a valid justification may pass on increased closing costs to consumers and disclose them on a Closing Disclosure. The update is intended to provide greater clarity and certainty to the mortgage industry.
The House Energy and Commerce Subcommittee on Digital Commerce and Consumer Protection will hold a hearing entitled, “Do Not Call: Combating Robocalls and Caller ID Spoofing.” Prior to tomorrow's hearing, CUNA joined a number of trades in sending a letter to Chairman Latta and Ranking Member Schakowsky of the Subcommittee.
CUNA and the trades are seeking clarity from the Federal Communications Commission (FCC) on the definition of an Automatic Telephone Dialing System (ATDS) and looking for new telephone consumer protection guidelines for the industry.
The National Taxpayer's Union (NTU) wrote to the Senate Finance Committee urging them to evaluate the income tax status for large credit unions. CUNA wrote to Chairman Hatch and responded and corrected several falsehoods about the credit union tax status and reiterated that any change to the status would be a direct tax increase on 110 million Americans.
CUNA and the Independent Community Bankers Association (ICBA) wrote a letter to House Speaker Paul Ryan and Minority Leader Nancy Pelosi to request timely floor consideration of S. 2155 – the Economic Growth, Regulatory Relief and Consumer Protection Act.
Chairman Hatch of the Senate Finance Committee wrote to Acting Internal Revenue Service (IRS) Commission David Kautter asking him to consider whether the “largest federal credit unions” should be required to file an annual IRS Form 990. Yesterday evening, CUNA responded to Chairman Hatch stating, “There is no question that credit unions are complying with their tax-exempt purpose, as determined by the Congress in the Federal Credit Union Act. This makes such additional disclosure unnecessary.”
CUNA wrote to the National Credit Union Administration (NCUA) in response to the agency’s advanced notice of proposed rulemaking (ANPR) on ways to streamline, clarify, and improve standard Federal Credit Union Act bylaws. In the letter, CUNA acknowledged the limitations that the Federal Credit Union Act imposes upon NCUA and the credit union industry as a whole. Each recommendation included a statement as to permissibility under the Act.
NCUA Board Chairman J. Mark McWatters’ response letter to the Senate Finance Committee was publicly released. Specifically, the letter was a detailed response to Senate Finance Committee Chairman Orrin Hatch's (R-UT) recent letter to NCUA, questioning the continued policy case for the federal tax exemption for credit unions.
CUNA President/CEO Jim Nussle released the following statement regarding the NCUA response letter:
“We appreciate Senate Finance Committee Chairman Hatch and NCUA Chairman McWatters’ exchange of letters related to the credit union tax status and NCUA’s implementation of the Federal Credit Union Act. America’s credit unions are proud of the service they provide consumers, small businesses and communities, and we welcome the dialogue and awareness. Chairman Hatch asked very reasonable questions related to our tax status and various NCUA actions and procedure. In response, Chairman McWatters correctly states that Congress has conveyed the credit union tax status based on credit unions’ structure as not-for-profit financial cooperatives and their mission to promote thrift and provide access to credit for provident purposes. We are confident that credit unions earn this status every day through the service to their members and communities.”
The CFPB is looking for 12 people to join its credit union advisory council. This is a great opportunity to influence the rulemaking process and represent the credit union movement.
The CFPB extended the application window by one week. The new deadline is April 30, 2018!
This week, the House is expected to consider H.R. 4, the FAA Reauthorization Act of 2018. The Senate is expected to consider S. 140, the Coast Guard Reauthorization Act. In addition, the Senate may consider the nominations of Stuart Kyle Duncan to be United States Circuit Judge for the Fifth Circuit and Mike Pompeo to be Secretary of State.
The CFPB is looking for 12 people to join its credit union advisory council. This is a great opportunity to influence the rulemaking process and represent the credit union movement.
The Consumer Financial Protection Bureau (CFPB) announced a settlement with Wells Fargo for a violation of the Consumer Financial Protection Act (CFPA) in the way Wells Fargo administered a mandatory insurance program related to its auto loans.
Over the past few months CUNA and state credit union leagues have been actively engaged in combating frivolous lawsuits and demand letters that credit unions are facing concerning website accessibility requirements under the Americans with Disabilities Act (ADA). Together, CUNA and state credit union Leagues in Texas, Illinois, Ohio, and Alabama have filed multiple amicus briefs supporting credit unions facing litigation.
NCUA issued a notice to the Court regarding implementing the ruling in ABA’s FOM challenge (not requiring de-listing of members in existence as of April 4) by not granting new charters.
The NCUA Board held their monthly open meeting. As expected, the Board unanimously approved a rule on capital planning and stress testing. The rule provides for tiered application of stress tests, permits credit unions that are required to conduct the exercises to do so on their own, rather than agency-conducted. Additionally, credit unions holding less than $15 billion (increased from $10 billion in the proposed rule) in assets would not be required to perform stress tests, and those credit unions that reach the $15 billion threshold would have three years to begin stress testing. There are 3 credit unions with over $20 billion in assets (Tier 3). The due date for capital plan submissions remains May 31.
CUNA wrote to Senators Scott, Baldwin, Manchin, and Rounds in support of their recently introduced legislation - S. 2702, the Business of Insurance Regulatory Reform Act to clarify the Consumer Financial Protection Bureau’s (CFPB) regulation of insurance products.
The Senate approved its resolution of disapproval for the Consumer Financial Protection Bureau’s (CFPB) indirect auto lending bulletin. CUNA wrote a letter of support for the resolution, which would void the bulletin using the Congressional Review Act (CRA).
CUNA joined a number of trade associations in sending a letter to Chairman Thune and Ranking Member Nelson prior to the Senate Commerce Committee's hearing entitled, "Abusive Robocalls and How We Can Stop Them.” In the letter, the signers noted that it is important to distinguish between robocalls and legitimate businesses seeking to communicate with their customers.
CUNA wrote to Senators Moran and Toomey in support of S.J.Res 57, a joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Consumer Financial Protection Bureau (CFPB) relating to “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act.”
This week, the House of Representatives will consider a number of tax-related bills that passed out of the Ways and Means Committee last week. These bipartisan and unanimously approved bills aim to combat identity theft, repair shortcomings at the IRS, and protect taxpayers. Several of these bills will affect the operations of credit unions and other financial institutions. It is likely that many or all of these bills will easily pass the House and Senate and be enacted into law.
This week, the House of Representatives and the Senate will be in session.
In response to Attorney General Sessions rescinding the Cole Memo (the Obama-era policy that permitted legalized cannabis to expand), Senator Corey Gardner (R-CO) placed a hold on Department of Justice (DOJ) nominees until he received a commitment that Colorado’s legal cannabis industry would not be impacted.
The Consumer Financial Protection Bureau issued its latest Request for Information (RFI). The CFPB requests information on its handling of consumer complaints and inquiries.
Protection Bureau Director Mulvaney was on both sides of the Capitol for
Congressional hearings this week. The
House Financial Services Committee held the first hearing on Wednesday
entitled, “The 2018 Semi-Annual Report of the Bureau of Consumer Financial
Protection.” The Senate Banking Committee’s hearing took place
yesterday. Prior to both hearings, CUNA
sent letters to Chairman Hensarling and Ranking Member Waters and to Chairman
Crapo and Ranking Member Brown highlighting a number of issues with the
CFPB and ways improvements could help credit unions.
The NCUA board will meet next Thursday to finalize proposed rules relating to stress testing/capital planning and advertising/notice of insured status. CUNA issued comment letters on both proposals, indicating that credit unions should not be subject to stress testing, and that credit unions should enjoy the same allowances in radio advertising that banks are afforded.
The CFPB’s Payday and Small dollar lending rule was officially challenged in federal court in the United States District Court for the Western Division of Texas Austin Division. Additionally, the CFPB previously announced it may further review the final rule. It stated, “January 16, 2018 is the effective date of the Bureau of Consumer Financial Protection’s final rule entitled 'Payday, Vehicle Title, and Certain High-Cost Installment Loans' ('Payday Rule'). The Bureau intends to engage in a rulemaking process so that the Bureau may reconsider the Payday Rule.”
Five financial regulators, including the NCUA, issued a joint statement on the use of cyber insurance for credit unions and banks. The statement “describes matters that financial institutions should consider if they are determining whether to use cyber insurance as a component of their risk management programs.” They key takeaway is that credit unions and banks should not to view cyber insurance as a substitute for having strong controls to protect against cyberattacks.
CUNA joined more than 20 financial services trade organizations in support of legislation to replace the Consumer Financial Protection Bureau’s (CFPB) single director with a bipartisan, five-member commission. The bill was introduced by Representatives Dennis Ross, Kyrsten Sinema, Ann Wagner and David Scott and would create a bipartisan, five-member commission to lead the Consumer Financial Protection Bureau (CFPB). H.R. 5266, The Financial Product Safety Commission Act of 2018 is consistent with one of the primary goals of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulations.
The House Financial Services Committee will meet for a hearing entitled "The 2018 Semi-Annual Report of the Bureau of Consumer Financial Protection.” The hearing will feature the first testimony from CFPB Director Mick Mulvaney. Prior to the hearing, CUNA sent a letter to Chairman Hensarling and Ranking Member Waters highlighting a number of issues with the CFPB and ways improvements could help credit unions.
This week, both houses of Congress will be in session. The House will consider several financial services bills.
CFPB Acting Director Mulvaney responded to Senator Elizabeth Warren’s lengthy letter that was sent to the Acting Director in the middle of March. In the letter from March 16, Senator Warren asked more than 100 questions to the Acting Director and raised concerns about the dual role he has by leading both the CFPB and the Office of Management and Budget (OMB).
Acting Director Mulvaney and Senator Warren have been known to spar in the press and public comments, and their letters are no exception. Even Mulvaney’s speech at CUNA’s GAC was noted and highlighted by a number of publications across the country.
A lawsuit against a Texas credit union was voluntarily dismissed by the plaintiff, only days after CUNA and the Cornerstone Credit Union League filed an amicus brief in defense of Local 20 IBEW FCU of Grand Prairie, Texas.
CUNA's Senior Director of Advocacy and Counsel, Leah Dempsey, appeared on the Brownstein Client Conversations podcast to discuss the state of frivolous lawsuits hitting credit unions due to uncertainty with how the Americans with Disabilities Act (ADA) applies to websites.
The Treasury Department released recommendations to reform the Community Reinvestment Act (CRA), a 40-year old law meant to increase access to banking services to low- and moderate-income communities. Credit unions are not subject to CRA, as the law only applies to financial institutions insured by FDIC. The report’s only relevant credit union mention is a statement noting that CRA “does not apply” to credit unions. Among Treasury’s recommendations are updates to how banks are examined for compliance including the definitions of geographic boundaries for CRA exams.
Governor Ivey signed legislation updating the Alabama Credit Union Act. The measure, H.B. 316, was championed by the League of Southeastern Credit Unions and received overwhelming support in both legislative chambers.
CUNA filed a comment letter on NCUA’s request for information relating to Call Report/Profile Content Modernization. The submission commended the agency’s use of working groups to develop recommendations to implement during the rulemaking process.
The U.S. District Court for the District of Columbia upheld two challenged portions of the National Credit Union Administration's field of membership (FOM) rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association (ABA). CUNA, the National Association of Federally-Insured Credit Unions (NAFCU), and CUNA Mutual Group, in a joint statement, disagreed with the court's decision and reiterated their intent to continue to work in support of the agency's authority to issue this rule.
The Consumer Financial Protection Bureau (CFPB) issued its latest request for information(RFI) this week, on the bureau’s guidance and implementation support. This is the latest in the bureau’s series of RFIs on how it performs its functions.
CUNA and the Financial Services Information Sharing and Analysis Center (FS-ISAC) will host a webinar with NCUA examiners to explain the new Automated Cybersecurity Examination Tool (ACET). The free webinar is scheduled for April 5, from 3 to 5 p.m. (ET), and registration is now open.
CUNA’s Chief Advocacy Officer – Ryan Donovan, sent out a survey to credit union CEOs seeking input on ways the Consumer Financial Protection Bureau (CFPB) could make improvements. As part of several initiatives calling for evidence to ensure that the CFPB is fulfilling its functions to protect consumers, the CFPB is requesting feedback and suggestions on ways to improve outcomes for both consumers and the financial providers that serve them.
CUNA and the League of Southeastern Credit Unions filed an amicus brief in another frivolous lawsuit brought against a credit union alleging violations of the Americans with Disabilities Act. The brief was filed in Scott v. Naheola CU in the U.S. District Court for the Southern District of Alabama.
CUNA submitted a comment letter to the NCUA regarding the agency’s proposed rule to permit employees of an insolvent credit union subject to involuntary liquidation by NCUA to receive compensation earned in accordance with their contractual employment agreements.
Earlier this month the D.C. Circuit issued a long-awaited ruling for a legal challenge the Federal Communications Commission’s (FCC) 2015 Omnibus Telephone Consumer Protection Act (TCPA) order was finally released on March 16, 2018. CUNA participated in this litigation in a joint Amici brief with the ABA and ICBA.
CUNA's Senior Director of Advocacy and Counsel, Leah Dempsey, joined CUBroadcast to discuss the decision, what it means for credit unions and what could happen going forward.
The Consumer Financial Protection Bureau (CFPB) has issued a request for information (RFI) on the bureau’s inherited regulations and inherited rulemaking authorities. The CFPB is seeking comments and information parties to assist the bureau in considering whether it should amend the regulations or exercise the rulemaking authorities that it inherited from other federal government agencies.
South Dakota Governor Daugaard signed legislation, S.B. 62, requiring notification to consumers and the state attorney general when there is a “breach of system security.”
The Senate passed S. 2155, the bipartisan regulatory relief bill, by a vote of 67 – 31. This is an important step forward for much-needed regulatory relief. CUNA strongly supported the bill since it was introduced, and CUNA’s aggressive grassroots support of the bill resulted in millions of social media impressions and more than 50,000 messages sent to Senate offices.
This week, the House of Representatives will consider the “TAILOR Act of 2017” (H.R. 1116); the “Financial Examination Fairness and Reform Act” (H.R. 4545); the “Regulation At Improvement Act of 2017” (H.R. 4263); the “Stress Test Improvement Act of 2017” (H.R. 4293); and the “Financial Stability Oversight Council Improvement Act of 2017” (H.R. 4061).
The Senate will resume consideration of the “Economic Growth, Regulatory Relief, And Consumer Protection Act” (S.2155).
The House Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled, “Legislative Proposals to Reform the Current Data Security and Breach Notification Regulatory Regime.” Prior to the hearing, CUNA sent a letter to Chairman Luetkemeyer and Ranking Member Clay showing support for the Chairman’s draft data breach legislation.
The NCUA Board posted the agenda for the March Board Meeting. It includes:
1. Advanced Notice of Proposed Rulemaking, Part 701, Appendix A, Federal Credit Union Bylaws.2. Request for Comment, Proposed Suspension and Debarment Procedures.
The Senate Special Committee on Aging held a hearing today entitled, “Stopping Senior Scams.” Prior to the hearing, CUNA sent a letter in support of efforts to help protect seniors from financial exploitation and to empower seniors to make responsible decisions regarding their financial lives.
CUNA and the Ohio Credit Union League filed an amicus brief supporting Dover-Phila Federal Credit Union, who is facing a frivolous lawsuit alleging non-compliance with website accessibility standards under the Americans with Disabilities Act (ADA). This is the latest of multiple briefs CUNA has filed in conjunction with state leagues in similar cases.
The Federal Reserve proposed changes to simplify Reg J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire) and to make it conform more closely with Reg CC (Availability of Funds and Collection of Checks). The proposed amendments are intended to align the rights and obligations of parties, including the Federal Reserve Banks, with the Fed’s 2017 amendments to Reg CC, which reflected the evolution of the nation’s check collection system from one that is largely paper-based to one that is virtually all electronic.
This morning the Senate passed a critical procedural vote to start debate on S. 2155, the Economic Growth, Regulatory Reform and Consumer Protection Act. Prior to this morning’s vote, CUNA sent a letter to Senate Majority Leader McConnell and Minority Leader Schumer in support of the important bipartisan legislation. In the letter, CUNA highlighted the common-sense regulatory reforms supported by America’s credit unions.
CUNA joined with other financial trade associations to write to Congress to correct a number of falsehoods contained in a recent retailer communication to Congress on data breaches. Retailers are attempting to push back against strong national data security standards, despite a lack of such standards causing major data breaches that bring additional costs to credit unions. CUNA strongly supports draft data breach legislation that would enact a strong security and notification standard and shift the costs of a data breach to the entity that caused it.
The CUNA-supported TRID Improvement Act of 2018 passed the House of Representatives. The bill would amend the Real Estate Settlement Procedures Act to require the Consumer Financial Protection Bureau to allow the accurate disclosure of title insurance premiums and any potential available discounts to homebuyers.
CUNA and the Cornerstone Credit Union League filed a motion for leave to file a brief supporting the BCM Federal Credit Union that is facing a frivolous lawsuit alleging website noncompliance under the ADA. The brief supports Houston-based credit union’s motion to dismiss the lawsuit brought against it.
Credit unions are being hit with virtually identical frivolous lawsuits from plaintiffs' firms exploiting a law designed to protect those with disabilities. CUNA anticipates taking similar actions in several cases in the coming weeks to maximize our impact on behalf of all credit unions and to ensure we preserve our arguments for any litigation that makes it to the appellate level.
CUNA and NAFCU sent a letter to Chairman Hatch in response to a letter sent by the state banking trade associations. In the letter, CUNA and NAFCU reiterated that credit unions have been, and will continue to be, the best avenue for Americans to gain access to affordable financial services and products.
“Banking lobbyists would like the tax status to be limited based on the products or services credit unions offer, the size of credit unions individually and as a sector of the financial services industry, their efforts to support their community and raise overall awareness, and other factors,” the letter reads. “But these factors have nothing to do with why Congress originally conveyed the tax status, nor why it continues to be extended. The fact is credit unions’ structure has not changed and they continue to fulfill their mission.”
The Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) on the bureau’s external engagements. Specifically, the bureau is seeking comments and information from interested parties on ways to engage the public and receive feedback on the work of the agency.
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© 2018 Credit Union National Association
ADA Compliance Notice & Legal
© 2018 Credit Union National Association
ADA Compliance Notice & Legal