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The Senate just passed the second appropriations bill. The first one (that included the tax provisions and the NFIP extension) cleared the Senate earlier today. The president has indicated that he will sign both bills.
Earlier this week, CUNA wrote to Congressional Leadership urging them to support H.R. 1158, the Consolidated Appropriations Act for Fiscal Year 2020 and H.R. 1865, the Further Consolidated Appropriations Act for Fiscal Year 2020. CUNA worked with House and Senate appropriators to fund several priorities for credit unions that are included in this legislation
CUNA wrote to Majority Leader McConnell, Democratic Leader Schumer, Speaker Pelosi, and Republican Leader McCarthy urging them to support H.R. 1158, the Consolidated Appropriations Act for Fiscal Year 2020 and H.R. 1865, the Further Consolidated Appropriations Act for Fiscal Year 2020. CUNA worked with House and Senate appropriators to fund several priorities for credit unions that are included in this legislation.
CUNA wrote to Senator Cruz in support of his recently introduced legislation, S. 3003 - the Financial Institution Customer Protection Act. If enacted, this bill would limit Federal banking regulators’ ability to discourage or restrict depository institutions from entering into or maintaining a financial services relationship with specific customers unless certain criteria are met. S. 3003 strikes the correct balance between combating fraud and maintaining financial institution integrity.“While we strongly support the government’s role in ensuring the integrity of financial markets and eliminating fraud, the Operation Choke Point program’s broad enforcement tactics may have created unnecessary risks to consumers and to the economy,” the letter reads. “Credit unions are committed to maintaining the ability to serve their members while strictly following all laws and governing regulations. S. 3003 is a reasonable approach to preventing fraud and maintaining financial integrity without overreaching.”
The NCUA, OCC,
FRB, and FDIC have proposed two documents intended to update existing
regulatory accounting guidance in light of FASB’s credit losses standard, which
includes the current expected credit loss (CECL) methodology.
Interagency Guidance on Credit Risk Review Systems: This proposed guidance describes the
elements of a credit risk review system that should be reviewed and approved by
an institution’s board of directors (or appropriate board committee) at least
annually. In general, we believe the proposed guidance describes a broad set of
practices that an institution—including most credit unions—can use to form a
credit risk review system that is consistent with safe-and-sound lending
practices. Further, we believe the proposed guidance generally reflects current
sound practices for an institution’s credit risk review activities.
CUNA filed an amicus brief with the U.S. Supreme Court in a
case considering the constitutionality of the CFPB’s single-Director structure
and the appropriate remedy to cure any constitutional defect.
In its brief, CUNA agrees with Seila Law and the CFPB in
arguing that the Bureau’s current structure does not pass constitutional
scrutiny and violates the separation of powers. CUNA argues that the creation
of a multi-member leadership commission would remedy the defect while
preserving the consumer protection benefits of the agency. To achieve this,
CUNA encourages the Court to hold Title X unconstitutional but stay the effect
of that decision to allow the political branches time to enact such a
commission structure to lead the Bureau.
This week, the House of Representatives is expected to vote
on two articles of impeachment against President Trump. In addition,
the House may vote on passage of the United States-Mexico-Canada
Agreement (USMCA) as well as H.R. 5377, the Restoring Tax Fairness for
States and Localities Act. The House may also vote on a bill to fund
the government through the end of Fiscal Year 2020.
Senate is expected to vote on the FY 2020 funding bill after it is
passed by the House. Also, the Senate is also expected to vote on the
conference agreement to S. 1790, the National Defense Authorization Act
The federal government runs out of spending authority at midnight on December 20, 2019. It
is possible that the House will consider two bills on Tuesday to fund
the government through the end of the fiscal year. It is customary for
the House to make the text of these bills public 48 prior to their
consideration on the House floor. CUNA continues to advocate for full
funding for credit union priorities.
CUNA joined a number of trade associations in sending a
letter to Chairman Crapo and Ranking Member Brown in support of the SAFE
Banking Act."As a national, diverse, multi-sector
collection of broad stakeholders impacted by the legal cannabis industry
in the U.S., we request that you bring the SAFE Banking Act (H.R. 1595)
before the Committee. As you are aware, the House of Representatives
passed SAFE on September 25th with an overwhelmingly bipartisan vote of
321 – 103. This represents the bipartisan support for the issue and the
first time in history that any Congress voted on meaningful cannabis
The U.S. Court of Appeals for the D.C. Circuit denied the American Bankers Association’s appeal for a rehearing en banc in its lawsuit against NCUA’s field of membership rule. CUNA filed a brief in support of NCUA in the initial hearing, and strongly supports NCUA’s field-of-membership rule.
The House Financial Services Committee held a two-day
markup. CUNA wrote to Chairwoman McWatters and Ranking Member McHenry
expressing support for two bills supporting Minority Depository
Institutions (MDIs), both passed the Committee with strong support.
H.R. 5315, Expanding Opportunities for Minority Depository Institutions (MDIs) Act Codify the Treasury Department’s mentor
protégé program to encourage collaboration between Minority Depository
Institutions and large financial institutions. This program represents a
valuable resource for MDI credit unions because it offers an
opportunity to bolster their sustainability. The bill passed with a 57-0
H.R. 5322, the Ensuring Diversity in Community Banking Act of 2019 Encourage federal government deposits
in MDIs, establish a Small Business Administration task force focused on
MDIs and CDFIs, and require diversity and inclusion reports from each
prudential regulator. Minority Depository Institution credit unions
represent an important way in which credit unions are fulfilling their
mission by advancing financial inclusion and well-being for minority and
underserved communities. The bill passed with a 52-0 vote.
CUNA wrote to all 535 Congressional offices highlighting the credit union difference and financial health. This holiday season, the average consumer will spend more than $1,000 on gifts and related expenses and credit unions are there to ensure consumers maintain their financial health.
The NCUA Board adopted its 2020 - 2021 budget, adopted a final rule to delay the effective date of the RBC rule, and received a briefing on the Normal Operating Level of the Share Insurance Fund for 2020.
Last night the Conference Committee released the final version of the fiscal
year 2020 National Defense Authorization Act (NDAA) without a provision that
would have allowed certain banks to obtain cost waivers to operate on military installations.
Throughout 2019, this fight to preserve the credit union difference has
been a major advocacy goal for CUNA, Leagues, and credit unions. Advocates
have maintained that banks — which profit off servicemembers to benefit Wall
Street investors — should not be granted the same rent-free access afforded to
credit unions that meet certain provisions in addition to delivering the not-for-profit
mission and member-owned structure to bases at home and abroad.
comments to the NCUA in response to their Chartering and Field of Membership Proposed Rule,
the latest field-of-membership proposal, as it reinstates portions of
the 2016 rulemaking that were vacated by a U.S. District Court decision.
The proposal would re-adopt a provision to allow an applicant to designate a
Combined Statistical Area (CSA), or an individual, contiguous portion thereof,
as a well-defined local community (WDLC), provided that the chosen area has a
population of 2.5 million or less.
CUNA wrote to office of the California Attorney General in regards to the proposed regulations concerning the California Consumer Privacy Act (CCPA). The law’s definition of “business” needs further clarification, CUNA wrote, as the definition in the bill does not address not-for-profit status. CUNA also seeks additional guidance on the “doing business in California” requirements, as the vast majority of credit unions are outside of California and likely do not seek to serve California residents.
“Some businesses with few customers in California may elect not to serve customers who live in the state, but credit unions cannot easily do this as they, by law, cannot close member share accounts without a vote of the membership of the credit union – a process that is involved and impractical for this purpose,” the letter reads. “A company should be allowed to serve a de minimis number of California residents without meeting the “doing business in California” requirements to allow for isolated instances where a business, such as a credit union, must provide services to California residents by law, yet does not seek to market itself in California or open accounts for California residents.”
This week, the House of Representatives will consider H.R. 3, the Elijah E. Cummings Lower Drug Costs Now Act and H.R. 729, the Tribal Coastal Resiliency Act.
The Senate will vote on the nomination of Patrick J. Bumatay to be U.S. Circuit Judge for the Ninth Circuit.
Are you members safe from Business Email Comprise scam?
Business Email Compromise (BEC) is a sophisticated scam that targets both businesses and individuals performing wire transfer payments or other means of electronic fund transfers (EFTs).
Join FS-ISAC and CUNA for a free webinar on December 17th, 2019 that will provide informative information and tips on how your credit union can safeguard members from sophisticated business email scams like this one, and others that may arise.
The NCUA released the agenda for their December Board meeting to be held on December 12th in Alexandria, VA.
MATTERS TO BE CONSIDERED:
During the House Financial Services Committee with prudential regulators, Chair McWilliams of the Federal Deposit Insurance Corporation (FDIC) expressed worry over the impacts of credit unions purchasing banks. In response, CUNA wrote to Chair McWilliams about how her comments were misinformed, inaccurate and, frankly, something credit unions would expect to hear from a banking lobbyist, not a banking regulator.
In the letter, CUNA wrote “While still extraordinarily rare relative to the number of bank mergers, credit union-bank transactions take place because they are good business decisions for the parties involved, as well as the consumers, small businesses and communities involved. Consumers benefit by gaining access to strong, responsible community-focused financial services. Communities benefit because credit unions provide more than $4 billion in indirect consumer benefits, especially in underserved areas that often have no other affordable option for financial services. And, clearly, bank investors benefit, or why would the bank sell in the first place?”
The House voted to pass the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, legislation designed to combat unwanted robocalls via the Telephone Consumer Protection Act. Specifically, the TRACED Act is a bipartisan effort to pass legislation that addresses illegal robocalls and seeks to impr
CUNA wrote to Chairwoman Waters and Ranking Member McHenry reiterating that credit unions and the financial services industry are dedicated to protecting customer information along with working to ensure that systems used to provide financial services to Americans are robust, secure and resilient. CUNA appreciates the Committee’s strong commitment in overseeing the financial services sector and agree that cybersecurity, specifically the vulnerability of financial or institutions to cyberattacks is an important iss
Prior to the House Financial Services Subcommittee hearing on the Federal Housing Administration, CUNA wrote to Chairman Clay and Ranking Member Stivers explaining that the Federal Housing Administration (FHA) plays a critical role in homeownership, yet impediments exist keeping credit unions from accessing the FHA lending program. “Chief among these is the absence of a FHA regulatory environment where lenders can operate with clarity and certainty regarding the program requirements and the potential penalties for noncompliance. Recently, the Department of Housing and Urban Development proposed amendments to the FHA lender annual certification statements designed to increase lender confidence. We welcome the FHA’s commitment to provide the clarity and certainty necessary to increase lender participation in the FHA program."
The House Financial Services and Senate Banking each held hearings to hear semi-annual testimony from the prudential regulators, Chairman Hood testified on behalf of the NCUA. Prior to each hearing, CUNA wrote to the Chair and Ranking Member (HFSC and Senate Banking) highlighting positive steps by the NCUA as well as issues where improvements can be made.
this week, CUNA
wrote to Chairman Wicker and Ranking Member Cantwell prior to the Senate
Commerce Committee hearing entitled, “Examining Legislative
Proposals to Protect Consumer Data Privacy.” In the letter, CUNA wrote about the concern
credit unions have for Americans’ financial
wellness is compromi
The Federal Reserve System will host an Outlook Live Webinar on December 12th at 2:00 p.m. E.T., featuring a discussion on Regulation E error resolution requirements. The "Outlook Live" webinar series is a Federal Reserve System initiative produced in conjunction with the Fed's Consumer Compliance Outlook newsletter.
Reg E specifies procedures that institutions must follow when investigating and resolving electronic fund transfer (EFT) errors alleged by consumers (e.g., unauthorized or incorrect EFTs). The regulation also specifies the extent to which a consumer can be held liable for unauthorized EFTs.
In a positive development for credit unions, the Bureau issued a notice of proposed rulemaking (NPRM) to amend the Remittance Transfer Rule.
CUNA, leagues, and credit unions have raised the need to amend the remittances rule in multiple in-person meetings with CFPB leadership in recent years. Recently, CUNA submitted a letter to the Bureau calling for the “normal course of business” threshold to be raised.
The CFPB’s NPRM would increase the Rule’s “normal course of business” safe harbor threshold from 100 remittance transfers to 500 remittance transfers annually. According to a release, this threshold increase would “reduce burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittances.”
CUNA sent NCUA a letter detailing suggestions on how NCUA can improve its proposed budget. The letter follows CUNA Chief Economist Mike Schenk’s presentation last week to the NCUA Board regarding the proposed budget. While CUNA supports aspects of the proposed budget
This week, the House of Representatives will consider S. 151, the Pallone-Thune TRACED Act; H.R. 2534, the Insider Trading Prohibition Act; and H.Res. 326, Expressing the sense of the House of Representatives regarding United States efforts to resolve the Israeli-Palestinian conflict through a negotiated two-state solution.
The Senate will consider several judicial and executive branch nominations.
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© 2019 Credit Union National Association
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