CUNA Regulatory Advocacy Report

CUNA Regulatory Advocacy Report: January 4, 2013  

Good afternoon.  Here is an update on the issues that CUNA’s Regulatory Advocacy group has been pursuing in recent days. 

  • New Comment Call on CFPB Trial Disclosure Policy
  • CUNA Seeks Additional Input and Releases Survey on New CFPB Remittance Transfers Proposal
  • FDIC Report on Mobile Payment Risks
  • FHFA Reports Delinquency Decline for Some Loans Backed by Fannie Mae and Freddie Mac
  • CUNA Chart of Current Rulemakings: Current as of 1/4/2013

New Comment Call on CFPB Trial Disclosure Policy

As we reported to you in our December 14, 2012 Regulatory Advocacy Report, the CFPB is considering whether to allow credit unions and other financial services companies to conduct trial consumer disclosure programs on a case-by-case basis.  In line with the agency’s proposal, we have posted a new CUNA Comment Call today on our website.  We encourage all leagues and member credit unions to weigh in on this proposal, and provide your comments to us by Friday, February 1, 2013.  CUNA continues to work with the Bureau to advocate for more action on the part of the CFPB to lessen the regulatory burden on credit unions, and this will be a central theme that we continue to reiterate throughout the course of this year.

CUNA Seeks Additional Input and Releases Survey on New CFPB Remittance Transfers Proposal

As reported in recent weeks, the CFPB has issued a new proposal on remittance transfers that would delay the effective date and refine three elements of the final rule.  CUNA has provided an updated comment call and survey on the new proposal.  We encourage leagues and credit unions to submit comments to CUNA regarding the delayed effective date by January 11, 2013 and submit the survey and comments to CUNA on the rest of the proposal by January 22, 2013.  We continue to work with the CFPB and regulators, leagues, credit unions, and others to advocate for meaningful relief on the remittance transfers regulation. 

In addition, CUNA is planning to host a call for leagues and credit unions that offer international remittance services regarding the CFPB’s pending changes to its remittances rule.  We will be providing more specific information about that call shortly but wanted to make sure you are aware of the call, which will be January 14, 2013 at 3 to 4 PM ET.

FDIC Report on Mobile Payment Risks

In December, the Federal Deposit Insurance Corporation (FDIC) released a report regarding mobile payment risks in its Supervisory Highlights (Winter 2012 Edition).  The report discusses the current mobile payments landscape, mobile payment risks, and the existing legal and regulatory framework.  Financial institutions and their third-party providers should manage the different risks associated with mobile payment transactions, including fraud, compliance, Bank Secrecy Act/ Anti-Money Laundering, and reputational risks.  We continue to monitor and work on mobile payment issues with our Payments Policy Subcommittee and our BITS Liaisons Task Force.    

FHFA Reports Delinquency Decline for Some LoansBacked by Fannie Mae and Freddie Mac

The Federal Housing Finance Agency (FHFA) reported in its third quarter 2012 Foreclosure Prevention Report that the number of loans backed by Fannie Mae and Freddie Mac in serious delinquency (loans delinquent for 90 or more days) has dropped below 1 million for the first time since the summer of 2009.  Loans delinquent by 60-plus days also declined; however, there was an increase in loans delinquent for 30 to 59 days. 

The report also details other quarterly loan trends at Fannie and Freddie, which include an overall increase in foreclosure prevention and refinance activities.  Included in these activities were increases in loan modifications and short sales.  Repayment plans, forbearance plans, charge-offs-in-lieu and deeds in-lieu decreased in the third quarter. 

The report specifically highlighted the following:

  • Fannie and Freddie completed approximately 134,200 foreclosure prevention actions in the third quarter, bringing the total to more than 2.5 million since the start of conservatorship in September 2008. Over 2.1 million of these actions have helped borrowers to stay in their homes including nearly 1.3 million permanent loan modifications.
  • Approximately 45 percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent.
  • More than one-third of loan modifications completed in the third quarter included principal forbearance.
  • Fewer than 15 percent of loans modified in the fourth quarter of 2011 had missed two or more payments, nine months after modification.
  • Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.

The full report which provides detailed state by state information along with specific information on various federal programs to help homeowners can be found here.       

Conclusion

As always, we appreciate the positive comments we continue to receive about this report and suggestions for items you would like us to cover are always welcome. For any questions about this week’s report please feel free to contact Eric Richard or me.

Mary Mitchell Dunn
Senior Vice President and Deputy General Counsel

Posted in Advocacy News.