CUNA Regulatory Advocacy Report

Reminder: CFPB is Still Accepting Nominations for Open Council Positions

The CFPB is still accepting applications for vacancies on the Consumer Advisory Board and Credit Union Advisory Council, with positions beginning in the fall of 2015. We would like to coordinate with CUNA members on this to ensure we maximize the likelihood that pro-active credit union representatives will be selected. Information on the application process and the application itself can be found here. The process includes submitting an application, resume, and third-party letter of recommendation for the nominee. Application packets are due to the CFPB by COB February 28, 2015, and can be submitted electronically to CFPB_BoardandCouncilApps@cfpb.gov. Please let Mary Dunn and Jackie Ekdahl know by February 15 who you plan to nominate.

CUNA Seeks Comments on CFPB’s Small Creditor and Rural Areas Proposed Rule 

As we discussed in a previous edition of CUNA’s Regulatory Advocacy Report, the CFPB recently proposed several amendments to Regulation Z concerning mortgages made by small creditors and those in rural and underserved areas. Based on our initial review, many of these amendments will be favorable for credit unions, but we are continuing to study the proposal in detail to determine the impacts on credit unions in the area of mortgage lending. Late last week, we posted our Comment Call and survey relating to the proposal. The comments are due to the CFPB by March 30 and to CUNA by March 16. If you have thoughts, concerns, or questions regarding the proposal and its potential impact on your credit union, please let us know as soon as possible by either responding to our survey, or contacting Mary Dunn or Jared Ihrig

CUNA Supports NACHA’s Objective but Cites Significant Concerns with Same Day ACH Proposal 

Last week, CUNA filed a comment letter with NACHA regarding its proposed Same Day ACH rule that would provide a new, ubiquitous capability for moving automated clearinghouse (ACH) payments faster. As described in our letter, we support NACHA’s objective to provide a faster payments option on the ACH network. However, we continue to have significant concerns that requiring all Receiving Depository Financial Institutions (RDFI) to receive and post Same Day ACH payments would result in significant implementation, ongoing, and other costs, especially for smaller credit unions and other financial institutions.

We stressed to NACHA, that RDFIs, including smaller credit unions, will incur increased costs in numerous areas under the proposal and will generally receive only a limited number of Same Day ACH transactions and limited benefits. Additional concerns include increased costs and effects on corporate credit unions, third parties, and correspondents that provide ACH and other payment services for credit unions. We urge NACHA to minimize the costs not only on credit unions directly but also on those entities that provide ACH and payment services to credit unions serving consumers and small businesses directly.

In addition to minimizing costs, NACHA should consider alternative approaches to Same Day ACH that could be less costly for financial institutions. For example, NACHA should consider exempting small institutions from Same Day ACH because these institutions are likely to receive very few same-day transactions and have very limited resources.

NCUA to Live-Stream Next Board Meeting

Last week, NCUA announced that, starting with its February meeting, the agency will live-stream the Board’s monthly meetings. CUNA requested live video streaming in advance of the January board meeting, where the NCUA’s revised risk-based capital proposal was unveiled. While agency staff were not able to accommodate streaming of the January meeting, CUNA and others were allowed to record the proceedings. Registration to watch the February 19 meeting is now open. CUNA encourages credit union officials to register and view the monthly meetings.

FFIEC Revises Business Continuity Planning Booklet

The Federal Financial Institutions Examination Council (FFIEC), which includes NCUA, recently issued a revised Business Continuity Planning Booklet that is part of the FFIEC Information Technology Examination Handbook. The update adds a new appendixStrengthening the Resilience of Outsourced Technology Services, which highlights that a financial institution’s reliance on third-party service providers to perform or support critical operations does not relieve a financial institution of its responsibility to ensure that outsourced activities are conducted in a safe and sound manner. Credit unions are encouraged to review the appendix to ensure that their management of third-party service providers that perform or support critical operations is done so in a safe and sound manner.

Current CUNA Regulatory Calls to Action

  • CFPB Proposes Safe Student Account Scoreboard (comments due by March 9)
  • NCUA Seeks Input on its EGRPRA Regulatory Review (comments due by March 19)
  • CFPB Proposes Prepaid Card Rule (comments due by March 23)
  • CFPB Issues Proposal on Rural and Underserved Areas (comments due by March 30)
  • NCUA Issues New Risk-Based Capital Proposal (RBC2) (comments due by April 27)

For other items of interest, visit CUNA’s Regulatory Advocacy page.

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