CUNA Advocacy Update

Congress serves up a number of IRS reform bills… CUNA, Leagues and Credit Unions meet with CFPB on HMDA and payday lending… CFPB responds to Schiff-Stivers letter… HFSC passes CFPB reform bill… LSCU secures passage of charter enhancement legislation in Alabama.

All of this and more in this week’s CUNA Advocacy Update…

This Week… The House is expected to consider H.R. 1206, No Hires for the Delinquent IRS Act; H.R. 3724, Ensuring Integrity in the IRS Workforce Act of 2015; H.R. 4885, IRS Oversight While Eliminating Spending (OWES) Act of 2016; and H.R. 4890, to impose a ban on the payment of bonuses to employees of the Internal Revenue Service until the Secretary of the Treasury develops and implements a comprehensive customer service strategy.

The Senate is expected to resume consideration of H. R. 636, the vehicle for the FAA reauthorization. The Senate may also consider H. R. 2028, an Energy and Water Appropriations bill, and as S. 2012, the Energy Policy Modernization Act.

The committee schedule is relatively light this week, with the House Financial Services Committee holding hearings on the Iran Nuclear deal and terrorist financing. The Senate Banking Committee will hold a hearing on the Securities and Exchange Commission and the Office of Credit Rating. A previously announced hearing in the Senate Small Business Committee on the Department of Labor’s Overtime proposal has been postponed.

Ohio Credit Unions, League and CUNA meet with CFPB to Discuss Small Dollar Loans: Ohio credit unions, representatives from the Ohio Credit Union League and CUNA met with CFPB officials to discuss the potential consequences of an anticipated small dollar loan proposal. [More]

CUNA Meets with CFPB to Discuss HMDA Resubmission Guidelines: CUNA and several credit unions met with the CFPB last week to discuss the Home Mortgage Disclosure Act (HMDA) and the CFPB’s resubmission guidelines. Representatives from the various prudential regulators also joined the meeting by phone. [More]

CFPB Responds to Unprecedented House Sign-On Letter:  As you may recall, following the GAC, 329 Members of the House of Representatives sent a letter organized by CUNA and the Leagues to the CFPB, encouraging the Bureau to use its statutory exemption authority to better tailor its regulations to reduce impact on credit unions and small banks. This week, CFPB Director Cordray responded to the letter. [More]

Pending Regulatory Comment Calls: CUNA intends to comment on the following pending regulatory proposals. For our comment letter to have the greatest impact, we need to hear from you. Please consider whether and how these proposals would affect your credit union, and contact the CUNA staff listed with each proposal with your feedback 

We encourage Leagues and credit unions to use PowerComment to file comment letters with regulators. For more information regarding these proposals, please follow the links below:

 

Issue Comment Period Deadline

Agency

CUNA Staff Contact
Operations in Rural Areas under TILA (Reg Z) April 23, 2016 CFPB Andy Price
Overhead Transfer Rate Methodology April 26, 2016 NCUA Andy Price
Operating Fee Methodology April 26, 2016 NCUA Andy Price
Draft National Strategy for Financial Literacy Update May 11, 2016 Treasury Luke Martone
New Info Collection Request – Regulation I: Disclosure Requirements for Depository Institutions Lacking Federal Deposit Insurance May 23, 2016 CFPB TBD
Info Collection: Central Liquidity Facility May 23, 2016 NCUA TBD
Proposed Info Collection: Investment and Deposit Activities May 31, 2016 NCUA TBD

 

State Legislatures Face Budget Deadlines:  As a number of states face looming deficits and struggle to enact budgets, the National Conference of State Legislators (NCSL) is closely tracking the progress of state budget bills. According to NCSL, fiscal year 2017 begins July 1, 2016 in 46 states. New York began its fiscal year on April 1, Texas begins its fiscal year on Sept. 1 and Alabama and Michigan begin theirs on Oct. 1.  Despite state fiscal years drawing near, only 26 states have enacted budgets. Like NCSL, we are also monitoring the state budget bills, because as you are well aware, our banker “friends” commonly offer credit union taxation as a means to fill budget gaps.

HFSC Passes CFPB/Appropriations Bill: Last week, the House Financial Services Committee marked-up two bills, including a CUNA-supported measure. H.R. 1486, the “Taking Account of Bureaucrats’ Spending Act of 2015”, would place the CFPB under the appropriations process. Since the inception of the Bureau, we have believed that the most appropriate funding scheme for the Bureau would be under the appropriations process. This change would strengthen Congressional oversight, and incentivize the Bureau to focus its attention on the abusers of consumers.

The other bill under consideration would repeal Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Title II deals with the orderly liquidation for large, failing financial institutions. [More]

Over on the Removing Barriers Blog CUNA reiterates support for credit union tax status…  League of Southeastern Credit Unions secures Alabama charter improvements… DC Circuit Court questions the constitutionality of CFPB single-director structure…  CUNA reminds House subcommittee that JOBS Act could have more impact with increase in MBL cap

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