CUNA Advocacy Update

This Week… Both the House and the Senate will be in session this week, but will recess next week. When the chambers conclude their business at the end of the week, they will be out of session until the week of May 8. The legislation before each chamber this week is not directly relevant to credit unions; however, it is worth noting that the House is scheduled to consider a resolution of disapproval of the Department of Labor’s recently finalized rule defining “fiduciary.” You may recall that the final rule addresses many of the concerns that CUNA raised during the comment process.

As usual, CUNA is participating in and following several meetings in Washington, including the following:

On Monday, CUNA will participate in the FHFA’s industry roundtable discussing the proposed rule on Fannie Mae and Freddie Mac’s “duty to serve” (DTS). Jerry Reed of Members First Mortgage and Andy Price, CUNA Senior Director of Advocacy and Counsel, will represent CUNA. The discussion will focus on possible alternative approaches for Fannie and Freddie to evaluate DTS performance. Otherwise known as the Enterprises, Fannie and Freddie have a statutory duty to serve very low-, low- and moderate-income families. CUNA commented on the agencies proposal earlier this year and continues to work to shape the proposal in a manner that benefits all credit unions.

On Tuesday, the Senate Finance Committee will hold a hearing entitled, “Navigating Business Tax Reform.”

On Wednesday, the House Financial Services Committee Subcommittee on Monetary Policy and Trade will hold a hearing on Development Bank Accountability.

CFPB to Hold Arbitration Hearing on May 5: We expect that the proposed rule for arbitration will be released in conjunction with the hearing. [More]

Colorado Charter Enhancement Bill Enacted: After months of lobbying policymakers, the Mountain West Credit Union Association was successful in enacting legislation, S 125, that modernizes the Colorado Credit Union Act to reflect the current financial services environment and reduce governance redundancy. The bill permits state chartered credit unions to compensate directors and to substitute an audit committee for a supervisory committee. [More]

CFPB Payday Lending Report Highlights Dangers of Unregulated Lenders: This week the CFPB released a report about online payday loans. The report is based on data from an 18-month period in 2011 and 2012 that looked at online payday and certain online installment loans made by 332 lenders. The data in the report stems from the supervisory process prior to 2013, so would only include data from an extremely minor fraction of the number of credit unions across the country. It also does not account for law changes since 2011 including updated NACHA rules concerning presentment, and the elimination of the deposit advance product at most banks. [More]

NCUA Board Approves Reissue of Executive Compensation Proposal: At its meeting last week, the NCUA Board received a report of the National Credit Union Share Insurance Fund Quarterly Report, authorized for publication a Proposed Interagency Rule, Parts 741 and 751, Incentive Based Executive Compensation, and a Proposed Rule, Parts 701 and 721, Federal Credit Union Occupancy, Planning, and Disposal of Acquired and Abandoned Premises, Incidental Powers. [More]

CFPB Applauded for Adopting CUNA-Advocated Threshold for Rural/Underserved Areas: CFPB’s Interim Final Rule on Operations in Rural Areas under the Truth in Lending Act’s Regulation Z implements the Helping Expand Lending Practices in Rural Communities Act, CUNA-supported legislation that was enacted last year. [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

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

FASB to address cost/benefits of CECL Proposal: FASB will continue deliberations of its credit impairment proposal (referred to as the CECL or current expected credit loss model). Specifically, the FASB Board will meet to discuss the costs and benefits of the standard as well as its effective date. As mentioned in a previous blog post, we are glad FASB is beginning to listen to our concerns, as evidenced by some positive changes announced at a FASB meeting earlier this month. Specifically, the Board agreed to changes to make the proposal more flexible and scalable for credit unions and other covered entities, which will allow them to avoid the use of complex modeling systems to determine their loan-loss reserves. FASB expects to issue a final standard by June.

Over on the Removing Barriers Blog… CUNA supports bills to establish advisory committees at Treasury, to study HMDA rule impact, and to end Operation Choke Point… Congressional resolution introduced to stop fiduciary rule… Senate Finance Committee passes bill to curb identity theft and tax refund fraud

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