CUNA Advocacy Update

Action Alert: CFPB’s Small Dollar Loan Proposal:

The Consumer Financial Protection Bureau (CFPB) released an extremely complex 1300+ page small dollar rule in early June. The proposed rule includes some reforms to predatory lending practices, which credit unions would support if narrowly tailored. Unfortunately, the CFPB’s proposed rule badly misses the mark of targeting predatory behavior, and instead threatens to limit consumer-friendly alternatives to short-term, small dollar loans.  We encourage you to share your story with the CFPB, and tell them the negative impact this rule will have on your ability to provide services to your members. The comment period closes on October 7. 

CUNA Advocacy on MLA Rule Continues:

Last week, we sent a letter to NCUA seeking clarification on a number of issues related to the Department of Defense’s Military Lending Act regulation and recently released guidance. We’re asking NCUA to answer ongoing questions related to: purchase money loans, ancillary products, statutory liens, the definition of “vehicle,” and the possibility of a safe harbor.  This follows a letter we sent to DoD in late August urging a minimum six-month delay of the October 3 effective date of the MLA regulation. In the absence of a delayed effective date, that letter sought a safe harbor of at least six months for lenders that are working to comply with the rule but are unable to do so by October 3.    

This week, CUNA Advocacy and Compliance staff will be meeting with NCUA to address these and other continuing concerns with the MLA rule. [Read More]

Congress Is Still at It…

The House is expected to consider H.R.343, the “REVIEW Act of 2016”; H.R.5461, the “Iranian Leadership Asset Transparency Act”; and H.R.5719, the “Empowering Employees through Stock Ownership Act.”  The Senate will attempt to invoke cloture on the motion to proceed to H.R.5325, the legislative vehicle for the short-term CR. 

As usual, we are following several hearings on both sides of the Capitol. Two specific hearings deserve additional attention.  

On Tuesday, the Senate Banking, Housing and Urban Affairs Committee will hold a full committee hearing on “An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response.” CFPB Director Richard Cordray will be among the witnesses at this hearing. 

On Thursday, The House Energy and Commerce Committee Communications and Technology Subcommittee will hold a hearing on “Modernizing the Telephone Consumer Protection Act.”  CUNA has been very actively encouraging Congress to address the issues presented by the July 2015 FCC Order on TCPA.  On several occasions, we have asked Congress to hold hearings on this matter and modernize the Act.  

This hearing represents an important first step toward such modernization, and CUNA will be active at this hearing.  

In addition to these hearings, we will monitor the following hearings in the House Financial Services Committee:  


  • The House Financial Services Committee will hold a full committee hearing on “The Annual Report of the Financial Stability Oversight Council.”
  • The House Financial Services Committee Capital Markets and Government Sponsored Enterprises Subcommittee will hold a hearing on “Examining the Agenda of Regulators, SROs (self-regulatory organization), and Standards-Setters for Accounting, Auditing, and Municipal Securities.”


  • The House Financial Services Committee Subcommittee on Monetary Policy and Trade will hold a hearing entitled “The Financial Stability Board’s Implications for U.S. Growth and Competitiveness.”

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
OMB Request: Consumer Response Company Response Survey September 30, 2016 CFPB Luke Martone
Payday Loans October 7, 2016 CFPB Leah Dempsey
Single-Family Credit Risk Transfer October 13, 2016 FHFA Andy Price
Amendments to TRID under Reg Z October 18, 2016 CFPB Andy Price
CIP/AML & Beneficial Ownership Requirements for Banks Lacking a Functional Federal Regulator October 24, 2016 FinCEN Luke Martone
Amendments Relating to Disclosure of Records and Information October 24, 2016 CFPB Luke Martone
Request for Information: Payday Loans November 7, 2016 CFPB Leah Dempsey

California Credit Union Act Modernization Signed into Law:

A bill modernizing California’s state credit union act passed its final hurdle when it was signed by the governor last week. The bill is the product of an extensive push by the California Credit Union League, which worked closely with lawmakers to ensure the bill’s passage. [Read More

FOM Parity Granted in South Carolina:

The South Carolina State Board of Financial Institutions (BOFI) expanded the Field of Membership (FOM) for South Carolina state-chartered credit unions. The BOFI updated state regulations to include “members of the household of a member in the credit union’s field of membership.” This change provides parity with federally chartered credit unions. [Read More

Over on the Removing Barriers Blog…

Posted in Advocacy News, CUNA.