CUNA Advocacy Update November 29, 2016
December 2, 2016
November 29, 2016
Injuction Against Overtime Rule Granted: A federal district court in Texas, in the case Nevada v. U.S. Department of Labor, granted an emergency preliminary injunction stopping the Department of Labor (DOL) from enforcing its rule for overtime pay, which was set to go into effect on December 1. The injunction is effective nationwide and will remain in effect pending further order of the court.
Credit unions have expressed concerns that the regulatory burdens associated with this rule, and potential negative unintended consequences even for the employees the rule intends to help, outweigh the good intention of the rule. CUNA wrote to both the DOL and NCUA to seek relief for credit unions who we believe are disproportionately impacted by this rule. We’ve also shared our concerns with the Small Business Administration’s Office of Advocacy. Additionally, we supported legislation and sent letters to Congress seeking reforms to this rule. [Read More]
Consumer Protection Subcommittee in DC for CFPB and NCUA Meetings: As part of CUNA’s coordinated advocacy efforts, this week the Consumer Protection Subcommittee will be coming to DC to meet with regulators at CFPB and NCUA. During this event, Subcommittee members representing credit unions from across the country, will express their concerns regarding increasing regulatory burden and potential ways that credit unions can receive broad and specific exemptions from rules and provisions that should instead be focused on addressing problematic behavior in the marketplace. The Subcommittee and CUNA staff will be discussing issues relating to the MLA requirements; the CFPB’s rulemakings on payday/small dollar loans and debt collection practices; the agencies’ interpretations of its unfair, deceptive and abusive acts and practices authority; the new HMDA requirements; and upcoming regulatory changes regarding overdraft protection services.
CUNA and NAFCU File Amicus Supporting Motion to Dismiss in MBL Case: Last week, CUNA and the NAFCU filed an amicus brief in the U.S. District Court of the Eastern District of Virginia supporting the National Credit Union Administration’s (NCUA) motion to dismiss the lawsuit recently filed by the Independent Community Bankers of America (ICBA) which challenges the agency’s authority to issue the latest member business lending rule. In the brief, we argue that NCUA’s interpretation of the Federal Credit Union Act in the rule is well within the agency’s legal authority and defend NCUA’s definition of “member business loan” (MBL), noting it has not substantively changed since 2003 and by definition can only include loans made to a member of the lending credit union. [Read More]
Pending Regulatory Comment Calls: CUNA intends to comment on the following pending regulatory proposals. For our comment letters 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|
|Chartering and Field of Membership||December 9, 2016||NCUA||Andy Price|
|Indemnification Payments||December 21, 2016||FHFA||Andy Price|
|Loans in Areas Having Special Flood Hazards–Private Flood Insurance||January 6, 2017||Joint||Luke Martone|
Feedback Requested on Flood Insurance Proposal: As we begin to develop our comment letter, we seek your input on an interagency proposal regarding loans in areas having special flood hazards that would implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012.
Specifically, the proposed rule would require lending institutions—including credit unions—to accept policies that meet the statutory definition of “private flood insurance” in the Biggert-Waters Act. The proposal would also permit institutions to accept flood insurance provided by private insurers that does not meet the statutory definition of “private flood insurance” but does meet certain established criteria.
Congress in back: The House and the Senate return to Washington for what is expected to be the last work session before sine die adjournment of the 114th Congress. Check out our analysis of the floor activity and committee hearings here as well as the House Majority Leader’s Weekly Schedule. We’re keeping an eye out for a hearing featuring CFPB Director Richard Cordray in the House Financial Services Committee, which was expected to take place this Wednesday. However, it hasn’t been noticed yet, which means it is unlikely to happen this week.