CUNA Advocacy Update – Week of February 13, 2017

GAC Right Around the Corner: I am so excited to see everyone in Washington in two weeks. Word to the wise: expect the unexpected. That’s certainly how we’ve been approaching Washington these days. We’ve put together briefing documents that we hope will help you navigate meetings with lawmakers and staff, and we’ve been working closely with League partners who are setting up meetings with regulators.

Our message for Washington is that the current regulatory structure is rigged in favor of the large banks and nonbank providers who can afford to comply with all of the rules coming out of Washington. We need common sense regulations that focus on Wall Street and get out of the way of Main Street. As reasonable as this message may be, understand that it puts us squarely in the middle of lawmakers on both sides of the political spectrum: Democrats who generally want no changes to the CFPB (and thus continued increase in credit unions’ regulatory burden) and Republicans who seek changes to the CFPB, some which could possibly put important consumer protections (from the largest banks and nonbank providers) in jeopardy. We believe there is a lot of middle ground here for common-sense reforms that reduce credit unions’ regulatory burden while at the same time ensuring abusers of consumers aren’t able to prey on them, and we look forward to having 5,000 advocates here to help deliver the message!

In Congress: Congress is back in session this week before taking a week off for the President’s Day recess. Nominations and resolutions of disapproval fill the agenda. The House Financial Services Committee and the Senate Banking Committee will hold the semi-annual Humphrey-Hawkins hearings with the Chairman of the Federal Reserve Board of Governors, Janet Yellen. [Read More]

CUNA Joins Trade Groups on Credit Scoring Model Letter: CUNA joined others in the industry sending a letter to Federal Housing Finance Agency (FHFA) Director Mel Watt regarding ongoing discussions about Fannie Mae and Freddie Mac adopting updated or alternative credit scoring models for purposes of underwriting conforming mortgage loans. While it is vital that credit scoring methods accurately reflect the credit risk of a borrower, potential costs associated with implementation of new standards should be considered before making any changes. The letter asks the FHFA to offer “additional consultation with industry on potential options and the need for a longer implementation period,” and for industry to have the opportunity to review data about the various credit scoring models under consideration to determine the impact they could have on lending and various institutions. Finally, the letter urges a timeframe of at least 24 months for implementation of any changes, to allow for a smooth transition to the new system. [Read More]

In the States: This week, 45 states will be in session and payments are a hot topic as Alabama considers a data breach notification bill, an interchange measure was introduced in Nebraska, chip and PIN legislation is under review in New York, and an exception to Oklahoma’s prohibition of surcharges is pending. Also, Leagues in Pennsylvania and Tennessee are closely tracking Property Assessed Clean Energy (PACE) legislation.

Pending Regulatory Comment Calls: CUNA plans 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.

 

For more information regarding these proposals, please follow the links below:

Issue Comment Period Deadline Agency CUNA Staff Contact
Consumer Access of Financial Records February 17, 2017 CFPB Luke Martone
Alternative Capital May 9, 2017 NCUA Andy Price
CFPB Seeking Credit Union, Consumer Advisory Council Members: The CFPB is seeking applicants for the Credit Union Advisory Council (CUAC) and the Consumer Advisory Board (CAB); completed application packets must be submitted by March 1, 2017. The CAB has seven open seats and the CUAC has six open seats. [Read More]

On the Removing Barriers Blog:

Good Reads:

GAC Give-Back Project: At the GAC, CUNA and its system partners are working hard to make the first CUNA Governmental Affairs Conference’s giveback event a huge success. Attendees and CUNA employees are asked to bring items for a donation drive in support of Bright Beginnings, a nationally accredited child and family development center that offers a bright start for homeless infants, toddlers, preschoolers and their families in Washington, DC. Among the items needed:

  • Diapers (sizes 4, 5 & 6)
  • Baby Wipes
  • Socks (sizes 2T-5T/Youth)
  • Hats/Mittens (Sizes Infant/Toddler/Youth)
  • Books (for children up to 6)

Items can be dropped off during GAC at the Washington Convention Center Exhibit Hall. Attendees unable to bring an item can also make a donation to Bright Beginnings on its website on behalf of America’s Credit Unions.

Posted in Advocacy News, CUNA.