|CHOICE 2.0 Awaiting Vote on House Floor
The House is expected to vote on final passage of CHOICE 2.0 when Congress returns to Washington next week. Prior to recessing for the Memorial Day holiday, House Financial Services Chairman Jeb Hensarling (R-TX) announced the language repealing the Durbin Amendment would be removed from the CHOICE Act. Unfortunately, the CHOICE Act did not represent the right opportunity for repealing Durbin’s price controls and routing requirements. We continue to believe it is important for Congress to consider whether government-imposed price controls on the payment system – or any transaction, including retail transactions – are appropriate. We look forward to the House considering the bill and to future Senate consideration of meaningful regulatory relief legislation.
NCUA Tells the CFPB to Exempt Credit Unions from its Rules
In a letter last week, NCUA Acting Chairman McWatters highlighted rules and policymakings the CFPB should reconsider to account for the different size and structure of credit unions. It specifically notes that rules can be particularly burdensome to smaller credit unions, who have an average of eight employees – specifically remarking that it can be a struggle to stay abreast of complex and evolving compliance requirements without the retention of often cost prohibitive counsel, accountants, financial advisors, and other professionals. The letter addresses the CFPB’s small dollar loan proposed rule, HMDA, its use of UDAAP, and the need for the CFPB to more fully use its exemption authority. – read more here.
CUNA Sends Letter to CFPB on Technical Changes to HMDA
CUNA sent a letter to the CFPB in regards to the Proposed Rule on Technical Corrections and Clarifying Amendments to the Home Mortgage Disclosure (Regulation C) October 2015 Final Rule. The proposed rule is intended to provide clarifications, technical corrections, or minor changes. While CUNA supports several of the corrections, we believe the CFPB should go much further and note there are issues that should also be addressed before the proposed rule is finalized. – read more here.
CUNA and Trades Send Letter to CFPB
CUNA joined a number of trade associations in sending a letter to the CFPB in order to comment on the current timeframe of the “Request for Information Regarding the Small Business Lending Market” (RFI). The RFI is the first step in the rulemaking process, but the CFPB has imposed a short comment deadline of July 14, 2017. CUNA and the other trade associations urged the CFPB to extend the comment period 60 days past the current deadline to September 12, 2017, to allow more time to provide substantive feedback. – read more here.
CUNA Attends NCUA’s May Board Meeting
CUNA attended the NCUA’s monthly board meeting. During the public session, the NCUA received the Corporate Stabilization Fund Quarterly Report and approved three Proposed Rules on – Appeals Procedures, the Supervisory Review Committee, and Voluntary Mergers of Federal Credit Unions. The closed portion of the meeting contained three Supervisory Actions. – read more here.
CUNA Attends PHH v. CFPB Oral Arguments
Las week, oral arguments took place in the U.S. Court of Appeals for the District of Columbia Circuit in the PHH Corp. v. CFPB case. At issue, among other questions, was the constitutionality of the CFPB with its independent director appointed for a five-year term and only removable by the President for cause. The original three-judge panel opinion overturned the CFPB’s enforcement action against PHH Corp. for violations of RESPA and removed the “for cause” requirement declaring the structure unconstitutional. Last week’s en banc review by the full panel of judges included the three who previously decided the original ruling. The rehearing en banc is usually undertaken only for important cases coming before the court. – read more here.
CUNA Attends the Treasury’s Financial Literacy and Education Commission Meeting
CUNA and the National Credit Union Foundation attended the Treasury’s Financial Literacy and Education Commission’s public meeting. The Commission was established in 2003 under the Fair and Accurate Credit Transactions Act and is comprised of 19 federal agencies including the NCUA. The panelists discussed a number of issues surrounding financial literacy, including the Program for International Student Assessment and state mandated financial literacy education. – read more here.
President’s FY2018 Budget Released: Fight to Fund CDFI Fund Resumes
The Office of Management and Budget (OMB) sent the Administration’s proposed fiscal year 2018 Budget to Congress. Similar to the President’s FY 2017 budget, the Community Development Financial Institutions Fund (CDFIF) was again zeroed out, and unfortunately the NCUA’s Community Development Revolving Loan Fund (CDRFL) was also zeroed out. These cuts in FY 18 would amount to $248 million and $2 million, respectively. Both funds are relatively small in a $4.1 trillion proposed budget that includes $57.3 billion in cuts to various domestic discretionary spending programs.
Pending Regulatory Comments 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 for each proposal with your feedback.
For more information regarding these proposals, please follow the links below: