|On Wednesday, Rick Nichols, President & CEO of River Region Credit Union will testify before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit for their hearing entitled, “Examining Legislative Proposals to Provide Targeted Regulatory Relief to Community Financial Institutions.” The hearing will be broadcast live on www.financialservices.house.gov
Read more about what is happening this week in Washington here!
Instead of our usual weekly update, this week’s Advocacy Update highlights a few of the successes we have had so far in 2017!
The CHOICE Act – Regulatory Relief Legislation Passed the House
In June, the House of Representatives passed the Financial CHOICE Act. The road to final passage had many steps – the legislation was released, a hearing and a minority hearing were held, a two and a half day markup was completed, and finally the vote on the House Floor. As mentioned in the past, this legislation is not perfect, but is the first step toward meaningful regulatory relief for credit unions and community financial institutions. [Read more here]
NCUA Chairman Wrote to CFPB Urging Regulatory Relief
In May, a letter was sent to CFPB Director Cordray from NCUA Chairman McWatters. In the letter, McWatters highlighted rules and policymaking the CFPB should reconsider to account for the different size and structure of credit unions. It specifically noted 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. [Read more here]
ALSO – just last week, Chairman McWatters again wrote to Director Cordray on behalf of exempting credit unions – [Read about it here]
The CDFI Fund Was Fully Funded for FY2017
CUNA, its state partners, individual credit unions, and concerned credit union members saw their heavy lobbying and grassroots efforts pay off when Congress proposed and passed a compromise omnibus spending bill for fiscal year 2017 in May. Congress fully funded the Community Development Financial Institutions (CDFI) Fund at $248 million. This funding amount was significantly higher than the $233.5 million that was spent in FY 2016, but also more noteworthy given the fact that the Administration requested that the Fund be eliminated in the bill. [Read more here]
Unfortunately, the fight to fully fund the CDFI for FY 2018 continues. [Read more about our current efforts!]
The CFPB Delayed Prepaid Rule to 2018
The CFPB announced a six-month delay of the effective date of the prepaid accounts rule. Originally scheduled to take effect October 1 of 2017, the delay pushes the effective date to April 1, 2018. While CUNA filed a comment letter with the CFPB urging for a one-year delay, we appreciated the six-month delay, which allows additional time for credit unions and vendors to make changes necessary under the final rule. [Read more here]
State Governmental Affairs Has Been Active in 2017!
- Interchange Bill was defeated in Nebraska.
- New Mexico legislations passed Data Breach Notification legislation.
- Surcharge bills were defeated in Maine and Montana.
- PACE Loan Legislation defeated in Arkansas, Montana, and Oklahoma!
- Legislation strengthening credit unions in: Alabama, Florida, Georgia, Iowa, Maine, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oregon, Rhode Island, Tennessee, and Washington!
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: