Dec. 3, 2012 – Credit unions aren’t alone in viewing the CFPB’s rule on international remittances as a problem: The Federal Home Loan Bank of New York is ending this “non-core” service at year-end due to the uncertainties posed by the rule and underlying statute.
The bank says it’s getting out of this service now that the Dodd-Frank Act and CFPB regulation requires the application of consumer protection rules beginning Feb. 7 (though the CFPB has proposed a delay).
“We pride ourselves in being an advances bank for our members,” said FHLBNY President and CEO Alfred DelliBovi. “International third-party wire transfers are a non-core service we have offered for member lenders in our district. With the looming regulatory hurdles being placed on this service, we have concluded that it is prudent for the Bank to no longer offer this service at year-end.”
NAFCU has raised concerns with the CFPB over this looming new rule, which would impose new disclosures and other requirements on credit unions that facilitate more than 100 remittances in a year.
The CFPB recently announced it will propose rule revisions that delay the effective date of any final remittance rule to 90 days after publication of a revised rule, a move NAFCU welcomes. It also offers a small handful of revisions to the regulation.
NAFCU will provide input on the CFPB’s proposed rule.