Newsroom

March 12, 2018

NAFCU committee talks RBC, CFPB, reg relief today

NAFCU's Regulatory Committee will meet today to discuss possible reforms to the NCUA's risk-based capital (RBC) rule, the CFPB's final rule amending its mortgage servicing rule and the latest on the NAFCU-backed Senate regulatory relief bill (S. 2155).

Today's meeting will also include an update on various information requests the CFPB has published to obtain public feedback on how to improve the bureau's functions and outcomes for consumers and the entities it regulates.

The RBC rule is currently set to go into effect Jan. 1, 2019. Over the past three years, NAFCU has consistently opposed this rulemaking and urged the rule be modified or effective date delayed, particularly because of increased regulatory burdens and costs. A recent Economic & CU Monitor survey revealed that three-fifths of credit union respondents did not believe the rule will increase the overall safety of the National Credit Union Share Insurance Fund (NCUSIF) as the NCUA has argued.

NCUA Chairman J. Mark McWatters has indicated his willingness to review and revise the rule. NAFCU has also been active on Capitol Hill to urge lawmakers' support of the Common Sense Credit Union Capital Relief Act of 2017 (H.R. 4464), which would repeal the rule. The bill moved out of committee in December and is awaiting action by the full House.

The Regulatory Committee today will also review the final rule put forth by the CFPB last week aimed to help mortgage servicers communicate with certain borrowers facing bankruptcy. This final rule gives mortgage servicers more leeway in providing statements to consumers entering or exiting bankruptcy, as urged by NAFCU.

Regarding S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, the committee will be updated on the bill's progress and what is expected to happen this week. NAFCU is calling on all credit unions to reach out to their senators ahead of a final vote on S. 2155, which is expected later this week, to urge them to support the bill. NAFCU lobbyists remain engaged on Capitol Hill.

NAFCU's Regulatory Committee will meet again April 10.