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5 things to know this week
NAFCU's widely read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources.
House returns to vote on budget reconciliation package
After the Senate passed the Democrat budget reconciliation package in a 51-50 vote last week, the House is scheduled to return from its August recess today to vote on the package. While the package includes funds for increased IRS enforcement, it does not include a NAFCU-opposed provision that would have required new account information reporting by financial institutions.
FHFA announces mortgage servicer updates
The Federal Housing Finance Agency (FHFA) on Wednesday announced that starting March 1, 2023, mortgage servicers will be required to obtain and maintain fair lending data on their loans and transfer this data, which includes the borrowers’ age, race, ethnicity, gender, and preferred language, with servicing. Of note, in May, the FHFA announced that on March 1, 2023, lenders will also be required to use supplemental consumer information to collect language preference and housing counseling information.
CFPB takes action against fintech for faulty algorithm
The CFPB announced it would take action against the fintech, Hello Digit, LLC., for using a faulty algorithm that caused unnecessary overdrafts and overdraft penalties for customers. The CFPB states that the company falsely guaranteed its consumers no overdraft fees with its product and pocketed the money as interest instead. The CFPB’s order requires Hello Digit to pay redress to its harmed customers and fined the company $2.7 million for its actions.
“Hello Digit positioned itself as a savings tool for consumers having trouble saving on their own. But instead, consumers ended up paying unnecessary overdraft fees,” stated CFPB Director Rohit Chopra. “Companies have long been held to account when they engage in faulty advertising, and regulators must do the same when it comes to faulty algorithms.”
NCUA names Amber Gravius as Director of the Office of Business Innovation, Chief Data Officer
On Tuesday, the NCUA named Amber Gravius as the Director of the Office of Business Innovation and Chief Data Officer. Prior to her new role, Gravius served as Acting Business Innovation Director and Supervisory Special Assistant for Business Innovation representing stakeholders in the development of NCUA’s new Modern Examination and Risk Identification Tool.
“I am humbled and honored to be selected to lead the NCUA’s Business Innovation team,” stated Gravius. “I look forward to working with stakeholders to deliver improved business processes with secure, innovative, and reliable technology solutions and data to support the NCUA mission.”
NCUA hosts BSA webinar for small CUs
The NCUA announced it will hold a webinar to discuss Bank Secrecy Act (BSA) trends and challenges, as well as resources and updates on BSA compliance. The webinar, happening August 24 at 2:00 p.m. EST, will cover several topics including filing trends for suspicious activity reports (SARs), BSA violations and risk mitigations for small credit unions, as well as updates on the Anti-Money Laundering Act.