Newsroom

May 04, 2017

CU input needed by May 9 on CFPB's alternative data request

NAFCU is requesting member credit union feedback by May 9 on a CFPB review of how to expand access to credit for consumers who lack the credit history needed to obtain credit scores.

Comments can be submitted to NAFCU via the association's Regulatory Alert.

In February, the CFPB announced it was requesting comments on the use of unconventional sources of information, called "alternative data," as a way for consumers to gain access to credit. The bureau is also exploring risks posed by alternative data that is inconsistent, incomplete, incorrect, overgeneralized or biased, along with any privacy and security concerns.

Comments are due to the CFPB by May 19.

The NCUA is meanwhile also seeking industry input by May 9 – for its advanced notice of proposed rulemaking on alternative forms of capital. NAFCU will submit comments.

The ANPR focuses on supplemental capital, which federally-insured credit unions could use to meet NCUA's risk-based net worth requirement. NAFCU has welcomed the ANPR and continues to advocate for regulatory initiatives that would grant credit unions additional flexibility to meet capital standards.