Kraninger addresses several CU issues at hearing; NAFCU reiterates priorities to House committee
CFPB Director Kathy Kraninger will testify before the House Financial Services Committee (HFSC) today, following yesterday's testimony before the Senate Banking Committee. Ahead of today’s hearing, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee to again voice credit unions' perspective on CFPB issues impacting the industry, including its qualified mortgage (QM) rule, leadership structure, and more.
During her testimony before the Senate Banking Committee, Kraninger noted that the CFPB is taking steps to make changes in the financial system for minorities to have equal opportunities and pointed to the 70 blogs and videos issued by the CFPB to expand outreach to consumers and provide valuable information about their rights in the marketplace.
When questioned by Sen. Bob Menendez, D-N.J., on what the CFPB was doing to ensure that minority homeowners were taking advantage of mortgage forbearance and loan modification options, Kraninger said the CFPB is making sure servicers are held to the requirements brought on by the CARES Act and that the bureau has worked on prepared scripts with servicers to ensure borrowers have clear information about their rights.
On data privacy, Kraninger was questioned about nontraditional financial services providers and how the bureau is aggregating data from financial institution websites after authorization from the customer by Sen. Jerry Moran, R-Kan. Moran also noted that Section 1033 of the Dodd-Frank Act ensures consumers have access to their data, and questioned the bureau’s rulemaking process on data privacy.
Kraninger responded and noted that Section 1033 expressed that consumers should have the ability to authorize access, and that the CFPB has principles that remain true today but are moving forward toward the possibility of a rulemaking on this “challenging area.”
On QM, Sen. Mark Warner, D-Va., asked Kraninger how the bureau will make sure responsible credit is available for low income communities and gig workers, to which she replied that the CFPB is looking at what verification and consideration of debt and income will look like for those types of workers and what standards that stakeholders in the industry can agree on.
In addition, Kraninger noted that the bureau is aiming to get a new feedback mechanism that would allow financial institutions to provide feedback on their exams in place in the fall.
In the letter, sent to Chairwoman Maxine Waters, D-Calif., Ranking Member Patrick McHenry, R-N.C., and committee members ahead of today's hearing, Thaler reiterated NAFCU’s call to discourage the CFPB from pursuing a QM definition that uses the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) as a proxy for underwriting requirements, in light of the expiration of the government-sponsored enterprise (GSE) patch and the CFPB’s subsequent ongoing rulemaking to revise the definition of a QM under the ability-to-repay/QM rule.
Thaler also called for modernizing provisions in the Electronic Signatures in Global and National Commerce (E-SIGN) Act. The NAFCU-backed E-SIGN Modernization Act, S. 4159 aims to streamline how consumers consent to receiving electronic documents and will help credit unions better meet the needs of members, while respecting social distancing requirements.
In addition, Thaler noted NAFCU’s long held position that the CFPB's leadership structure should be reformed to a commission-based model to ensure transparency and accountability and the association’s continued support of legislative efforts to do so.
NAFCU will monitor the hearing, slated to begin at 12:30 p.m. Eastern. The hearing will be available via livestream.
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Add to Calendar 2020-09-21 14:00:00 2020-09-21 14:00:00 Member Business Lending in Relation to COVID Impacting Loans Millions of lives and businesses have been changed by the COVID-19 pandemic. The lasting impacts of COVID-19 – both physically and economically – are still unknown, and the world continues to find ways to adjust in order to meet the difficulties caused by the disease head on. Credit unions have had to respond swiftly and thoughtfully to match the evolving needs of their communities and members, and other affected industries. Eviction moratoriums, payment deferrals, loan modifications and the birth of the Paycheck Protection Program and the terms of loan forgiveness, including the efficacy of these policies to date, are a few of the topics examined in this webinar. Key Takeaways Understand how COVID-19 has dramatically changed the world of commercial lending Examine how financial institutions have responded to the problems created or exacerbated by COVID-19 Review the key aspects of the Paycheck Protection Program under the CARES Act, and other available relief Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until September 21, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Chief Executive Officers (CEOs) Chief Lending Officers (CLOs) Lending, risk, marketing and business development staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand how COVID-19 has dramatically changed the world of commercial lending. Examine how financial institutions have responded to the problems created or exacerbated by COVID-19. Review the key aspects of the Paycheck Protection Program under the CARES Act, and other available relief. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
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