July 20, 2022

NAFCU Reg Committee discusses NCUA annual regulatory review CFPB credit card late fees ANPR, more

NCUANAFCU’s Regulatory Committee met Tuesday and discussed several proposals that are open for comment from federal financial regulators, including the NCUA, CFPB, the Financial Crimes Enforcement Network (FinCEN), and the Treasury Department.

Attendees discussed the NCUA’s annual regulatory review in which the NCUA reviews one-third of its existing regulations. This year, the NCUA is reviewing Parts 700 – 710 of its regulations, including the agency’s rules on bylaws, as well as Part 701.36 on federal credit union (FCU) occupancy, planning, and disposal of acquired and abandoned premises and incidental powers. Of note, the $1.5 trillion omnibus spending package, passed earlier this year, contains the NAFCU-backed Credit Union Governance Modernization (CUGMA), which now awaits NCUA action.

NAFCU  recently called on the NCUA to amend its part 701.36 to reduce the requirement that credit unions occupy and use at least 50 percent of their premise, and instead require a minimum of 25 percent occupancy and use. Comments on the annual regulatory review are due to the NCUA on August 16.

The Committee also examined several updates on CFPB’s open proposals, including:

  • the CFPB’s 10-day extension to the comment period deadline for its advance notice of proposed rulemaking (ANPR) on questions related to credit card late fees. NAFCU requested an extension to the bureau’s comment period deadline, noting the unexpected nature of the ANPR and its exclusion from the CFPB’s spring 2022 regulatory agenda. In addition, NAFCU members were able to share comments with the association through a Regulatory Alert; and
  • the CFPB’s request for information on how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates. NAFCU previously sent members a Regulatory Alert on this topic and comments are due to the CFPB tomorrow.

Of note, the Committee discussed several FinCEN proposals, including:

  • an ANPR on creating a No Action Letter program, which would be “a letter indicating [FinCEN’s] intention not to take or recommend enforcement action against the submitting party for the specific conduct presented in the submitting party’s request.” NAFCU sent members a Regulatory Alert breaking down the ANPR and soliciting feedback from members; comments are due to NAFCU this Friday and can be submitted through the alert; and
  • a request for comment (RFC) on renewing section 1010.520 of the Code of Federal Regulations, related to 314(a) information sharing under the USA PATRIOT Act.

The Committee also discussed NAFCU’s Regulatory Alert on the Treasury Department’s RFC on the responsible development of digital assets. The RFC seeks public feedback on the implications of the adoption of digital assets, such as a central bank digital currency (CBDC), and the changes that could be expected in the financial market and payment system.

NAFCU recently responded to a similar RFC from the Commerce Department, reiterating that the expected costs of a CBDC would outweigh the benefits and namely, that superior alternatives exist for accomplishing the same objectives. NAFCU first communicated these concerns to the Federal Reserve in a letter on the same topic.

In addition, the Committee discussed appraisals and automated valuation models (AVMs). The NCUA and other regulators included a proposal on AVMs in their spring 2022 rulemaking agenda.

There is no meeting scheduled for August. The Regulatory Committee will next meet during NAFCU’s 2022 Congressional Caucus on September 13.