NAFCU urges further review of credit reporting reforms ahead of markup
Ahead of today's House Financial Services Committee markup, which includes a number of bills related to credit score reporting, NAFCU's Brad Thaler acknowledged that "recent events, including the Equifax data breach, have demonstrated [that] reforms are needed for our nation's consumer credit reporting system. However, such reforms should be carefully considered after seeking input from all parties involved – including consumers, regulators and financial institutions."
The markup, set to begin at 10 a.m. Eastern, includes 15 bills that seek to address issues related to the credit score reporting system, housing, and diversity and accountability.
Thaler, NAFCU's vice president of legislative affairs, offered the association's support of three bills:
- Ensuring Diverse Leadership Act (H.R. 281): "NAFCU is pleased to see the Committee's ongoing efforts to promote diversity and inclusion in financial services," Thaler wrote. The bill, offered by Rep. Joyce Beatty, D-Ohio, would help ensure that Federal Reserve Banks interview candidates reflective of gender and racial or ethnic diversity when appointing Federal Reserve presidents.
- Homebuyer Assistance Act (H.R. 2852): The amendment in the nature of a substitute to this legislation, offered by Reps. Brad Sherman, D-Calif., and Sean Duffy, R-Wis., would improve the process for getting appraisals for Federal Housing Administration-backed mortgages.
- Free Credit Scores for Consumers Act (H.R. 3618): This bill, also offered by Beatty, would provide consumers with free access to credit scores and "should help consumers' understanding of the credit process and their credit standing."
However, Thaler flagged that some of the credit score reporting reforms proposed in other legislation, while well-intended, could have consequences on lenders and consumers and the credit decision process, including:
- Restricting Use of Credit Checks for Employment Decisions Act (H.R. 3614): Thaler asked that lawmakers consider financial regulators' possible expectations for including background checks that may include credit reports during financial institutions' hiring process.
- Clarity in Credit Score Formation Act (H.R. 3629): As "credit unions are already at the forefront in using non-traditional data to help their members obtain credit," Thaler cautioned against increasing the CFPB's involvement in establishing regulations for credit scoring models that could hinder or create new burdens with such efforts.
- Improving Credit Reporting for All Consumers Act (H.R. 3642): While there are positive provisions in the bill, Thaler recommended reconsidering sections that that could put onerous new burdens on community institutions such as credit unions, and potentially open the door to frivolous disputes and other abuses of the system that could overwhelm smaller institutions.
Thaler urged the committee to further examine NAFCU's concerns before advancing any major credit reporting reforms.
NAFCU will attend today's markup and keep credit unions updated on the committee's discussions.
Add to Calendar 2019-06-27 14:00:00 2019-06-27 14:00:00 The New Private Flood Insurance Rule: Compliance Tips and Unanswered Questions The new interagency private flood insurance regulations take effect on July 1, 2019 and will require credit unions and other regulated entities to accept certain types of private flood insurance policies. This webinar will provide you with an overview of the new rule, address the rule’s requirements, and identify unanswered questions that may affect the growth of the private flood insurance market. Key Takeaways: Learn more about the role of private flood insurers Gain insight on the difference between mandatory and discretionary acceptance Analyze the difference between private flood insurance and NFIP policies Understand when a credit union must accept a private flood insurance policy and when it has discretion to accept a private flood policy Register Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until June 27, 2020.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance Staff Risk Staff Credit Union Staff Attorneys Open to all credit unions, regardless of membership or charter type! Education Credits NCCO credit information is below; recommended 1.5 CPE credits. NCRM credit information is below; recommended 1.5 CPE credits. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Learn more about the role of private flood insurers. Gain insight on the difference between mandatory and discretionary acceptance. Analyze the difference between private flood insurance and NFIP policies. Understand when a credit union must accept a private flood insurance policy and when it has discretion to accept a private flood policy. 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: Regulatory Ethics - Technical National Association of Federally-Insured 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 firstname.lastname@example.org America/New_York public
Credits: CPE, NCCO, NCRM,
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