May 13, 2019

This week: NAFCU monitoring financial regulators, payday hearings


Ahead of a hearing Thursday where lawmakers are set to discuss the CFPB's proposed repeal of the payday lending rule, NAFCU and member credit unions will meet today with the bureau and NCUA to discuss the payday lending rule and credit unions' payday alternative loans (PALs) programs.

The House Oversight and Reform subcommittee hearing Thursday will examine the CFPB's role in empowering predatory lenders and the proposed repeal of its payday lending rule. While NAFCU believes regulators must crack down on bad actors, the association has expressed support for the payday rule delay and continues to urge the CFPB to expand its safe harbor for all future iterations of PALs. The association's advocacy led the bureau to take into account credit unions' concerns in the final rule and create a safe harbor for NCUA's PALs.

Also happening this week, the Senate Banking Committee on Wednesday will hear from Comptroller of the Currency Joseph M. Otting, NCUA Chairman Rodney Hood, FDIC Chairman Jelena McWilliams, and Vice Chair for Supervision, Board of Governors of the Federal Reserve System Randal Quarles to discuss oversight of financial regulators. The same panel goes before the House Financial Services Committee Thursday.

NAFCU will also monitor a Senate Committee on Small Business and Entrepreneurship hearing on the reauthorization of the Small Business Administration's (SBA) innovation programs set to begin at 2:30 p.m. Eastern Wednesday. The association works closely with the SBA to increase credit unions' participation in SBA lending programs in order to better serve their communities; the association met with the agency in March to discuss these efforts.

Last week, House Financial Services Chairwoman Maxine Waters, D-Calif., and Ranking Member Patrick McHenry, R-N.C., announced legislation that would extend the National Flood Insurance Program through September 30. Discussions are expected to continue in the House as the program is currently set to expire at the end of the month. A number of NAFCU-sought reforms for the program were discussed during a House Financial Services Committee hearing on its reauthorization in March.

Also happening this week:

  • NAFCU is offering a webinar tomorrow focused on website and social media compliance violations. Register here.
  • Tomorrow, NAFCU's Regulatory Committee will meet to discuss issues affecting credit unions.
  • Tomorrow, the Senate Finance Committee will hold a hearing on challenges in the retirement system.
  • Wednesday, a Senate Appropriations subcommittee will examine the Treasury Department's proposed budget estimates for fiscal year 2020.
  • Thursday, NAFCU will meet at the Treasury Department to discuss the Telephone Consumer Protection Act (TCPA) and efforts to further clarify the definition of "autodialer" to ensure legitimate businesses such as credit unions can contact consumers without fear of breaking the law.