Newsroom
NAFCU flags QM, E-SIGN, more ahead of CFPB testimony
Ahead of CFPB Director Kathy Kraninger's testimony before the Senate Banking Committee today, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee to voice credit unions' perspective on CFPB issues impacting the industry, including its qualified mortgage (QM) rule, leadership structure, and more.
Thaler reiterated 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.
“The U.S. Supreme Court highlighted this fact when earlier this year it released a decision in Seila Law v. the Consumer Financial Protection Bureau that found the firing of the single director only for ‘just cause’ to be unconstitutional,” Thaler wrote.
In addition, on the CFPB’s ongoing rulemaking to revise the definition of a QM under the ability-to-repay/QM rule in light of the expiration of the government-sponsored enterprise (GSE) patch, Thaler reiterated the association’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.
On the CFPB’s recently issued interim final rule making temporary changes to Regulation X, Thaler called on the CFPB to make an exception to unnecessary and burdensome regulations for disaster-related programs that move delinquent borrowers into current status. This exception, Thaler said, “will allow credit unions to work with their members quickly and without being encumbered by paperwork that the credit union and the GSEs do not require to offer these options.”
Thaler also voiced NAFCU’s call to modernize provisions in the Electronic Signatures in Global and National Commerce (E-SIGN) Act to help credit unions better meet the needs of members, while respecting social distancing requirements and voiced support for the E-SIGN Modernization Act, S. 4159, which aims to streamline how consumers consent to receiving electronic documents.
NAFCU joined with several other trade associations wrote to Senate leadership to highlight how financial services and business have drastically transformed since the outdated E-SIGN Act was enacted 20 years ago, including a significant increase in consumers' internet access and literacy. The group also voiced support for the inclusion of the E-SIGN Modernization Act in the Senate’s Phase 4 coronavirus relief package.
“We have also previously requested that the CFPB adopt a presumptive consent framework to facilitate electronic delivery of disclosures,” wrote Thaler. “We asked the CFPB to do this by amending all of its rules to allow financial institutions to deliver electronic disclosures without having to confirm the consumer’s ability to receive documents electronically when the consumer initiates the transaction using an online service.”
Thaler concluded by voicing support for the CFPB’s current exemptions based on an entity’s asset size, but also stated that the association “strongly believes that the CFPB can do more, such as increasing transaction-based thresholds, or considering exemptions based on an institution's characteristics and activities.”
The hearing will be available via livestream on the committee’s website and is set to begin at 10 a.m. Eastern.
NAFCU will monitor the hearing the hearing today, in addition to Kraninger’s testimony before the House Financial Services Committee tomorrow.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.