Oct. 2, 2015
TRID takes effect – and hold harmless? Congress could act
The CFPB rule that covers mortgage disclosures finally takes effect Saturday – which is an extension of the original effective date of Aug. 1 – but it is also becoming increasingly apparent that a “hold harmless” period will be instituted by Congress, or CFPB, at least through January. In comments to the CFPB this summer, NASCUS urged the agency to adopt a “hold harmless period” (that is, a period in which a credit union would be protected from legal recourse), which would recognize “the magnitude of the operational changes that will accompany this rule, and give financial institutions a good-faith opportunity to manage their risk without disrupting their service to members.” On Wednesday, House Majority Leader Kevin McCarthy (R-Calif.) said the House would vote next week to delay implementation of the rule (officially known as the CFPB’s “Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID)” rule). The vote next week will be on H.R. 3192 (the “Homebuyers Assistance Act,” sponsored by Reps. Reps. French Hill, R-Ark., and Brad Sherman, D-Calif), which would bar until Feb. 1 any enforcement action taken under the TRID rule. Earlier this week, CFPB Director Richard Cordray told a House committee that the agency would make an announcement regarding a “hold harmless” period before Saturday. He indicated the period would be more or less than six months long, and that his agency and other regulators would be diagnostic rather than punitive in their oversight during that time.
Bills affecting CFPB, RBC2 head to House floor
Two bills that would change the governance of the CFPB, and legislation that would order further study of NCUA’s latest iteration of its proposed risk-based capital rule (RBC2), were sent this week to the House floor by the Financial Services Committee. Regarding the CFPB, the committee approved for House floor consideration H.R. 1266, which would replace the CFPB director post with a bipartisan commission; and H.R. 957, which would transfer authority to appoint a CFPB inspector general from the Federal Reserve to the president. Meanwhile, under H.R. 2769, NCUA would be required to review the proposed RBC2 rule and report to Congress on the agency’s authority to issue a two-tier, risk-based capital rule. The agency would also be required to report on the impact the rule would have on credit unions and their members. (In comments to the agency last spring, NASCUS agreed with NCUA’s proposed, delayed effective date of the final rule until Jan. 1, 2019. “The extended timeframe will allow credit unions to adjust their balance sheets and strategic plans to achieve a well-capitalized standard under the rule without disrupting member products and services,” NASCUS wrote.). All three of these bills are supported by the credit union trade groups.
Mark your calendar: Oct. 15 ‘fair lending’ webinar
Fair lending law compliance is the subject of an Oct. 15 webinar sponsored by the Federal Reserve System, featuring participation by NCUA. The 90-minute session (which starts at 2 p.m. ET), “2015 Interagency Fair Lending Hot Topics,” is expected to address mortgage lending developments, using data to evaluate fair lending risk, compliance management, pricing, maternity leave discrimination, post-origination risks, and auto lending settlements, among other things. The webinar is part of a series of consumer compliance events hosted by the Federal Reserve System and produced in conjunction with the quarterly newsletter Consumer Compliance Outlook. There is no charge for the event, but advance registration is requested. Additionally, participants may submit questions in advance to be answered during the event.
If it’s October, it must be Cyber Security Awareness Month
It’s Cyber Security Awareness Month now, and the Department of Homeland Security (DHS), in coordination with the National Cyber Security Alliance (NCSA), has developed numerous materials to help promote participation. Among the tools DHS is providing are a planning guide (includes template articles, social media posts, and a list of daily ideas); Stop.Think.Connect. logos to include in materials and websites; weekly themes to provide more information on the cyber-related topics for the month; and the “#CyberAware” hashtag for the month, to promote online conversations. Putting these materials to use is a terrific opportunity for the state credit union system to raise public awareness and to demonstrate our shared commitment that we are committed to the security of consumers' data.
Summit just around the corner; time still to sign up!
The 2015 NASCUS State System Summit is just around the corner – Oct. 21-23 in New Orleans. The agenda includes: More than 20 speakers covering a wide range of regulatory, technological, legislative and legal topics; nine hours of general sessions; seven issues briefings and dialogs; six separate breakout sessions, and much more. Our speaker line-up features top officials from NCUA (including Vice Chairman Rick Metsger), as well as experts in CFPB regulation, cybersecurity, biometrics, new payday lending rules, the economy and much more. Our breakouts include sessions on big data, disparate impact, ending efficiencies through technology, data protection and BSA compliance with vendors. Our Summit is a unique meeting where dialogue and mutual exchange are the focus. Won’t you join us? There’s still time – and still room – for you!
BRIEFLY: Full educational calendar ahead for November
A directors’ college in Texas, an Industry Day in Michigan and our annual Bank Secrecy Act (BSA) Conference are all on our educational program for next month. The Michigan Industry Day will be Nov. 3 in Grand Rapids; the Texas Directors’ College is Nov. 17 in San Antonio – and the BSA Conference (co-sponsored with CUNA) is Nov. 15-18 in Fort Lauderdale. Each of these events is open to all members of NASCUS -- so take advantage!
Patrick Keefe, NASCUS Communications, email@example.com or (703) 528-5974