Legislative Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer
9/16/2020

Good Morning!

 

The Association’s fall Hike the Hill returned yesterday, with the virtual opportunity to meet with the Consumer Financial Protection Bureau (CFPB) to kick off our first in a series of two regulatory advocacy meetings taking place this week. (The next virtual meeting will be with National Credit Union Administration (NCUA) Board Member Todd Harper on Friday at 9:00 a.m. CT.)

 

The Bureau rolled out multiple subject matter experts to address our group of nearly 50 credit union professions representing 20 unique Dakotas credit unions. Typically during our fall Hike the Hill event, we are not able to accommodate such a large group – but thanks to the new virtual meeting setting this year, we were able to provide access to more of our members, many who had never attended before!

 

The CFPB’s Outreach Policy Analyst and Business Liaison from the Office of Financial Institutions, Derek Standarowski, facilitated meeting along with your Association’s Chief Compliance Officer, Amy Kleinschmit. The subject matter experts included:

 

Alan Ellison, CFPB Program Manager, Small Business Lending Markets, outlined the Bureau’s Small Business Data Collection proposed rulemaking pursuant to Section 1071 of the Dodd-Frank Act. Section 1071 requires certain financial institutions to collect certain data regarding applications for credit for women-owned, minority-owned, and small businesses, and to report that data to the Bureau on an annual basis. A summary of the Outline can be found here. The CFPB, in collaboration with the SBA, will also convene a  Small Business Review Panel in October 2020 to consult with small entities regarding the potential impact of the proposals under consideration, in advance of issuing a notice of proposed rulemaking.

 

Andrea Edmonds, CFPB Managing Counsel, Regulatory Implementation and Guidance, discussed the CFPB’s new Pilot Advisory Opinion Program which aims to provide outside parties a process to ask question and request clarity in situations where there appears to be ambiguities in a rule. This would be similar and comparable to the NCUA’s Legal Opinion Letter Process. More information on this pilot program can be found here.

 

Laura Udis, CFPB Program Manager, Marketing and Installment Lending, provided an update on the current status of the Small Dollar/Payday Lending Rule which was originally released in 2017. The CFPB has recently released a revised Small Entities Compliance Guide, FAQs, and a policy statement regarding larger loans that exceed the current Regulation Z threshold, which all can be found here.

 

Jeff Swartz, CFPB Senior Advisory Office of Financial Institutions, detailed the Bureau’s recent Request for Information (RFI) regarding the CARD Act. The RFI includes a series of questions for credit card issuers to assess the economic impact of the CARD Act of 2009. In reviewing the economic impact of the CARD Act Rules on small entities, the Bureau is seeking to determine whether the regulations should be continued without change or be amended or rescinded. You can read and respond to the full RFI here.

 

Derek Standarowski closed the meeting with an overview of some rulemakings the CFPB is currently working on including some student-focused education initiatives such as their recently released “Financial Intuition” Podcast. Keep an eye on the Memo and Amy Kleinschmit’s Compliance Updates for more on these future rulemakings.

 

We appreciate the excellent questions and interaction from our Dakotas’ credit union professions joining us online, and we can’t thank those in attendance enough for your participation and support of our first virtual Hike the Hill event. You can find more information about Friday’s meeting with NCUA Board Member Harper on our website here.

 

Have a great week, stay well, and don’t hesitate to contact me with any questions.

 

Photos of speakers from the CFPB on our virtual Hike the Hill call yesterday. 

 

 

 

 

 

 

 

 

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