WASHINGTON—A new spring rulemaking agenda released by the CFPB could mean additional regulatory burden for CUs, CUNA cautions.
CUNA reminded that it has advocated that certain rulemakings should be narrowly tailored to focus on less-regulated participants in the financial services marketplace and those who caused the financial crisis, and will continue to do so as they evolve and move through the rulemaking process.
CUNA highlighted rulemaking of interest to CUs from the CFPB’s new agenda:
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Pre-rule activity on debt collection. The CFPB is working on proposed rules to regulate debt collection process. CUNA said it recently met with the CFPB to raise credit union concerns about a potential rulemaking.
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Pre-rule activity on overdraft services. CUNA said it has highlighted that overdraft protection can be a valuable and sought-after service for many credit union members. Pre-rule activity is projected for August.
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Upcoming proposed rule on short-term, small-dollar loans. The CFPB will likely issue the proposed rule in conjunction with a June 2 field hearing, CUNA stated. CUNA said it continues to advocate that this rule should have minimal impact on credit union consumer-friendly, small-dollar loans.
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Proposed rule on arbitration. The proposal would be a defacto ban on pre-dispute arbitration and would require financial institutions to insert language into their arbitration agreements reflecting this limitation. CUNA said it believes this is inappropriate for credit unions. The proposal was issued earlier this month;
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Final rule on prepaid accounts. The rule would cover prepaid financial products, such as reloadable cards. CUNA said it told the Bureau the final rule should minimize costs and additional burdens to credit unions. The rule is expected in July.
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Final rule on mortgage servicing. The Bureau proposed a rule that addresses enhanced loss mitigation requirements and compliance with certain rules involving successors-in-interest. In its comment letter. CUNA said it suggested ways the CFPB can provide additional regulatory relief for credit unions in the rule. The final rule is expected in July.
- Upcoming proposed rule that will amend the KBYO/TRID rule to correct issues with the current rule that went effective October 3, 2015. CUNA said it has pushed for these amendments and has made several suggestions on items that should be addressed. CUNA said it anticipates this rule to be issued on June 13
In addition, the agenda contains mentions of potential clarifications to the Bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure rule, CUNA reported. CUNA said it has provided the CFPB with a number of clarifications and requests for further information that it hopes to see.