WASHINGTON—A joint virtual meeting held by the CFPB's Credit Union Advisory Council (CUAC) and the Community Bank Advisory Council (CBAC) was also monitored by representatives from NAFCU.
The group discussed supervision over nonbank fintechs, implementation of the section 1033 data collection rule, and peer-to-peer (P2P) payment services, according to the trade group.
NAFCU Vice President of Regulatory Affairs Ann Petros and Regulatory Affairs Counsel James Akin attended the virtual meeting. Ahead of the event, Akin sent CUAC members several NAFCU insights and concerns surrounding the topics of discussion.
The Input
The association reported it shared its thought on:
- Nonbank supervision, and “how important it is for the CFPB to ensure a level playing field for credit unions and fintechs.”
- Section 1033 of the Dodd-Frank Act, which aims to provide a formal mechanism for making consumer data portable
- Any interpretative guidance on the expansion of Regulation E liability to further encompass fraudulently induced transfers initiated by a consumer, particularly how it would magnify fraud exposure for credit unions
More Supervisory Activities
During the meeting, the CFPB noted that for the past two years its risk-based prioritization process to determine which entities to supervise has led to a higher number of supervisory activities at nonbanks than at banks, according to NAFCU.
The discussion on nonbank supervision focused on how the Bureau might exercise its risk determination authority to supervise third-party service providers, as well as understanding what risks financial institutions are seeing in the marketplace to inform the CFPB’s supervision program, NAFCU said.
CUAC and CBAC members discussed the ways in which service providers can disadvantage smaller institutions due to a lack of competition, stating it would be helpful for the Bureau to “ensure transparency UGENE, Ore. – Assistant managers from eight Oregon Community Credit Union branches volunteered at Eugene’s Greenhill Humane Society to service its Animals in Disasters trailer, which had just returned from providing aid to animals displaced by the Cedar Creek Fire. ” from vendors before signing up for a service.
Set of Proposals Outlined
The CFPB also outlined its set of proposals for implementing section 1033 during the meeting. CUAC and CBAC members stated that a uniform standard for the apportionment of liability was the biggest concern surrounding section 1033, as well as clarification over the ownership of data and standards on how long data should be stored.
In addition, CFPB Director Rohit Chopra joined the meeting to discuss increases in P2P fraud.
In response to Chopra’s remarks, meeting participants said that while Reg E has evolved with rapidly changing technologies, the bulk of fraud mitigation responsibilities has taken a toll on financial institutions. Chopra reiterated the Bureau’s efforts to work with P2P apps to alleviate fraud issues, NAFCU said.
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