Washington Credit Union Daily – Reporting on regulations, legislation and political developments affecting credit unions.

Disputing CU Trades, Credit Union CEO Says 36% Rate Won’t Eliminate Short-Term Credit

Financial services companies would continue to make loans—and make money on the deals—if Congress decides to place a 36% interest rate cap on short-term loans, Richard Williams, president/CEO of the Essential Credit Union told the Senate Banking Committee.

SBA to Establish Direct PPP Forgiveness Portal

The Small Business Administration is preparing to launch a streamlined application portal that will allow Paycheck Protection Program borrowers with loans of $150,000 or less to apply for forgiveness through the SBA.

House Panel Approves Bill to Require Regulators to Focus on Charter Simplification

The House Financial Services Committee approved H.R. 4590, which would require federal financial regulators to develop a strategic plan to encourage the chartering of new credit unions and banks.

House Bill Likely to Retain Postal Banking Pilot

A Republican effort to kill a postal banking pilot program contained in the House version of the FY22 Financial Services spending bill failed.

CU, Banking Trade Groups Fighting 36% Loan Interest Rate Cap Legislation

Credit union and banking trade groups are asking Congress to ignore proposals to impose a 36% fee and interest cap on loans made by financial institutions.

CU Trades Again Ask NCUA to Lower Normal Operating Level

Credit trade groups are continuing to press the National Credit Union Administration to lower its Normal Operating Level to 1.30%--a request that so far has been denied.

U.S. PIRG to CFPB: Toughen Payday and Debt Collection Rule, Regulate Overdrafts

Having survived the Trump Administration, the CFPB should reassert its authority and issue tough rules on payday lending, overdraft fees and debt collection, U.S. PIRG, a public interest and consumer group, said in a new report.

CU Groups Resume Contributions to House Members Who Opposed Electoral Vote Counting

The political action committees of CUNA, NAFCU, ABA, and ICBA have all resumed making campaign contributions to House members who objected to the certification of Electoral College votes on Jan. 6.

NCUA Board Agrees to Solicit Comments on Capital Adequacy Changes

The NCUA board agreed to solicit comments on a proposed rule that would amend the agency’s capital adequacy regulation governing credit unions with assets over $500 million, among other decisions at its July meeting.

Banking Regulators—But Not NCUA—Issue Third-Party Servicer Guidance

On July 13, when federal banking regulators issued proposed guidance governing financial institution monitoring of third-party service providers, one agency was notably absent: the NCUA.

House Hearing: No Consensus on How to Help Unbanked

At a House Consumer Protection and Financial Services Subcommittee hearing, members and financial services experts agreed that providing financial services to the unbanked should be a high priority for policymakers. There were various proposals and no agreement about how to do it.

CFPB to Issue Proposed Rule on Credit Data Collection by Sept. 30

The CFPB will issue a Notice of Proposed Rulemaking by the end of September on the collection of race, sex, and ethnicity information from credit applications, according to court documents.

FHFA Eliminates Controversial Refinancing Fee

The FHFA announced that on Aug. 1 it will eliminate the controversial Adverse Market Refinance Fee imposed last December under the Trump Administration.

Senate Dems: Cannabis Banking Must Be Part of Broad Legalization Bill

Key Democratic senators vowed Wednesday to block marijuana banking legislation unless it is enacted as part of a comprehensive federal cannabis legalization measure.

FinCEN to Develop ‘No Action Letter’ Program

The Financial Crimes Enforcement Network intends to develop a program that allows it to issue “no action letters” to financial institutions that request them.

Bank-Credit Union Mergers Ignored in Biden Executive Order

If President Biden’s Executive Order on competition is any indication, banker arguments that credit unions pose an unfair competitive threat may not be gaining traction in the White House.

It’s Summertime: Baseball, Fireworks and the Fight Over Military Banks

If it’s summertime, it’s time for the annual brawl between credit unions and banks over free access to military bases. The Senate Armed Services Committee is scheduled to mark up the annual defense authorization bill this week and the credit union trade groups are staking out their positions.

Biden Signs Resolution Killing OCC ‘Rent-a-Bank’ Rule

The Office of the Comptroller of the Currency’s so-called “rent-a-bank” rule that allowed banks and savings and loans to provide their charter to online lenders with annual interest rates exceeding 100% is dead.

Credit Unions Given Time to Adjust to New FinCEN Priorities

Credit unions will not yet be required to revise their Bank Secrecy Act policies to conform to priorities issued by the Financial Crimes Enforcement Network, NCUA Chairman Todd Harper said. But they might want to start planning.

CFPB Won’t Stop Foreclosures, But Will Require ‘Temporary Safeguards’

The CFPB said it will not impose a moratorium on mortgage foreclosures until the end of the year but will impose “temporary safeguards” to ensure that homeowners with pandemic-related hardships have time to make payments on their homes.

NCUA Board Approves Plan to Keep Current 18% Interest Rate Ceiling

At the June board meeting of the NCUA, the board voted on the interest rate ceiling for credit unions, adopted a final rule on capitalization of interest, and adopted a final rule to ease the impact of the Current Expected Credit Losses standard.

CFPB to Resume Military Lending Act Enforcement

Reversing a Trump Administration policy, the Consumer Financial Protection Bureau announced Wednesday that it will immediately resume enforcement and supervisory activities under the Military Lending Act.

Credit Unions Made $5.6 Billion in Loans During Latest PPP Round

As the PPP ends, the SBA reported that this year 859 credit unions made almost $5.6 billion in loans to businesses to help them weather the coronavirus pandemic.