National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions stopped making campaign contributions after the insurrection at the U.S. Capitol, but will now resume them. CUNA was the 12th largest contributor to the 147 Senators and Representatives who objected to the counting of the electoral votes for Joe Biden, according to the Center for Responsive Politics.
President-elect Biden has chosen Rohit Chopra to lead the Consumer Financial Protection Bureau. Chopra helped Sen. Elizabeth Warren (D-Mass.) organize the bureau, so it appears that the agency will be returning to a stricter regulatory stance.
House Financial Services Chairwoman Maxine Waters (D-Calif.) is urging President-elect Joe Biden to reverse so-called “midnight rulemaking” by outgoing Trump Administration agencies, including the National Credit Union Administration and the Consumer Financial Protection Bureau.
The agenda for the January board meeting of the National Credit Union Administration has been released. On the agenda is a rule on Risk-Based Net Worth, an Advance Notice of Proposed Rulemaking on the simplification of Risk-Based Capital Requirements, a proposed rule on CUSOs, a notice of proposed rulemaking on the CAMELS rating system and the agency’s annual performance plan.
A controversial Consumer Financial Protection Bureau task force on consumer financial law released its final report the day before a hearing about its makeup was to be held in a federal court in Massachusetts. Credit unions will like its recommendation that all credit unions be allowed to serve underserved areas. Consumer groups will object to many of the other recommendations and it is unlikely the Biden Administration will accept them.
Seila Law had challenged the constitutionality of the structure of the Consumer Financial Protection Bureau and won in the Supreme Court. The Supreme Court returned the issue of the legality of the actions against Seila Law back to the appellate court. The CFPB just won that portion of the case in the 9th Circuit Court of Appeals.
Treasury Secretary-designate Janet Yellen met with representatives of Community Development Financial Institutions and Minority Depository Institutions and made a commitment on behalf of the Biden Administration to support the program.
Kyle Hauptman was sworn in Monday as a member of the National Credit Union Administration board.
Hauptman, a Republican, was sworn in by Chairman Rodney Hood; his term ends on August 2, 2025. Hauptman’s taking office will ensure that Republicans will continue to control the majority on the board even after President-elect Joe Biden takes office, and as expected, appoints Democrat Todd Harper as chairman.
Sources speculate that National Credit Union Administration Chairman Rodney Hood is attempting to push through last minute policies before the new administration removes him from his leadership. In two unusual moves, the December board meeting will be over a two-day period and the January board meeting has been moved forward so that it is done before Biden is sworn into office. The December agenda is packed.