STATE GOVERNMENT RELATIONS
IBA Regional Meeting Dates
It’s not too late to register for this summer’s IBA regional meetings! Make plans to join your banking peers and local lawmakers for lunch and conversation at one of five remaining regional meetings. The IBA is delighted to host this important grassroots advocacy series once again in the cities of Bloomington (July 31), Fort Wayne (July 9), Indianapolis (July 10), Merrillville (July 18) and New Albany (July 29). For more information click here or contact Michelle Long at 317-333-7148.
FEDERAL GOVERNMENT RELATIONS
CFPB Extends Comment Period on HMDA Thresholds
The Consumer Financial Protection Bureau has indicated it is extending the comment period on its advance notice of proposed rulemaking on the Home Mortgage Disclosure Act, including provisions on coverage thresholds.
The CFPB will extend the comment period on the additional HMDA data points required under its October 2015 rule from July 8 to Oct. 15. The bureau also will issue a Federal Register notice to reopen the threshold comment period, which closed June 12.
As part of its proposal, the CFPB is proposing to raise the coverage thresholds for collecting and reporting HMDA data. It would raise the coverage threshold for closed-end mortgage loans from 25 to either 50 or 100 loans. For open-end lines of credit, the proposal would extend for another two years the current temporary coverage threshold of 500 open-end lines of credit. Once that temporary extension expires, it would permanently set the threshold at 200.
Defense Bill Would Establish Military-Banking Parity
The Senate has passed a defense spending bill that included a provision promoting parity between banks and credit unions on military bases.
The $750 billion appropriations bill would require the Department of Defense to treat banks and credit unions operating on a military installation within the continental United States equally with respect to the financial terms of leases, logistical support, services, and utilities. To receive equal treatment, both must serve on-base and have a customer base that is at least 95% composed of military personnel, federal employees, and their families.
Banks on military bases are required to pay rent for the use of facilities, though credit unions may operate rent-free. The House version of the National Defense Authorization Act does not include similar language. Including this provision in the House version of the bill remains a priority.
FHFA Publishes Replacement Index for Mortgage Rates
The Federal Housing Finance Agency has published new data that banks may use in place of FHFA’s Monthly Interest Rate Survey, which many lenders had used to benchmark interest rates on various mortgage products. FHFA ceased publication of that index in May.
The new data is derived from Freddie Mac’s 30-year FRM Primary Mortgage Market Survey, with adjustments made by FHFA. The agency will continue publishing this replacement index, called “PMMS+,” for the foreseeable future on the final Thursday of each month. The agency is expected to articulate its adjustment methodology in a forthcoming notice in the Federal Register.
CFPB Updates Compliance Guide for Payday Rule
The Consumer Financial Protection Bureau last week updated the small entity compliance guide for its 2017 final rule governing short-term, small-dollar loans. The updated guide reflects the recent finalization of a delay in the compliance date for the mandatory underwriting provisions in the 2017 rule. The bureau has proposed to rescind those underwriting provisions, while leaving in place the 2017 rule’s payment provisions.
Although the bureau has not delayed the compliance date for the payment provisions, those provisions are also currently stayed as a result of a federal district judge’s order in litigation brought by two payday lender trade associations. Nonetheless, bankers are encouraged to come into compliance with the payment provisions in the 2017 rule by the Aug. 19 compliance date stated in that rule.
McWilliams: Resolution Regime Must Consider Cyber
The Federal Deposit Insurance Corp. is working to update its regime of resolving failing financial institutions to account for resolutions driven by cyber incidents, FDIC Chairman Jelena McWilliams indicated in a speech on Monday. Speaking in London, McWilliams said a cyber-based resolution would present unique challenges due to the potential abruptness of a disruption, uncertainties on the severity of impact, and the reliability and accessibility of information required to conduct a resolution.