Posted by Anthony Demangone
While I know how many of you prefer that the title of the blog should reference the subject matter, that probably wouldn't work so well today. I plan to hit a bunch of topics, so the title would have resembled the name of a certain village in Wales.
Interchange. Representative Barney Frank (D-Mass.) now supports passing legislation (C.U Times) to delay implementation of debit interchange restrictions.
1099. Remember that pesky provision in the health care reform bill that tweaked the 1099-MISC? Well, the Senate passed HR 4, which would repeal the controversial change. The legislation now goes to President Obama for his signature.
CFPB. NAFCU was pleased to take part in a hearing yesterday on how the CFPB will affect credit unions. Lynette Smith, CEO of Washington Gas Light FCU, testified at the hearing on our behalf.
“We believe that if a CFPB is to exist, its primary focus should be on regulating the unregulated in the financial services arena, and not adding new regulatory burdens to those entities that already fall under a functional regulator,” according to Smith’s written testimony prepared for today’s hearing. The authority to regulate all credit unions, she states, should be returned to NCUA.
Stay lifted. The short-lived stay on the Regulation Z mortgage loan originator compensation rule has been lifted. (National Mortgage Professional.com) It was a long-shot at best. The rule is now effective. Carry on...
Mortgage servicing. This post from the Bank Lawyer's Blog notes now some of the nation's largest servicers are entering into consent agreements with their primary regulators. The agreements reportedly demand better internal controls over the servicing areas, including the foreclosure process and communications with borrowers who are in default. One thing caught my eye - the agreements reportedly demand board involvement in the servicing oversight area. This is just another example of how regulators are placing a greater focus on boards and corporate governance. We'll see if these orders find their way into regulation or guidance documents. If I were a betting man, I expect to see some sort of servicing rule or guidance document in the next two years that applies to credit unions. But I'm not a betting man. In Vegas, I once placed a $20 wager that the Nationals would win the World Series.
Speaking of servicing. Is the CFPB interested in these servicing agreements/negotiations/discussions? Yes. Very much so. (ABA Dodd-Frank Tracker)This is one of the reasons I expect some formal rule or guidance document that addresses servicing.
Interchange lawsuit. The lawsuit that attempted to invalidate the Fed's debit interchange rulemaking process? It failed. But much like my $20 wager on the Nationals, I didn't expect all that much success.
FFIEC. NCUA is now chairing the FFIEC. This is a great reminder of an important fact: When you see an FFIEC guidance document, such as an IT Booklet for the BSA Manual, remember that NCUA is part of the FFIEC. Treat that guidance document as if it were created by NCUA itself.