November 19, 2013
Tuesday Edition
NCUA looking to add paperwork?

The American Action Forum, a Washington, D.C. think tank, recently wrote about a new request by the NCUA that landed on the desk of the Office of Information and Regulatory Affairs (OIRA). The NCUA submitted an Information Collection Requirement of 43.4 billion hours for new paperwork with the Office of Management and Budget (OMB). This is a massive jump from the current 209,373 hours.

The American Action Forum looked at this two different ways. The first way pointed out was that for this to work it would take 5.2 million years to finish. The second is that it would cost a compliance officer $1.3 trillion in salary to complete or one tenth of the U.S. Gross Domestic Product.

The NCUA submitted paperwork to back up the request. The agency is expecting 6,859 periodic responses on a quarterly basis which translates to 1.58 million hours for each request. As the think tank wrote, "The topline figures are unbelievable, but the lack of oversight and public attention is even more surprising."

This is one think tank's response to the request. CUNA and the League are keeping their eye on this situation and will respond accordingly. Read the full report on the American Action Forum's website, as well as download the NCUA's document backing up the request.

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Washington wire

CFPB Mortgage Rules
CUNA and the League continue to urge Congress to take action to delay the implementation of the Dodd-Frank Act mortgage rules in order to provide credit unions and their vendors more time to come into compliance with the regulations. CUNA recently called on the CFPB and Congress to delay until September 2014 possible sanctions and legal liability under QM and other mortgage rules. Earlier this month, more than 100 members of Congress also urged the CFPB to delay mortgage regulation for one year (until January 2015).

There is a similar effort in the Senate led by Sen.Roger Wicker (R-MS). He has circulated a draft letter and has asked senators to let him know by Wednesday whether they will sign. CUNA encourages all senators to sign this letter.

Privacy Notification Legislation
CUNA and the League continue to press the Senate to consider S. 635, the Eliminate Privacy Notice Confusion Act. It is believed that leadership on both sides of the aisle would like to move the legislation by unanimous consent and that work is underway to address remaining concerns that any senator may have. It is hopeful that the bill will pass the Senate before the end of the year.

Coalition Letter to Budget Conferees on the Use of Guarantee Fees
Last week, CUNA joined a coalition of financial services trade groups to send a letter to the Budget Committee Chairmen in the House and Senate urging them not to support the use of Guarantee Fees (G Fees) as a source of revenue in budget proposals during their budget conference. The letter intimated the importance of G Fees as a credit risk tool for Fannie and Freddie but that raising them for the purpose of revenue would hurt the housing recovery and essentially tax consumers in the housing market. The Senate has previously spoken on this issue, adopting a bipartisan amendment, which CUNA supported, prohibiting the use of G Fees for this purpose.

Click here for the full Legislative Update.

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InfoSight spotlight: Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act provides protection to individuals who are on full-time active military service of the United States.

Under the SCRA, while a service member is on active duty, a credit union may charge no more than six percent simple interest on loan balances incurred prior to active duty status. The SCRA clarifies this requirement by extending that limitation to the service member and his or her spouse jointly. The SCRA also clarifies that any interest in excess of six percent that otherwise would have been incurred (while on active duty) is forgiven. The SCRA also extends protections to co-debtors who may also be obligated on loans with the active duty servicemember.

Visit the Servicemembers Civil Relief Act topic on the Loans and Leasing channel of InfoSight to review:

  • Actions your credit union should take to ensure compliance with the SCRA.
  • What your credit union should do after the Act no longer applies to a member.
  • SCRA FAQs from HUD.

Review this information today to help your credit union remain in compliance.

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Filene Consumer Insights webinar today

Many credit unions today do not know why online shoppers in their markets select the financial institutions, products, and services that they do. This is why Filene is introducing Consumer Insights, a solution designed to provide real-time local market knowledge about what drives consumers’ decisions when searching online for financial services.

To learn more about the Consumer Insights solution, be sure to attend on of the Filene's free webinars either today, Nov. 19, or Thursday, Nov. 21. 

Click here to register.

Got questions? Contact Jason Milesko at 608.661.3750, or Tansley Stearns at 608.661.3753 or  

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In This Issue
Tuesday Edition
NCUA looking to add paperwork?
Washington wire
InfoSight spotlight: Servicemembers Civil Relief Act
Filene Consumer Insights webinar today
LSCU & Affiliates Media

Happy National Philanthropy Day from NCUF
A special message from Gig Hyland, executive director of the National Credit Union Foundation, on National Philanthropy Day 2013.

Part one: NCUA Consumer Protection Update
In part one of this three-part installment,
Office of Consumer Protection Director Gail Laster covers the Remittance Transfer Rule, Escrow Requirements for Higher Priced Mortgages, and High Cost Mortgage Homeownership Counseling Rule.

Upcoming League Events
Nov. 21 1099 Reporting/Vendors/Foreclosures
Nov. 22 5 Definitions of a Qualified Mortgage
Nov. 26 Compliance Updates/Nonresident Accts
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