CUNA advocacy priorities reflected in BCFP rulemaking agenda

October 18, 2018

The Bureau of Consumer Financial Protection issued its Fall 2018 rulemaking agenda this week, with several items reflecting CUNA’s advocacy with the bureau. The agenda is a snapshot of the bureau’s regulatory priorities over the coming months into 2019.

Timelines on the agenda may not reflect the exact timing of regulatory actions, which depends on different factors at each agency.

Items of interest for credit unions include:

  • S. 2155 Implementation: The bureau expects to issue “notice and comment” rulemakings on provisions within the BCFP’s jurisdiction to provide clarity and assist compliance. A proposed rule applying consumer protections to PACE loans, as required by S. 2155, is currently in development. CUNA has urged the bureau to move quickly in implementing the changes in S. 2155;
  • Home Mortgage Disclosure Act (HMDA): The bureau intends to continue necessary actions to implement HMDA relief and on the privacy balancing test and disclosure of data. A proposed rule is expected in Spring 2019 to consider substantive changes to HMDA, which may include reconsidering thresholds within Regulation C;
  • Short-term, small-dollar lending rule: A proposed rule expected in early-2019 to consider revisions to the payday rule, including a change to the compliance date;
  • Debt collection: A proposed rule expected in March 2019 to address communication practices and consumer disclosures related to collecting debts. CUNA expects this rulemaking to be focused on the actions of third-party debt collectors;
  • Small business data collection: The small business data collection rulemaking is required by the Dodd-Frank Act, but the Act did not specify a deadline for the rule to be finalized.  As a result, the BCFP is moving the project from “pre-rule activities” to “longer-term status.” CUNA has pushed for the bureau to repeal the program;
  • Equal Credit Opportunity Act: The Bureau intends to reexamine the disparate impact doctrine “in light of recent Supreme Court case law and the Congressional disapproval of a prior bureau bulletin concerning indirect auto lender compliance.” CUNA has called for the bureau to align disparate impact standards; and
  • Unfair, Deceptive, or Abusive Acts or Practices: As Acting Director Mick Mulvaney announced earlier this week, the Bureau is actively considering a rulemaking to clarify the meaning of “abusive” under the section 1031 of the Dodd-Frank Act. CUNA has called on the bureau to clarify “abusive.”

The agenda does not list any rulemaking action on overdrafts, which CUNA has advocated for. Additional details can be found on CUNA’s Removing Barriers Blog.

Executive branch federal agencies are required by the Regulatory Flexibility Act to publish regulatory agendas twice a year. While the bureau is an independent agency, it voluntarily participates in the process.