Compliance Blog

Written by Steve Van Beek

Last Thursday was a busy day on the Hill with NAFCU testimony in both houses of Congress.  Mike Lussier, President/CEO of Webster First FCU and NAFCU Board Chair, testified before the Senate Banking Committee on raising the member business lending cap.  The hearing focused on S. 509 which would raise the member business lending cap from the current 12.25% up to 27.5% if certain conditions are met.  Additional information on this bill and a similar version in the House can be found here.

In the House, Mark Sekula, Executive Vice President and Chief Lending Officer of Randolph-Brooks FCU, testified on NAFCU's behalf before the House Small Business Subcommittee on Economic Growth, Tax and Capital Access.  One of the points raised by Sekula was the impact Dodd-Frank would have on member business lending.  Specifically, Section 1071 of Dodd-Frank includes a new collection and reporting requirement for business lending. 

As I've mentioned before, the CFPB has issued one piece of regulatory guidance - which is on the effective date of Section 1071.  A letter from the CFPB's General Counsel indicates these requirements will not take effect until regulations are finalized by the CFPB.

The Federal Reserve maintains oversight of Section 1071 requirements for certain motor vehicle dealers and followed the CFPB's lead - issuing a proposal that delays the effective date of Section 1071 for these entities as well.

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Earlier this week, NCUA announced a few retirements and a couple of promotions.  Bob Fenner, the longtime NCUA General Counsel, will retire August 1st and be replaced by current Deputy General Counsel Mike McKenna.  In the Office of Examination & Insurance, Larry Fazio will be taking over as Director.  Current Director Melinda Love will move to Fazio's current position as Deputy Executive Director until her retirement at the end of the year.  The changes take place August 1st.