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NAFCU's widely read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources. 

Where funding stands

The House Thursday passed its Legislative Branch funding bill, which would provide $6.7 billion to run congressional operations. The House still has six funding bills left to pass.

In addition, the Senate Wednesday passed its three-bill, $280 billion funding package for fiscal year 2024 in an 85-15 vote. The Senate will now turn its focus toward a continuing resolution that will prevent a government shutdown when temporary funding runs out on Nov. 17, as House and Senate leaders have yet to begin negotiations toward bipartisan funding bills.

CFPB breaks down its personal financial data rights rule

The CFPB published a new resource on its proposed rule to implement Section 1033 of the Dodd-Frank Act, which relates to personal financial data rights. The Fast Facts document provides a high-level overview of the topics covered in the proposal.

NAFCU and other financial trade organizations have called on the bureau to extend the comment period from 60 days to 90 days. The association solicited member feedback on the proposal via a Regulatory Alert sent earlier this week. Comments are due to NAFCU Dec. 1; comments are due to the CFPB Dec. 29.

SBA grants three new SBLC licenses

The White House Wednesday announced the Small Business Administration (SBA) has granted three new Small Business Lending Company (SBLC) licenses to lenders focused on historically underserved markets, marking the first expansion of the SBLC program in more than 40 years.

NAFCU has highlighted the risks that would be introduced to the 7(a) and microloan programs if unregulated, fraud-prone fintechs were given access, most recently in response to the NAFCU-opposed SBA final rule to amend SBA loan program regulations to lift the moratorium on licensing new small business lending companies (SBLCs) and add a new type of entity, called a “Community Advantage SBLC.” Additionally, although NAFCU supported the SBA’s efforts to increase access to lending in underserved communities, the association has raised concerns that the Community Advantage SBLC program lacks the specificity and requirements necessary to achieve that goal.

House, Senate committees discuss veterans’ economic and financial wellness

Thursday, the House Veterans’ Affairs Subcommittee on Economic Opportunity and Senate Banking Committee both held hearings to review veterans' economic and financial wellness.

During the Senate Banking Committee hearing, much of the questioning focused on the role the CFPB plays in ensuring benefits are provided to servicemembers, as well as the number of complaints that have been filed to the CFPB for inadequate services and communications. In addition, Sen. J.D. Vance, R-Ohio, highlighted the help credit unions provide servicemembers when it comes to financial literacy and wellness tools.

Ahead of the hearings, NAFCU offered support for the Veterans Members Business Loan Act, which would exempt loans made to veterans from the credit union member business lending (MBL) cap and has been introduced in both chambers.

NCUA’s DEI Summit

This week the NCUA held its 2023 DEI Summit, where attendees explored the value proposition of diversity, equity, and inclusion (DEI) in the credit union industry, shared best practices, and developed solutions to industry-specific challenges. In remarks during the event, NCUA Chairman Todd Harper emphasized the power of allyship to achieve DEI goals, highlighting that while credit unions have made strides in DEI, they also have room for improvement, according to recent research by the NCUA’s Office of the Chief Economist. The research, which evaluates the social attributes of mortgages originated by credit unions in 2022, yielded mixed results for credit unions, finding that credit unions have higher Social Index scores than entities regulated by other federal financial institutions regulators, but trailed entities regulated by the Department of Housing and Urban Development, including non-depository institutions.

In addition, Board Member Rodney Hood celebrated the significant evolution of the event and the ongoing commitment of the credit union community to DEI principles in his remarks.