Richard's Rapid Fire - April 27, 2018

REGULATORY ROUNDUP

Mulvaney Plans to Drop Public Complaints Portal – CBA has long advocated for unverified contents of the complaint portal to no longer be made public and this week the Bureau of Consumer Financial Protection’s Acting Director Mick Mulvaney acted on this request. While we fully support the Bureau fulfilling its important, Congressionally-mandated mission of compiling complaints, publishing unverified complaints – or worse using those complaints to paint a picture of guilt in the public domain – is irresponsible. It also is misleading, as the Bureau's own report to Congress stated more than 90 percent of those complaints were addressed by financial institutions. 
 
Constitutionality of the Bureau’s Single-Director Questioned – A case is being brought before the 5thCircuit Court of Appeals challenging the constitutionally of the Bureau’s single-director governing structure as a violation of the Constitution’s separation of powers clause. CBA has said since day one a single-director structure at the Bureau is not in the best interest of consumers and the banking industry. It concentrates too much power in the hands of a single individual and it does not promote certainty and stability during leadership transitions. 
 
Mulvaney’s Lobbying Comments – Speaking on the importance of talking to your member of Congress as “one of the fundamental underpinnings of our representative democracy,” Acting Director Mick Mulvaney said: “We had a hierarchy in [my Congressional office]. If you are a lobbyist that never gave us money I didn’t talk to you. If you’re a lobbyist who gave us money, I might talk to you. [If you were a constituent], I talked to you without exception -- regardless of the financial contributions.”
 
CBA Submits Comments on CID RFI – This week, CBA submitted comments pertaining to the Bureau’s request for information (RFI) on civil investigative demands (CIDs). In the letter, we raised various concerns, including, among others, the frequent overbreadth and burdensome nature of the CIDs, the lack of realistic timeframes to respond, and the inadequate Notification of Purpose. This is the first of many RFI comment letters from CBA. To learn more, you can read our letter and access the list of RFI topics online.
 
Bureau Finalizes “Know Before You Owe” Mortgage Disclosure Rule – The finalized rule addresses when mortgage lenders may pass on increased closing costs to consumers and disclose them on a Closing Disclosure. 
 
Comptroller Otting on the Issues – Speaking at a conference this week, OCC Comptroller Joseph Otting provided updates on the following pressing topics:
 
  • On a possible Fintech Charter:  The OCC is still deciding whether to issue a fintech charter; however, he noted new entrants into the marketplace would bring new perspectives;
  • On the Community Reinvestment Act (CRA):  There are plans to release an Advanced Notice of Proposed Rulemaking on CRA within the next four weeks; and,
  • On bank issued small-dollar credit:  Banks have a role in this space and can provide consumers with access to a well-regulated market. 

 

 

D.C. DOWNLOAD

House Financial Committee Leadership Shakeup – A host of House Republican retirements – including Speaker Paul Ryan (R-Wis.) and Rep. Jeb Hensarling (R-Texas) – will undoubtedly shakeup Republican leadership and committee chairmanships. Current Vice Chairman of the House Financial Committee Patrick McHenry (R-N.C.) may throw his hat in the ring for a leadership position or Chairman of the Financial Committee. According to McHenry, the decision depends on if Republicans retain control of the House. Should McHenry run for a leadership role, Reps. Blaine Luetkemeyer (R-Mo.), Sean Duffy (R-Wis.), Frank Lucas (R-Okla.) and Bill Huizenga (R-Mi.) have expressed interest in leading the committee.
 
House Expected to Move on Bipartisan Senate Banking Bill – House Financial Services Committee Chairman Jeb Hensarling (R-Texas) signaled an openness to passing the Senate’s bipartisan banking bill as is, a measure he previously sought to amend. This move should allow the bill, which CBA supports, to proceed to the House floor for a vote. The White House is pushing to have Congress pass the bill by Memorial Day.
 
 
 
TRENDING IN RETAIL BANKING
 
Reauthorizing the Higher Education Act – CBA’s Education Funding Committee met with lawmakers on Capitol Hill, Mark Calabria, Chief Economist for Vice President Mike Pence and other groups this week to advocate for reforms to right size the federal government’s role in student lending. Reauthorizing the Higher Education Act (HEA) has been a hot topic as of late and CBA is on the ground ensuring our members’ voice is heard.
 
 
Members of CBA's Education Funding Committee met with lawmakers in Washington, D.C. this week to discuss right-sizing the federal goverment's role in student lending -  a 2018 key priority for CBA. While on Capitol Hill, they were All Shook Up outside of Nevada Rep. Dina Titus' office. 
 
 
New CBA Suite 550 Podcast – With HEA top-of-mind, join CBA’s Education Funding Chair John Vidovich of Discover Financial and Vice Chair Christine Roberts of Citizens Bank as they discuss reauthorization efforts and how banks can help finance consumers’ education goals. 
 
 
 
 
CBA LEADERS
 
CBA CFPB Committee Chair Cindy Reeves of Frost – More than 40 years ago, CBA’s CFPB Committee Chair Cindy Reeves of Frost Bank began her career as a cashier for a local bank in Kansas. Today, she is EVP of Bank Compliance at Frost where she has served for over 20 years. Cindy has been an active member of CBA’s CFPB Committee since its inception, and we are thankful for her leadership. Please take a moment to listen to her thoughts and opinions via CBA’s podcast, Suite 550.
 
 
 
 
LAGNIAPPE
 
New Leadership at Regions – John Turner, current president of Regions Financial, will succeed Grayson Hall as CEO on July 2, 2018. Mr. Hall will remain with the bank as executive chairman through the end of the year.
 
Thank You Kevin Condon – The CBA Team sent Kevin Condon of Bank of America a Canucks Jersey for all his hard work and utmost dedication to CBA and CBA LIVE. We are glad to hear he enjoyed the gift and we are proud to have Kevin as Vice Chairman of our Deposits and Payments Committee.