NCUA Rescinds Most COVID-19 Guidance

The Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of 1996 called on the federal bank regulatory agencies to review their regulations every 10 years to identify any outdated, unnecessary, or unduly burdensome regulations. Although the National Credit Union Administration (NCUA) is not subject to the EGRPRA, the agency intends to voluntarily participate in this decennial review process. On May 23rd, the NCUA issued its first of four Federal Register notices requesting comment on the following regulations: Part 701 - Organization and Operation of Federal Credit Unions Part 702 - Capital Adequacy Part 703 - Investment and Deposit Activities Part 705 - Community Development Revolving Loan Fund Access for Credit Unions Part 707 - Truth in Savings Part 708 - Mergers and Conversions Part 712 - CUSOs Part 714 - Leasing Part 721 - Incidental Powers Part 723 - Member Business Loans / Commercial Lending Part 724 - Trustees and Custodians of Certain Tax-Advantaged Savings Plans Part 725 - NCUA Central Liquidity Facility Part 741 - Requirements for Insurance You can access the NCUA's notice here .

On Thursday, May 16 th , the United States Supreme Court issued its long-awaited ruling in CFPB v. Community Financial Services Association of America. In a 7-2 decision, the court rejected a challenge to the constitutionality of the Consumer Financial Protection Bureau’s funding structure. As a result of the court’s opinion, the nationwide injunction delaying compliance with the Bureau’s Section 1071 small business lending data collection rule has now been lifted. Under the terms of the original injunction, the CFPB was to extend the mandatory compliance dates for a period of time equal to the length of the injunction (290 days). On Friday, May 17 th , the agency announced its intention to issue an interim final rule to extend the mandatory compliance dates as follows: From October 1, 2024, to July 18, 2025, for financial institutions that originated at least 2,500 covered transactions in both 2022 and 2023 From April 1, 2025, to January 16, 2026, for financial institutions that originated between 500 and 2,400 covered transactions in both 2022 and 2023 From January 1, 2026, to October 18, 2026, for financial institutions that originated between 100 and 499 covered transactions in both 2022 and 2023 The injunction delaying the effective date of the CFPB’s credit card late fee rule was also impacted by the Supreme Court’s decision. Large card issuers should monitor the ongoing litigation in connection with that rulemaking to determine next steps. With its win at the nation’s highest court, an already aggressive CFPB is more emboldened than ever. The remainder of 2024 promises to be a whirlwind when it comes to compliance and consumer protection for financial institutions. Don’t hesitate to contact Michael Christians Consulting, LLC at michael@mchristiansconsulting.com for help!