On Compliance: More data could mean more reg relief

first_imgYou would be forgiven if you didn’t notice that the March meeting of the Consumer Financial Protection Bureau’s Credit Union Advisory Council focused on the issue of “alternative data.” Until mid-May, the agency had been accepting comments on using such information as rent, utilities, the frequency of changes in residences and employment, to name just a few examples, in the credit evaluation process. Alternative data can sometimes supplement credit scores and other more conventional measures of creditworthiness.This is an important topic, and there is concern is that the agency may burden it with unneeded requirements. The pace of final rules from CFPB that affect credit unions has slowed, but nonetheless—with the agency continuing to engage in a variety of rule-makings, proposals, enforcement actions, reports, blog posts, etc.—an issue that is significant but not imminent is easily lost in the shuffle. Before you know it, a host of requirements and extra costs can be imposed.Steps in Congress and within the administration have been initiated to curtail CFPB, but real changes are not expected anytime soon.A focal point is the Financial Choice Act, HR 10, which would limit the agency’s role and authority, among other provisions. House Financial Services Committee Chair Jeb Hensarling said the repeal of the Durbin amendment has been dropped to increase the bill’s chances for passage. A full House vote on HR 10 notwithstanding, the bill may stall in the Senate where Banking Committee Chairman Mike Crapo has said his committee is focusing on bipartisan measures. Senate Banking Committee hearings on regulatory relief have begun, but it is hard to see how the needed 60 votes could be assembled in the Senate to approve broad Dodd-Frank reform. 15SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading »last_img

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