June 13, 2024
CFPB: Banking Industry Should Create Level Playing Field With Credit Unions
The banking community scored a major victory today on Capitol Hill concerning a level playing field with credit unions.
During the House Financial Institutions Committee hearing with the Consumer Financial Protection Bureau, Congressman Emanuel Cleaver questioned CFPB Director Rohit Chopra about the Community Reinvestment Act.
“It is my strong and irreversible belief … that some non-bank entities have CRA requirements in sectors with significant public subsidies or support for business activities. Credit unions are exempt. Bankers have been demanding that they be included since I have been here. What say you to coming up with some kind of similar process to CRA that would be used in credit unions like Navy Federal?”
Chopra agreed with Cleaver and even said the banking industry should attempt to create a level playing field.
“Chopra’s statement to the committee is a significant win for our industry,” said MBA President and CEO Jackson Hataway. “Many voices and efforts led to this moment, but I can say with absolute certainty that our visit and conversation with Congressman Cleaver this spring played a major role in today’s events.”
Hataway and several MBA members met with Cleaver in March during the American Bankers Association’s Washington Summit. In their meeting, bankers discussed the reported lending disparities by Navy Federal Credit Union and the lack of requirements to adhere to CRA. Bankers emphasized how CRA prevents the kinds of abuse Navy Federal CU was committing within the banking environment.
“Congressman Cleaver understood our concerns, and he is opening up discussions that can lead to a level playing field between banks and credit unions that act like banks but aren’t regulated like banks,” Hataway said.
Also at today’s hearing, Congressman Blaine Luetkemeyer pressed Chopra to reign in data collection that “endangers many citizens and businesses unnecessarily” under the Beneficial Ownership rule, as well as “junk fees.”
“That word really riles me up because it’s not a legal enforceable term; it’s something you guys have made up,” Luetkemeyer said.
Congresswoman Ann Wagner slammed Chopra on the agency’s rule to lower credit card late fees, noting that it will fuel persistent credit card debt among consumers as interest accrues on their increasing balances.
MBA Launches New Legal Service For Member Banks
For 45 years, MBA has prioritized compliance assistance for its member banks and has answered hundreds of thousands of questions from thousands of bankers. However, as the amount and complexity of banking laws and regulations have increased significantly throughout the past several years, the need for banking-related legal expertise has grown. MBA is excited to launch a new program — Bankers Consulting Services — that offers expert, cost-effective legal services for banks.
“Issues and questions that bankers face daily have become more complicated,” said MBA Senior Vice President Carol Barnett. “Often, bankers need legal interpretation and assistance, which MBA cannot provide as part of its compliance services. That’s where Bankers Consulting Services can help.”
Bankers Consulting Services offers expert, cost-effective legal services for banks that complement MBA’s current compliance services. Through Bankers Consulting Services, banks receive accurate, practical legal services from Missouri-licensed attorneys specializing in banking. Their extensive depth of knowledge will assist banks with issues that include the following.
- basic legal consultations for bank transactions and human resources issues
- loan and account documentation review
- assistance drafting basic transactional forms and agreements
- legal assistance with various topics including:
- garnishment
- powers of attorney
- offset
- UCC Articles 3,4,8 and 9
- bankruptcy and creditor’s rights
- trusts and other legal entities
“Both Bankers Consulting Services and MBA Compliance Services work closely together to ensure the advice your bank receives is consistent and accurate,” Barnett said.
Bankers Consulting Services is a flat fee-based legal service. Most of BCS’ legal services are covered by a set annual fee based on the asset size of the bank.
“This service is designed to help our members with those day-to-day legal questions that come up on a variety of different topics that the BCS attorneys experience on a regular basis,” Barnett said. “It complements the established relationships that bankers already have with their attorneys.”
Additional information is available online, and bankers can contact Barnett for more details.
MBA Outlines Three-Year Strategic Plan
At its annual convention last Wednesday, MBA President and CEO Jackson Hataway shared the association’s three-year strategic plan with members.
Hataway told members that the strategic plan has been in development for more than a year. An analysis and needs assessment were conducted by MBA staff. That analysis was then reviewed by a planning committee of MBA board members who provided their thoughts on the direction of the association. The planning committee then shared the proposed strategic plan with the MBA Board of Directors, which ratified the plan in April.
The plan outlines four goals.
- Maintain Missouri as a preeminent state for banking.
- Make every banker an advocate.
- Innovate to address evolving member needs.
- Maximize member value.
“Our strategic plan is focused on four pillars: advocacy and government affairs, member experience and engagement, service optimization and innovation, and communications and scale,” Hataway said. “Our goal is to simplify engagement with MBA while enhancing value for Missouri banks and increasing our impact on critical issues.”
Hataway notes MBA staff has already begun working on initiatives in each of the four pillars and that updates will be provided to members throughout the year.
Questions about the strategic plan can be directed to Hataway.
Submit Nominations For 2024 NextGen Banking Leadership Award
The Next Generation in Banking Leadership Award recognizes outstanding achievement of a Missouri banker employed by an MBA-member bank. MBA encourages its member banks to submit a deserving nominee from your bank for the 2024 award.
Only bankers employed by an MBA-member bank are considered for this award. Considerations in the selection process include the following about the nominee.
- banking career
- service to the community
- commitment to personal and professional development
- MBA involvement
- other notable achievements and accomplishments
A selection committee approved by the Missouri Bankers Foundation reviews nominations and conducts in-person interviews at MBA’s office in September. All finalists must participate in the interview process.
The 2024 Next Generation in Banking Leadership Award will be presented at the NextGen Leadership Conference scheduled Oct. 3-4 in Kansas City. The recipient also will be honored at MBA’s Executive Management Conference scheduled Dec. 4-6 in Kansas City and will be nominated by MBA for the American Bankers Association Emerging Leaders Award.
In addition, the winner receives $250, an engraved award and statewide recognition. The Missouri Bankers Foundation also makes a donation to the recipient’s chosen charity.
Additional information and a nomination form are posted online, and nominations are due Monday, July 8. For more information, please contact MBA Vice President Emily Lewis.
NextGen To Host Free Events At Kansas City, St. Louis Fed
The MBA Next Generation in Banking and the Federal Reserve Banks are excited to welcome Missouri bankers for NextGen Day at the Fed! These free events will be held Wednesday, July 10, at the Federal Reserve Bank of Kansas City and Friday, July 19, at the Federal Reserve Bank of St. Louis.
“This is a unique opportunity for bankers to hear from economists and learn about resources made available through the Federal Reserve Bank,” said MBA Vice President Emily Lewis. “It also provides great networking with peers from across the state.”
Registration is required for these events. The registration deadline for the Kansas City Fed visit is Wednesday, July 3, and the registration deadline for the St. Louis Fed visit is Friday, July 12.