AFSA Comments on Texas Finance Code October 30, 2019

AFSA’s State Government Affairs (SGA) team this week sent a comment letter to Texas Attorney General Ken Paxton in response to an opinion request  from a state representative regarding the Texas Finance code. In the request, the representative asked the attorney general if a “credit services organization”, which is the state’s definition of payday and vehicle title lender, could extend forms of consumer credit beyond those explicitly authorized - namely deferred presentment or motor vehicle title loans. In the letter, AFSA strongly urged the attorney general to uphold the current interpretation of the Texas Finance Code, which maintains that credit services organizations should only be allowed to extend the forms of consumer credit that are explicitly authorized. Unlike credit services organizations, AFSA members are regulated and licensed by the Texas Office of Consumer Credit Commissioner. Altering the existing interpretation of the Texas Finance Code by allowing unregulated and unlicensed credit services organizations to extend other forms of consumer credit will open the door to an increase in predatory lending practices in Texas.

AFSA Supports NHTSA Drive to Modernize October 29, 2019

The American Financial Services Association yesterday submitted a comment letter to the National Highway Traffic Safety Administration (NHTSA) voicing its strong support for a final rule allowing state adoption of electronic odometer disclosure systems.  Odometer disclosure statements are tied to vehicle sale and transfer documents.  State regulations have in the past required “wet” (i.e. handwritten) signatures as a means of preventing odometer fraud.  Now, state policymakers will have the opportunity to put in place more flexible rules that allow for an electronic signature.

AFSA Announces New Board Leadership October 24, 2019

The American Financial Services Association (AFSA) on yesterday announced that its Board of Directors elected a new chairman, chair-elect and vice chairman-treasurer for the next 12 months. The appointments were made at the close of the 2019 AFSA Annual Meeting in Nashville, Tenn.

AFSA Comments on HUD Disparate Impact Proposed Rule October 23, 2019

AFSA last week commented on the Department of Housing and Urban Development’s (HUD) proposed rule amending its interpretation of the Fair Housing Act’s disparate impact standards. Specifically, HUDs proposed rule changes move to align the standard with the Supreme Court’s decision in Inclusive Communities.

FASB Approves Delay of CECL October 17, 2019

The Financial Accounting Standards Board yesterday unanimously delayed implementation of the Current Expected Credit Loss accounting standard until 2023 for most financial institutions. Banks that file with the Securities and Exchange Commission, except those defined as “smaller reporting companies” will still have to convert to CECL on January 1, 2020. All other institutions will have until 2023 to convert.

Consumer Advocates, Industry Agree: CECL Should be Delayed October 16, 2019

For months, the American Financial Services Association and other financial-services industry partners have urged the Financial Accounting Standards Board (FASB) to delay implementation of the new Current Expected Credit Loss (CECL) standard until its potential effect is studied. The new standard would require financial institutions to reserve for the lifetime expected losses of a loan at origination.  Now, the Center for Responsible Lending (CRL), a consumer advocacy organization, has indicated it agrees with those pressing for a delay. 

AFSA Comments on HMDA Proposed Rule October 15, 2019

On Tuesday, October 15, the American Financial Services Association submitted a comment letter on the Consumer Financial Protection Bureau (CFPB)’s Advanced Notice of Proposed Rulemaking amending the October 2015 final rule on the Home Mortgage Disclosure Act (HMDA), noting that the Bureau should reduce the number of data points financial institutions must collect and report.