Today's Headlines

    AFSA Participates in an SBA Roundtable on Small Business Lending

    Last week, AFSA staff attended a small business roundtable at the Small Business Administration’s Office of Advocacy. Participants discussed the Consumer Financial Protection Bureau’s (CFPB) mortgage servicing rules, qualified mortgage rule, and request for information about the small business lending market. Industry representatives were joined by several people from the CFPB.

    In addition to last week’s roundtable, the Office of Advocacy will be hosting Idaho Regulatory Reform Roundtables in Boise and Coeur d’Alene this month. The purpose of these roundtables is to help identify specific regulatory barriers to small business growth through first-hand testimony and thereby assist federal agencies in complying with the president’s directive to eliminate burdensome regulations.  

    The roundtables will be on July 11 in Boise and Coeur d’Alene on July 13.

    The Office of Advocacy has also established an online form for small businesses who have regulatory issues they'd like to share.

    Joint Trades Ask for DOJ Meeting

    AFSA Staff

    On June 30, AFSA joined other trade associations in a letter to Attorney General Jeff Sessions to discuss the Department of Justice’s (DOJ) approach to enforcement of fair lending laws. The associations wrote, “We believe that this Administration has an opportunity to align fair lending policy with Supreme Court precedent and address constitutional concerns regarding the consideration of race in decision-making.”

    The letter went on to state, “Our members are committed to fair lending and expend substantial resources to ensure that credit decisions are based on a consumer’s qualifications for credit and without regard to factors such as race or national origin. The civil rights team of the previous Administration, however, sought to use the rulemaking and enforcement process to establish novel and overreaching requirements that contradict Supreme Court precedent.”

    The DOJ has acknowledged the letter and associations are hopeful that the request for a meeting will be granted.

    AFSA Supports FCC’s Efforts to Eliminate Unlawful Robocalls

    AFSA Staff

    On July 6, AFSA submitted a letter to the Federal Communications Commission (FCC) supporting its efforts to prevent consumers from receiving illegal robocalls. The FCC’s proposal would allow providers to block illegal robocalls. The letter stated, “AFSA recognizes that illegal robocalls are, at the very least, annoying for consumers. At most, they can be quite harmful.”

    In the letter, AFSA quoted Commissioner Michael O’Rielly’s statement, which said, “Unlike the prior Commission, whose misguided interpretations of the [TCPA] have exposed legitimate businesses to liability for trying to provide useful information that their customers expect to receive, this item seeks to comment on ways to stop actual bad actors from making calls to scam and defraud consumers.”

    AFSA also noted that TCPA litigation continues to grow each year, adding, “TCPA lawsuits are so lucrative, that some consumers have even made a business out of filing them.”

    Upcoming AFSA Webinars

    AFSA Staff

    AFSA hosts a variety of webinars throughout the year to educate members on some of the most pressing issues that face the financial services industry. The upcoming schedule is below, and registration is available, along with materials and webinar recordings of previous AFSA webinars, in the Webinar Resource Center are of the AFSA website.

    Preparing your Company for Compliance with the Current Expected Credit Loss (CECL) Model
    Presented by Dixon Hughes Goodman LLP
    Thursday, August 3, 1:30 p.m. ET

    June 2016 was a major milestone with the FASB’s issuance of the long awaited new accounting standard for loan losses. Designated the current expected credit loss model (commonly referred to as “CECL”), the standard requires entities to record credit losses at origination based on a life of loan loss concept. This webinar will also address commonly asked questions such as why the Financial Accounting Standards Board (FASB) changed the rules to the CECL methodology, what the required adoption timeline looks like by type of company, and how this will affect your balance sheet upon adoption.

    How Lenders can use Customer Intelligence to Reach Prospects Digitally
    Presented by SourceLink
    Wednesday, August 30, 2:00 p.m. ET

    This webinar explores the role digital marketing has in the current landscape, and how digital modeling and targeting can take place, even for email, mobile, display, and social media. The presentation will look closely at how lenders who are used to print media, and doing prospect mailings from list pulls or credit bureau data can use digital media to target and reach potential borrowers online at a lower cost while still be targeted in their marketing efforts.

    Learn to See the Credit Invisibles
    Presented by Clarity Services
    Wednesday, Sept. 13, 2:00 p.m. ET

    Credit invisible” is a term used in the prime lending space to describe a consumer with no credit history in a traditional credit bureau file. “Thin file” and “stale file” refer to consumers with either limited credit history and/or old information (no tradeline activity in the past 24 months, for example). It is extremely difficult for lenders to underwrite individuals with such little information. However, many consumers who are deemed credit invisible or thin/stale file are active in the subprime lending space and have credit histories in alternative credit bureaus. Learn who these consumers are and what the most important factors are for underwriting?

    If you are interested in conducting a webinar, please contact Dan Bucherer, Communications Manager.

    Nissan Announces Leadership Changes

    AFSA Staff

    Mark Kaczynski, president, Nissan Motor Acceptance (NMAC), has been named vice president, Administration and Finance, INFINITI Motor Company. According to a press release, he will “report to Joe Peter, chief financial officer, and to Roland Krueger, president, INFINITI Motor Company” and will be based in Hong Kong.

    Kevin Cullum, currently general manager, Nissan Canada Finance, has been promoted to president, NMAC, replacing Kaczynski. In his new role, Cullum will report to Rakesh Kochhar, senior vice president, Finance and Global Sales Finance Business Unit, and he will be based in Franklin, Tenn.

    The changes are effective August 1.

    AFSA’s Himpler to Speak at FTC Military Consumer Financial Workshop

    AFSA Staff

    AFSA EVP Bill Himpler will present at the 2017 Military Consumer Financial Workshop: Protecting Those Who Protect Our Nation, hosted by the Federal Trade Commission (FTC) on July 19 in San Antonio, Texas. The workshop is a discussion of financial issues and scams that can affect military consumers, including active duty servicemembers in all branches and veterans.Opening remarks will be presented by FTC Acting Chairman Maureen K. Ohlhausen.

    Himpler will speak as part of a panel entitled Military Consumers’ Experience in Other Lending along with Nicholas Armstrong, Ph.D., Senior Director for Research and Evaluation, Syracuse University Institute for Veterans and Military Families and Steven Robinson Assistant Attorney General and Managing Attorney, San Antonio Office, Texas Office of Attorney General. The panel will be moderated by Malini Mithal Acting Associate Director, FTC Division of Financial Practices.

    Military consumer advocates and groups, government representatives (local, state, and federal), military legal services and legal clinics (including those at universities), all service branches, and industry representatives will discuss:

    • Auto purchase, financing, and leasing
    • Student and other lending, including installment credit practices
    • Debt collection
    • Legal rights and remedies
    • Financial literacy and capability, including identity theft and financial resources

    “Helping servicemembers and veterans avoid fraud, learn about their legal rights and remedies, and find resources that protect them in the financial area is a top priority.”  Acting Chairman Ohlhausen said.  “I look forward to hearing from speakers in the private sector, military, and government about how to best protect military consumers on these issues.

    Whitepaper Highlights MAPR's Negative Effect on Access to Credit

    AFSA Staff

    On July 5, AFSA’s State Government Affairs department published its All-in APR white paper. Until the advent of the “all-in” Military Annual Percentage Rate (MAPR), state legislation that sought to impose interest rate caps used Annual Precentage Rate (APR) definitions consistent with the Truth in Lending Act (TILA). After 2007, a minor trend emerged with some lawmakers attempting to incorporate the MAPR method of calculation into lending laws that applied to all consumers, not just active military personnel. AFSA’s white paper provides an overview of measures taken by states to impose rate caps with APR variants more broad than TILA on certain forms of lending. It also highlights legislative trends and recent state legislation that would set rate caps using an APR calculation consistent with TILA.

    Redefining APR broadly based on the Department of Defense’s MAPR model would have a severe detrimental effect on the ability of financial institutions to continue to provide credit to consumers. All-in rate caps undermine the decades-old, well-understood, and reliable standard set by the TILA calculation of APR and risk creating widespread confusion as to appropriate disclosures for consumers and artificially lowering effective APR. AFSA is committed to monitoring the ongoing evolution of the laws and regulations surrounding all-in rate caps.

    AFSA’s State Government Affairs team publishes white papers monthly, and members can find previous papers on AFSA’s website under the SGA Resources section.