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Legislative Update with Jay Kruse by Jay Kruse, Chief Advocacy Officer Good Morning! Both the House and Senate are back in session in Washington this week with legislators beginning consideration of infrastructure legislation and possible changes to credit interchange. Over the last few weeks there has been hope that democrat and republican negotiations are heading closer to a compromise regarding an infrastructure plan. However, we could be looking at a potential hiccup in the process today as Senate Majority Leader Schumer plans a procedural vote on the legislation even though the bill’s final text has yet to be released. This forced vote on legislation that doesn’t yet exist is sure to cause some angst with republicans, which will most likely be the reason the vote fails to receive the required 60 senators needed for passage. Have you filled out your Interchange Survey? Discussions are still occurring behind the scenes between legislator and interested parties regarding potential changes to credit interchange. We believe the potential changes which could result in additional interchange caps will have a huge effect on credit union profitability and the ability to effectively serve members. However, we need your help to aggregate interchange related data not included on the call report. Quantifying the costs and return on credit card programs and understanding the impact of potential regulations on credit unions and their members is critical to our urgent and proactive advocacy efforts. I know this is very sensitive information, but all data will be kept confidential and only reported in the aggregate as we continue our discussions with Senator Cramer (ND-R) who is considering cosponsoring this legislation. We will also hope to utilize and leverage this survey data during our Fall Legislative/Regulatory Hike the Hill taking place in Washington DC this September. Thank you in advance for your cooperation and support! <TAKE THE SURVEY> Adverse Market Refinance Fee Eliminated Late last week, “to help families reduce their housing costs,” the Federal Housing Agency (FHFA) announced the elimination of the Adverse Market Refinance Fee charged by Fannie Mae and Freddie Mac. If we jump in the time machine back to August 2020, DakCU along with other industry advocates pointed out the detrimental effects Fannie Mae and Freddie Mac’s new .5% Adverse Market Refinance Fee would have on both borrowers and financial institutions in the Dakotas as they tried to navigate their way through the nationwide pandemic. Also back in August 2020, we pointed out that both consumers and financial institutions felt blindsided by the decision and Senator Rounds (R-SD) led a congressional sign-on letter to FHFA Director Calabria reinforcing our concerns, which the rest of the Dakota congressional delegation also joined in on. The 50 basis point fee will be eliminated beginning with loan deliveries effective August 1, 2021. DakCU applauds the FHFA for acknowledging the need to eliminate this fee which will help to reduce the cost of credit to consumers. As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.
Legislative Update with Jay Kruse
by Jay Kruse, Chief Advocacy Officer
Good Morning!
Both the House and Senate are back in session in Washington this week with legislators beginning consideration of infrastructure legislation and possible changes to credit interchange. Over the last few weeks there has been hope that democrat and republican negotiations are heading closer to a compromise regarding an infrastructure plan. However, we could be looking at a potential hiccup in the process today as Senate Majority Leader Schumer plans a procedural vote on the legislation even though the bill’s final text has yet to be released. This forced vote on legislation that doesn’t yet exist is sure to cause some angst with republicans, which will most likely be the reason the vote fails to receive the required 60 senators needed for passage.
Have you filled out your Interchange Survey?
Discussions are still occurring behind the scenes between legislator and interested parties regarding potential changes to credit interchange. We believe the potential changes which could result in additional interchange caps will have a huge effect on credit union profitability and the ability to effectively serve members. However, we need your help to aggregate interchange related data not included on the call report. Quantifying the costs and return on credit card programs and understanding the impact of potential regulations on credit unions and their members is critical to our urgent and proactive advocacy efforts.
I know this is very sensitive information, but all data will be kept confidential and only reported in the aggregate as we continue our discussions with Senator Cramer (ND-R) who is considering cosponsoring this legislation. We will also hope to utilize and leverage this survey data during our Fall Legislative/Regulatory Hike the Hill taking place in Washington DC this September. Thank you in advance for your cooperation and support!
<TAKE THE SURVEY>
Adverse Market Refinance Fee Eliminated
Late last week, “to help families reduce their housing costs,” the Federal Housing Agency (FHFA) announced the elimination of the Adverse Market Refinance Fee charged by Fannie Mae and Freddie Mac. If we jump in the time machine back to August 2020, DakCU along with other industry advocates pointed out the detrimental effects Fannie Mae and Freddie Mac’s new .5% Adverse Market Refinance Fee would have on both borrowers and financial institutions in the Dakotas as they tried to navigate their way through the nationwide pandemic.
Also back in August 2020, we pointed out that both consumers and financial institutions felt blindsided by the decision and Senator Rounds (R-SD) led a congressional sign-on letter to FHFA Director Calabria reinforcing our concerns, which the rest of the Dakota congressional delegation also joined in on. The 50 basis point fee will be eliminated beginning with loan deliveries effective August 1, 2021. DakCU applauds the FHFA for acknowledging the need to eliminate this fee which will help to reduce the cost of credit to consumers.
As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.