ViClarity Compliance Update

NCUA Q1 Report released; CFPB proposes rule to eliminate medical debt from credit reports; RFI on challenges of AI in financial industry; and more. 

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NCUA Releases Q1 Report for State-Level Federally Insured Credit Unions
The National Credit Union Administration (NCUA) has released its Q1 2024 state-level credit union report. The report, known as the Quarterly Map Review, tracks specific performance indicators for federally insured credit unions in all 50 states and the District of Columbia. The Quarterly Map Review includes information on two important state-level economic indicators: the unemployment rate and home prices. Accordingly, some of the key indicators contained in the report also address the financial health and viability of federally insured credit unions. Read the full report here.
 
CFPB Proposes Rule to Eliminate Medical Debt from Credit Reports
The Consumer Financial Protection Bureau (CFPB) has proposed a rule that would remove medical bills from credit reports. According to the provisions of the proposed rule, the CFPB would prohibit credit reporting companies from sharing medical debts with lenders and would prohibit lenders from making lending decisions based on medical information. The CFPB noted that many credit reporting companies have already begun to lessen the extent to which medical debt is incorporated into determining credit scores. More on this topic here.
 
Treasury Department Issues RFI for Uses, Opportunities, and Challenges of AI
The U.S. Department of Treasury issued a Request for Information (RFI) concerning the “uses, opportunities, and risks” of Artificial Intelligence (AI) in the financial industry on June 6. More specifically, the Treasury is asking for information on the potential applications of AI within the financial industry, and the opportunities and risks that AI might pose should it be implemented within the financial sector. According to the RFI, the Treasury is seeking information on the potential benefits and challenges of financial institutions’ uses of AI for impacted entities. The deadline to provide comments or information is August 12. Learn more here.
 
CFPB Finalizes Rule to Recognize “Open Banking” Standards
The Consumer Financial Protection Bureau (CFPB) has undertaken an effort to recognize “Open Banking” standards in the U.S. financial industry. As part of that effort, the CFPB finalized a rule on June 5, which outlines the qualifications to become a recognized industry standard-setting body. The purpose of the recognition is to aid companies in identifying entities that are capable of setting industry standards so that companies can comply with the upcoming implementation of the Personal Financial Data Rights rule.
 
In addition to providing a way to be recognized, the CFPB is also including a procedure for the revocation of recognition of a standard setter and a maximum recognition period of five years. Following the end of the five-year period, a standard setter will have to re-apply to be recognized with the CFPB. In setting these precautions, the CFPB is trying to ensure that each standard setter will consistently adhere to the attributes set by the CFPB. As part of the publication of the final rule, the CFPB has issued a guide that details the application and recognition process. Currently, the CFPB is inviting interested companies to begin applying to be recognized.
Read the full article here.