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aRTiCLeS


          House Financial Services                                  •   The CFPB Examination and Reporting Threshold

          Committee Approves Several                                    Act (HR 3072), raises the examination threshold for
                                                                        institutions subject to the supervision and reporting
          Reg Relief Bills                                              requirements of  the  Consumer Financial  Protection
                                                                        Bureau from the current $10 billion to $50 billion. It
          During a two-day mark-up,
          the House Financial Services                                  was approved by a 39-21 vote.
          Committee approved 22 bills, a                            •   The Systemic Risk Designation Improvement Act
          number of which are aimed at                                  (HR 3312), which was approved by a vote of 47-12,
          reducing the regulatory burden                                removes the arbitrary $50 billion asset threshold used
          on banks, particularly community                              to designate firms as “systemically important financial
          banks. While a number of these                                institutions” (SIFIs) and subject them to enhanced
          bills were included in the Financial                          regulatory standards. Instead, the Federal Reserve
          CHOICE  Act  that  passed  the                                would be charged with making a determination that an
          House earlier this year, Committee Chairman Jeb Hensarling    individual financial institution, or group of institutions,
          (R-TX) decided to move individual bills separately in an effort   is  systemically  important  and  subject to enhanced
          to send the legislation to the Senate in a form that could be   supervision and prudential regulation.
          combined into a smaller regulatory relief package. A few of the
          more significant bills include:                         Resources Post-Equifax Data
             •   The TAILOR Act (HR 1116), which was approved on   Breach
                a 39-21 vote, directs the federal regulatory agencies to
                tailor their rulemakings in consideration of the risk   As the Equifax data breach, which
                profiles and business models of institutions that are   affected an estimated 143 million
                subject to such rules.                            Americans, continues to dominate the
                                                                  headlines, more resources are available
             •   The Privacy Notification Technical Clarification   to  assist  in  fielding  inquiries  from
                Act HR 2396), a bipartisan bill simplifies the notice   customers.
                requirements for financial institutions that have not
                changed their privacy policies. Under the bill, which   •   FS-ISAC’s Tips for Consumers:
                was approved on a 40-20 vote, institutions that only   “What to Do Post-Breach”
                share information within the statutory exceptions could   provides tips for consumers to help reduce the risk or
                use a simple disclosure mechanism using the Internet.  impact of data breaches including placing a credit
                                                                       freeze and/or fraud alerts on credit reports, leveraging
             •   The Financial Institution Customer Protection Act     banks’ safeguards, and checking credit reports annually.
                (HR 2706), which was approved by a 39-1 vote,          It also includes recommendations for consumers to
                prohibits the federal regulators from requesting or    protect personal and financial information.  To view
                requiring a financial institution to terminate a banking   the tips visit: https://www.fsisac.com/sites/default/files/news/
                relationship unless the regulator has a material reason.    FSISAC_TipsforConsumers-WhatToDoPostBreach-FIN.
                In addition, account termination requests or orders    pdf
                would be required to be made in writing and rely on
                information other than reputational risk.          •   The FTC blog, “Equifax isn’t calling,” warns that
                                                                       fraudsters will take advantage of the recent breach to
             •   The Home Mortgage Disclosure Adjustment Act (HR       trick consumers into providing personal information.
                2954), which received a 36-24 vote, exempts small      Equifax will not contact individuals to verify personal
                banks and credit unions from the new Home Mortgage     information.  To read more visit: https://www.consumer.
                Disclosure Act (HMDA) reporting requirements if they   ftc.gov/blog/2017/09/equifax-isnt-calling
                have originated 1,000 or fewer closed-end mortgages in
                each of the two preceding calendar years or originated   Tax Reform Should Tackle
                2,000 or fewer open-end lines of credit in each of the
                two preceding calendar years. The bill also repeals the   Credit Union Tax Exemption
                HMDA amendments included in the Dodd-Frank Act    As Congress and the Trump administration continue
                and withdraws the CFPB’s rule to impose the new and   negotiations over tax reform, they should address the tax-exempt
                modified HMDA data points scheduled to take effect   status of the credit union industry, a prominent economist wrote
                in January 2018.



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