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          Credit Reporting Bill                                  Hurricanes Not Expected to

          Introduced in Wake of Equifax                          Impact Long-Term Growth
          Breach                                                 Members  of  the  Federal  Open  Market  Committee

          As the fallout continues from the Equifax              acknowledged  the  near-term  economic  impact  of  the  recent
          data breach, Rep. Patrick McHenry                      hurricanes, but most said they expected “moderate” growth that
          (R-N.C.) has introduced a bill making                  would normalize in the medium term, according to minutes
          several changes to federal regulation of               from the committee’s Sept. 19-20 meeting. Some committee
          “large consumer reporting agencies” like               members agreed that inflation uncertainty should warrant no
          Equifax, Experian and TransUnion. The bill             rate hikes in the near term.
          requires the Federal Financial Institutions            They did agree, however, that the timing and size of future
          Examinations Council to subject large                  rate hikes will depend on the economic outlook as informed
          credit bureaus to cybersecurity supervision   Patrick McKenry  by incoming data, and said they expected economic conditions
          and exams by a designated FFIEC agency.                will evolve in a manner that will warrant gradual increases.” The

          McHenry’s bill would target the practice of using Social Security   committee held the target range for the federal funds at 1 to
          numbers to verify identity by prohibiting large consumer   1.25 percent and announced that they will begin (in October)
          reporting agencies from making credit reports with SSNs or   to wind down the $4.5 trillion portfolio of securities purchased
          using them for identification purposes.                as part of quantitative easing programs between 2008 and 2014.
                                                                 To view the minutes visit:
          The bill would also require credit bureaus to place security
          freezes on consumers’ credit files within five days of a   monetarypolicy/files/fomcminutes20170920.pdf
          consumer’s request. Bureaus may charge no more than $5 for
          placing, lifting or removing a freeze, and no fee may be assessed   Survey: Many Community
          for identity theft victims, minors, seniors or active-duty service   Banks Have Online Loan
          members. It includes provisions on temporary lifting of these
          freezes. Under the bill, if a lender requests access to a credit   Applications in the Works
          report in connection with an application for credit and the file   On the consumer loan front,
          is frozen, the loan application may be treated as incomplete.  according to the recent Fed/
          To read more visit:    CSBS survey, 83 percent of
          documentsingle.aspx                                    community banks continue
                                                                 to offer single-family fixed-
          National Flood Insurance                               rate mortgages,  although
                                                                 3 percent said they plan to
          Program Exhausts Borrowing                             exit the business. More than
          Capacity                                               nine in 10 offer auto loans,
                                                                 79 percent offer home equity lines of credit, and 82 percent offer
          The National Flood Insurance                           small-dollar unsecured loans. However, 3.2 percent said they
          Program (NFIP) has depleted                            would exit the small-dollar business.
          its capacity to borrow from
          the U.S. Treasury Department                           Mobile banking, electronic bill pay, and remote deposit capture
          following the destruction of                           are nearly universal at community banks, with 94 percent, 91
          Hurricanes Harvey, Irma, and                           percent, and 87 percent, respectively, saying they currently offer
          Maria, according to the Federal                        or plan to offer the service soon. Online loan applications are
          Emergency Management Agency                            likely to continue surging among community banks, with 24
          (FEMA). The NFIP borrowed $5.8 billion on September 20 to   percent saying they plan to join the 33 percent currently offering
          fund losses and has bumped up against its statutory borrowing   the service. Likewise for personal financial management (PFM),
          cap of $30 billion. The NFIP has paid more than 88,000 claims   nearly 10 percent said they expect to implement the service,
          totaling $925 million in Texas and Louisiana, and has paid $26   bringing the total of community banks offering PFM in the
          million on 25,000 claims submitted from Florida, Georgia,   future to nearly 50 percent.
          South Carolina, Alabama, Puerto Rico, and the U.S. Virgin   To view the survey visit: https://www.communitybanking.
          Islands. The NFIP has been temporarily reauthorized through   org/~/media/files/CB21pub_2017_BOOK_web.pdf
          December 8.

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