FEDERAL GOVERNMENT RELATIONS
IBA Washington Trip - July 18-20
Register now for the IBA Annual Washington Trip, scheduled for July 18-20. Join with fellow Hoosiers as we travel to our nation’s capital to tell the story of Indiana banking to elected officials and regulators. This is an opportunity to discuss the impact legislation has had or may have on your bank, and how currently proposed policies could influence your customers and communities. It is more important now than ever to engage in grassroots advocacy as you share your concerns, your successes and what you believe will allow you to better serve your communities. We look forward to seeing you in Washington!
Financial Services Coalition Opposes Resolution to Invalidate OCC's 'True Lender' Rule
A coalition of financial trade groups wrote in opposition to a resolution that would invalidate the Office of the Comptroller of the Currency’s “true lender” rule that established a test to determine when a bank is considered the true lender on a loan made in a partnership with a nonbank entity.
In a letter to House leaders, the groups urged lawmakers to oppose the measure, noting that while changes should be made to the rule, invalidating it through a joint resolution issued under the Congressional Review Act would prohibit the OCC from reissuing a substantively similar rule and would “remove the opportunity to create a more fulsome true lender framework.”
The groups indicated that the next comptroller of the currency should analyze the rule and consider whether to initiate a new rulemaking to create a more robust true lender framework for providing safe and affordable credit to consumers. “The True Lender Rule has provided clarity for determining which entity originates a loan in a bank-nonbank partnership,” they wrote. “That legal certainty has tangible benefits for borrowers seeking affordable credit and for market participants, which will promote economic growth. We are concerned that using a CRA resolution of disapproval would reduce access to affordable credit, harming consumers and the communities in which they live.”
IRS Begins Contacting Families on Child Tax Credit
The IRS has started sending letters to more than 36 million American families who may be eligible to receive monthly Child Tax Credit payments starting in July.
The American Rescue Plan increased the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17.
Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.
The IRS will issue advance payments on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
Crapo Challenges New Bank IRS Reporting Proposal
Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) pushed back against a Biden administration proposal that would require financial institutions to report information on account flows to the IRS.
In a statement at a hearing on the IRS budget, Crapo said he opposes turning banks and brokers into government tax collectors and has strong concerns about the IRS collecting such data, noting that some existing reporting is duplicative.
The American Families Plan proposes requiring financial institutions to report to the IRS on account flows, including bank loans, on accounts over $600.
CFPB Issues FAQ on EFT and Reg E
The Consumer Financial Protection Bureau has issued frequently asked questions on unauthorized transfer and error resolution provisions under the Electronic Fund Transfer Act and Regulation E. The FAQs address situations where consumers are fraudulently induced by a third party to provide account information or private network rules that conflict with the regulation.
Agency Forum for Mutuals
The Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency are hosting a virtual event on operating mutual depository institutions in the current environment. Scheduled for Tuesday, June 29, the 2021 Joint Mutual Forum will feature senior officers from mutual organizations and the agencies.