#2022-23, August 12, 2022

MBA Joins with State, National Bank and Credit Union Associations in Opposing Bill to Expand Durbin Amendment

The Association joined state bankers and credit union associations along with the American Bankers Association (ABA) and the Credit Union National Association (CUNA) on a letter late last week sent to Congressional leaders opposing S. 4674, the Credit Card Competition Act of 2022. The measure, which was introduced by Sens. Roger Marshall (R-KS) and Dick Durbin (IL), creates new credit card routing mandates that will affect banks that issue these cards.

As we reported previously in the Washington Update, legislation requires covered credit card issuers to add a second network to their customers’ cards.  However, banks would only be allowed to choose from certain options set by the Federal Reserve.  The bill also mandates that banks accept virtually any kind of transaction, regardless of the security or fraud recourse it carries, forcing institutions to utilize many more than two networks.

The letter emphasizes that S 4674 will reduce consumer choice, threaten consumer privacy and data security, adversely affect banks and credit unions, and cause the elimination of credit card rewards programs that consumers value.

To read the letter, click here.

FHFA, Fannie, Freddie Mandating New Data Collection Requirements for Mortgage Servicers

According to a notice from the Federal Housing Finance Agency (FHFA) issued earlier this week, Fannie Mae and Freddie Mac will require servicers to obtain and maintain borrowers' fair lending data on loans they service, and to ensure that the data is included in servicing transfers throughout the mortgage term.  The changes, which are effective on March 1, 2023, require the collection of the borrowers’ age, race, ethnicity and gender along with preferred language

Freddie Mac issued a bulletin on the new requirement noting that the data elements must be stored in a format that can be searched, queried and transferred. Fannie Mae also released an updated servicing guide related to the new requirements.

To view the Fannie Mae servicing guide, click here.  To view the Freddie Mac bulletin, click here.