Today, the American Financial Services Association (AFSA) joined several other financial services trade associations in a letter urging Congressional leaders to pass legislation to uniformly apply the Federal Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) accounting standards to all financial institutions, including other non-depository institutions.
In March, when President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law, Congress only included a temporary option for insured depository institutions to delay implementing CECL reporting requirements until after the national emergency had ended. However, shortly after the CARES Act’s enactment, the Federal Reserve issued an interim final rule allowing only insured depository institutions the option to defer CECL rules until 2022.
Unfortunately, non-depository financial companies, including installment lending and vehicle finance companies, were mistakenly left out of the CARES Act and the Federal Reserve’s interim rule delaying CECL rules, creating a disparity between bank and non-bank entities. While the goal was to record credit losses earlier to reduce procyclicality, without a uniform standard for the entire financial services sector, the new CECL standard will actually exacerbate procyclicality by requiring increased capital, resulting in reduced credit availability and higher costs of credit, effects that will likely be exacerbated for low- and moderate-income consumers.
At this crucial time for American consumers and businesses, AFSA believes Congress should be looking for ways to expand ways for consumers to maintain their vehicles, homes, and personal lines of credit.
Today, the American Financial Services Association (AFSA) joined several other financial services trade associations in a letter urging Congressional leaders to pass legislation to uniformly apply the Federal Accounting Standards… Read the rest
On July 28, 2020, the Consumer Financial Protection Bureau (CFPB) announced a request for information (RFI) on preventing credit discrimination and building a more inclusive financial system. Information about this effort is available… Read the rest
The American Financial Services Association‘s members have for more than a century believed that their success was built on the personal, face to face relationships they have built with their customers, sometimes generations of customers.… Read the rest
We know you’ve missed gathering with new customers; Let AFSA help strengthen your connection to the consumer finance industry!
Take advantage of the best deal all year! Enjoy a single year rate for the remainder of 2020 and 2021, plus FREE… Read the rest
In the latest episode of the AFSA Extra Credit Podcast, we talk with Andrea Cottrell, Associate with Hudson Cook LLP. Andrea works with financial service providers on compliance with federal and state regulations and consumer protection… Read the rest
The Consumer Financial Protection Bureau today announced that it will host a symposium to discuss the cost-benefit analysis of financial protection regulations on July 29 at 9:30 a.m. AFSA staff will attend.
“The symposium is intended to… Read the rest
Last week, the Federal Communications Commission (FCC) approved further rulemaking that would clarify that telephone companies are prohibited from imposing a charge on callers for removing erroneous call blocks and must implement a … Read the rest
The American Financial Services Association (AFSA) sent a letter yesterday to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Charles Schumer (D-NY) requesting that the following measures be included in the Senate pandemic… Read the rest
What Should We Expect? Federal & State Issues
There couldn’t be a more timely session on issues facing our industry. Join this session for an informative discussion on the latest federal, state, and legal issues affecting the financial… Read the rest
The American Banker reported on Sunday (July 19) what AFSA has been saying for years – banks aren’t making, and don’t want to make, small-dollar loans.
In the article, Uncertainty About CFPB Has Banks Leery of Small-dollar Lending, author… Read the rest
