Two consumer-credit industry executives were honored with the 2019 American Financial Services Association (AFSA) Distinguished Service Award (DSA) today at AFSA’s 2019 Annual Meeting in Nashville.

LISTEN

The Financial Accounting Standards Board yesterday unanimously delayed implementation of the Current Expected Credit Loss accounting standard until 2023 for most financial institutions. Banks that file with the Securities and Exchange Commission, except those defined as “smaller reporting companies” will still have to convert to CECL on January 1, 2020. All other institutions will have until 2023 to convert.

For months, the American Financial Services Association and other financial-services industry partners have urged the Financial Accounting Standards Board (FASB) to delay implementation of the new Current Expected Credit Loss (CECL) standard until its potential effect is studied. The new standard would require financial institutions to reserve for the lifetime expected losses of a loan at origination. Now, the Center for Responsible Lending (CRL), a consumer advocacy organization, has indicated it agrees with those pressing for a delay.

On Tuesday, October 15, the American Financial Services Association submitted a comment letter on the Consumer Financial Protection Bureau (CFPB)’s Advanced Notice of Proposed Rulemaking amending the October 2015 final rule on the Home Mortgage Disclosure Act (HMDA), noting that the Bureau should reduce the number of data points financial institutions must collect and report.

The AFSA Annual Meeting is next week and this is our last program update! Are you joining us in Nashville? There's still time to register and hear from Michael Marx, Senior Director of Reasearch and Insights at Visa on creating products and services for the next generation of consumers.

Given some Congressional skepticism of the direction of the Bureau since the departure of Director Richard Cordray, this hearing should provide for a lively discussion on policy preferences from House members in both parties. The hearing will be available on the HFSC website and AFSA staff will keep members informed.

Today, California Attorney General Xavier Becerra released the office’s long-awaited proposed regulations implementing the California Consumer Privacy Act (CCPA). AFSA previously submitted comments on behalf of its members, raising significant concerns with the draft regulations during the preliminary rulemaking process.

In this edition of the AFSA CEO Update, Bill Himpler outlines a few of the key issues the association is tracking, including a lawsuit in Nevada, the House Financial Services Committee schedule, and statements during the presidential campaign.

Yesterday, AFSA filed a motion for a preliminary injunction in its lawsuit in federal court seeking to enjoin enforcement of the spousal credit history provisions of Nevada SB 311/Ch. 280. The motion is available here.