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Consumer Financial Protection Bureau (CFPB)
CFPB Blog: Servicemembers Continue to Face Major Financial Challenges
The CFPB issued a blog post which focuses on challenges faced by servicemembers and highlights the protections they are entitled to under the SCRA. The blog provided insight into three key areas:
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As interest rates remain high, too many companies still fail to provide servicemembers reduced rates on loans they took out before military service;
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Protecting servicemembers from military allotment system abuses; and
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Protecting servicemembers from identity theft.
CFPB Issues New Report on State Community Reinvestment Laws
The CFPB published an analysis on state Community Reinvestment Act laws, highlighting how states ensure financial institutions' lending, services, and investment activities meet the credit needs of their communities. The report examined the laws of seven states (Connecticut, Illinois, Massachusetts, New York, Rhode Island, Washington, West Virginia) and the District of Columbia, and found that many of those states adopted laws similar to the federal Community Reinvestment Act in decades following the 1977 passage of the landmark federal anti-redlining law.
While the federal Community Reinvestment Act law applies strictly to banks, state reinvestment laws can apply to a wide range of financial institutions, including credit unions and nonbank mortgage companies. Banks now originate and hold a much smaller share of outstanding mortgage debt than they did when the legislation was originally enacted. In 1977, banks held 74% of outstanding mortgage debt. By 2007, this share had declined to just 28%. As of 2021, nonbank mortgage companies originated 64% of conventional home purchase mortgage loans, compared to the 25% originated by banks.
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Arizona Families Tax Rebate
Recently the Arizona Families Tax Rebate was deployed, which is aimed at providing financial relief to nearly 750,000 families in the state.
What is the Arizona Families Tax Rebate?
This rebate, the first of its kind, is a result of the state budget that passed earlier this year. Eligible families can anticipate receiving up to $750 in tax rebates, offering a vital financial boost in the face of rising costs and inflation.
How Does It Impact Credit Unions?
As credit unions, you can expect to see direct deposits related to the Arizona Families Tax Rebate landing in your members' accounts. In addition, credit unions should be prepared to address questions from credit union members.
Where can Members Find Eligible Criteria?
The eligibility criteria, along with a full FAQ can be found on the AZ Department of Revenue Website.
How can Members Check Their Rebate Status?
Members can visit the Arizona Families Tax Rebate Portal to check their rebate status.
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Audit the Audits – First Amendment Audits
A recent trend referred to as Audit the Audits or First Amendment Audits has become the ‘thing’ on social media. The majority or the videos are posted on YouTube. The practice encourages its members to take pictures or videos from public spaces. Often the videos are of financial institutions, restaurants, and government buildings. The goal is to provoke a challenge to their 1st amendment right to take the pictures and hopefully have law enforcement called. The encounter is then put on social media with the intent of shedding negative light those being recorded.
Here is a recent example of one of these audits that happened in the Northwest - https://www.youtube.com/watch?si=Ji7uDfQelOaylKB_&v=5PzAl7gjeJU&feature=youtu.be
Credit unions may wish to have a discussion with the branches on what to do if they notice someone recording them, such as closing all of the blinds to create privacy within the branch.
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