As federal regulators look for ways to address cybersecurity and data privacy concerns, the financial industry continues to be vocal about what it believes is necessary to achieve the proper level of security across the industry.
Whether advocating for changes to proposed regulations on cybersecurity reporting or forming groups to discuss developments in artificial intelligence (AI), there is no shortage of feedback from the industry.
Read about some recent developments related to technology measures and more in this roundup:
Trades say CISA must update cybersecurity reporting rule proposal
In a letter to the Cybersecurity & Infrastructure Security Agency (CISA) about its proposed rule to implement new cyber incident reporting laws, the American Bankers Association, Bank Policy Institute, Institute of International Bankers and the Securities Industry and Financial Markets Association pointed out several concerns about the provisions. The proposal would require victims of data breaches and other cyber incidents to report to CISA within 72 hours of determining that an incident occurred. The rule is intended to align with the Cyber Incident Reporting for Critical Infrastructure Act, which directs CISA to implement a rule to provide regulators with timely intelligence without diverting front-line defenders from the immediate task of stopping the attack.
In order to adequately meet its congressional directive, the trade groups recommended CISA make the following changes to the rule:
- Limit the scope of reporting to what matters most.
- Focus data collection on what companies “need to know” to prevent contagion.
- Clarify and reduce the supplemental reporting requirements applicable to covered entities.
- Reduce the amount of time firms are required to keep forensic data.
Learn more about the recommendations by following this link.
MISMO invites mortgage professionals to join AI community of practice
MISMO, the real estate finance industry’s standards organization, announced it is inviting mortgage professionals to join a newly formed community of practice (CoP) focused on AI. MISMO President David Coleman said in a statement the purpose of putting together the CoP is so industry professionals can stay informed on the latest AI trends and advancements affecting the mortgage landscape and gather “to share knowledge, collaborate on potential industry use cases, and develop standards in this rapidly developing field.” The community’s initial focus will be on “creating a shared vocabulary through a glossary of AI terms that are applicable to the mortgage industry,” he said.
Topics of discussion will include frameworks, best practices, risk mitigation, and industry events. The AI CoP will conduct regular meetings via conference call. Individuals interested in participating who are already MISMO members may join the collaboration site that has been established on MISMO Connect. Non-MISMO members interested in participating should send an email to [email protected]. Learn more here.
ICBA advocates for shadow-banking legislation
The Independent Community Bankers of America (ICBA) wrote to senators, urging them to co-sponsor legislation that would permanently close a “loophole” used by bank holding companies that purchase industrial loan companies (ILC). The Close the Shadow Banking Loophole Act (S. 3538), introduced by Senate Banking Committee Chairman Sen. Sherrod Brown (D-Ohio) and Sen. John Kennedy (R-La.), would require Federal Reserve supervision for companies that acquire an ILC. The trade group noted the Federal Deposit Insurance Corp. (FDIC) recently approved the application of a new ILC headquartered in Utah called Thrivent Bank. ICBA expressed its opposition to the new ILC’s formation. Additionally, ICBA pointed to its white paper detailing how ILC charters have evolved in a way that allows parent companies to get around regulatory oversight and violate U.S. policy separating banking and commerce. The letter and white paper can be found on the ICBA website.
ACU president backs bill with CDP, WOCCU funding
America’s Credit Unions (ACU) President and CEO Jim Nussle wrote to Speaker of the House Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.) and members of the House of Representatives to advocate for a FY2025 $50 million funding level for the U.S. Agency for International Development’s (USAID) Cooperative Development Program (CDP). This would be in addition to CDP funding allocated to support the efforts of the World Council of Credit Unions’ (WOCCU). In his letter advocating for floor consideration for the Fiscal Year 2025 State, Foreign Operations, and Related Programs bill, Nussle highlighted credit unions’ historic role in responding to disaster and crisis situations, asserting that “credit unions become a source of community stability as people come together to see that their families are fed.” Read more about the legislation here.