RVIA Economic Impact Study

The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.

Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .

RV News Exclusive: Banking Associations Argue Against CFPB

Mon Dec 19, 2016

In a letter to Senate leaders earlier this month, the heads of four banking industry associations argued that the Consumer Financial Protection Bureau should be led by a bipartisan commission, rather than an individual director. The push comes months after an appeals court held that the current structure gives the CFPB director too much power.

The leadership structure of one of the more controversial federal government agencies, launched during the Obama administration, could change significantly after President-elect Donald Trump takes office.

Among those pushing for changes to the Consumer Financial Protection Bureau (CFPB) is a group of banking associations. On Wednesday, a coalition of trade groups sent a letter to Senate leaders calling for a governance restructuring that it says would boost accountability. The approach would implement a bipartisan commission of appointed officials, like the one that governs the Federal Communications Commission.

“The current single-director structure leads to regulatory uncertainty for consumers, industry and the economy,” according to the letter signed by presidents of the Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America and the National Association of Federal Credit Unions. “In contrast, a Senate-confirmed, bipartisan board or commission will provide a balanced and deliberative approach to supervision, regulation and enforcement over financial institutions that is more in keeping with other financial regulators.”

In October, a judge in the federal appeals court ruled the new consumer-finance watchdog as unconstitutional and ordered its powers be curbed. The unconstitutionality of the organization posed a large setback to the Obama administration’s efforts to get the regulation approved, but changes have been suggested to allow for some degree of regulation while remaining within the confines of the constitution.

One of the ways the CFPB was suggesting its dealers finance for the purchase of automobiles, recreational vehicles and other related transportation vehicles was eliminating the competitive pricing and interest rates for consumers and suggesting a flat rate regardless of the person or vehicle. The Bureau’s reasoning was that the policy is based on claims that discounted interest rates create a fair credit risk.

“Basically, they’re (the CFPB) moving toward a kind of flat fee system,” RVDA President Phil Ingrassia said about the CFPB bill when it was moving through the Senate. “It was guidance, and in most cases, the lenders have not adopted the guidance. But it still exists and it has created some uncertainty in the market. We want it repealed and re-issued in a more normal process.

“In a nutshell, we think the dealer-arranged financing works just fine right now. All you have to do is look at the results. We’ve had record years. Financing has receded as a barrier and we want to keep the options for consumers and working with a dealer to get financing. There’s many unintended consequences that could happen if they (the CFPB) get this pushed through.”

A governing commission has been suggested after it was deemed unconstitutional because it gives too much power to a single individual.

The plan to restructure was included by House Republicans, but the Senate version did not include the changes. According to an article by Associations Now, a news service focused on money and business transactions, the proposal remains unconstitutional. Senate Minority Leader Chuck Schumer has been quoted as saying that he is unwilling to consider governance changes to the CFPB.

To read the letter, click on the link below.

Additional Information: http://consumerbankers.com/sites/default/files/Commission115CongressLetter.pdf