Credit union trade associations are praising the House Financial Services Committee after a two-day mark-up that resulted in the committee passing eight regulatory relief bills, which will now move on for consideration by the full House of Representatives.
These bills came after a mark-up that addressed improving the Home Mortgage Disclosure Act, limiting regulatory burdens on affected institutions and raising the CFPB supervision and examination threshold from $10 billion to $50 billion.
“We thank the committee for passing bipartisan regulatory relief that will help credit unions better serve their members,” Jim Nussle, president and CEO of the Credit Union National Association, said in a press release. “These bills are a step toward removing barriers that keep consumers from more affordable mortgages and other products.”
CUNA hopes to move the “bills across the finish line” as the association continues to lobby the Senate and House.
"We thank Chairman [Jeb] Hensarling and the committee for recognizing the regulatory burden facing today's credit unions and for advancing legislation that would provide some regulatory relief," Dan Berger, NAFCU president and CEO, said in a press release. "We are pleased to see a number of these bills get bipartisan support and look forward to continuing to work with lawmakers as these bills now await House action."
The bills passed by the committee include:
• H.R. 1116, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act (passed 39-21), that aims to “reduce regulatory burden for financial institutions with lower risk profiles relative to systematically significant institutions by requiring financial regulators to take risk into account when promulgating regulations;”
• H.R. 2706, the Financial Institution Consumer Protection Act of 2017 (passed 59-1), that aims to “impose certain limits on the federal government's Operation Choke Point, by limiting federal bank regulators' ability to discourage or restrict depository institutions from entering into or maintaining a financial services relationship with specific customers unless certain criteria are met;”
• H.R. 2954, the Home Mortgage Disclosure Adjustment Act (passed 36-24), that aims to “provide much needed relief, particularly to smaller credit unions, by raising the threshold that triggers Home Mortgage Disclosure Act reporting requirements to 1,000 closed-end and 2,000 open-end mortgages;”
• H.R. 3072, the Bureau of Consumer Financial Protection Examination and Reporting Threshold Act of 2017 (passed 39-21), that aims to “increase the threshold figure at which credit unions and banks are subject to direct examination and reporting requirements of the Consumer Financial Protection Bureau from $10 billion to $50 billion;”
• H.R. 3758, the Senior Safe act of 2017 (passed 60-0), that aims to “represent an important step toward improving the ability of credit unions to protect seniors from unscrupulous activity by providing legal immunity for properly trained financial services employees who disclose concerns about financial exploitation of senior citizens;”
• H.R. 3857, the Protecting Advice for Small Savers Act of 2017 (passed 34-26), that aims to “repeal the [Department of Labor's] fiduciary rule and preempt state law avoiding a patchwork of standards;” and
• H.R. 3971, the Community Institution Mortgage Relief Act of 2017 (passed 41-19), that aims to “make important changes to both the Truth In Lending Act (TILA) and the Real Estate Settlements Procedures Act (RESPA) to reduce the burden on small financial institutions. The proposal would exempt mortgage loans made by financial institutions under $25 billion in assets from TILA's escrow requirements; and, the legislation would also exempt mortgage servicers that service fewer than 30,000 mortgages annually from the requirements of Section 6 of RESPA."