Credit unions saw another positive move towards tangible regulatory relief in Congress when the U.S. Senate Banking Committee passed S. 2155 on December 5th. This bill is the bipartisan regulatory reform package to make changes to Dodd-Frank provisions, something that was just announced on November 16th. For a section-by-section summary, please click here.
The bill is intended to provide positive changes for credit unions and small to mid-sized banks that have been under strict post-financial-crisis rules, with provisions to expand consumer access to mortgages, reduce regulations and create a safe harbor for those who report suspected elder abuse – but also limit credit report data collection. In addition, there is a provision in the current bill that would grant credit unions parity with banks by classifying residential loans on one- to four-unit, non-owner-occupied properties as real estate loans (and not business loans as they are today). Other provisions in the bill would raise the threshold for financial institutions that face annual stress tests and added regulations from $50 billion to $250 billion in assets, and make it a federal requirement to allow consumers to freeze and unfreeze their files with credit reporting companies (something already permitted in Georgia) and requiring free credit monitoring for military personnel.
With the bill passing the committee, it now awaits selection in the full Senate for a hopeful vote (not all bills that pass committee move to a vote on the Senate floor). However, being a bipartisan measure, it has a higher likelihood of being scheduled for a vote. Of note: One of the original supporters and co-sponsors of the bill is U.S. Senator David Perdue (R) from Georgia, and the other Senator from Georgia, U.S. Sen. Johnny Isakson (R), has shared with GCUA that he will sign onto the bill as of press time. Our thanks to all the credit unions who have consistently met with them and the rest of Georgia’s federal legislators to discuss the need for this precise type of regulatory relief. To send a message of thanks to the Senators for the bill, please click here to access CUNA’s nationwide Campaign for Common Sense Regulatory Relief.
Meanwhile, the House Financial Services Committee continues to take action on various changes to financial regulations. This week’s conglomeration of hearings concerned issues including housing finance, financial research, and a potential repeal of NCUA’s risk-based capital rule – however, any bill would still need to travel through the House floor process (before traveling to the Senate). One such bill already teed up for potential action on the House floor is the Community Institution Mortgage Relief Act of 2017 (H.R. 3971) that passed the committee in October. This bill would exempt mortgage loans made by small financial institutions from certain Truth in Lending Act and Real Estate Settlement Procedures Act requirements. With just one week left of the official work schedule for Congress, time is running short. However, all bills will continue on to 2018, along with the continued effort to procure regulatory relief for credit unions!
