WASHINGTON–Three bills of strong interest to credit unions are on the agenda for markup by the House Financial Services Committee, one of which “poses a costly threat to the credit union industry,” according to NAFCU.
Set for markup are HR 7003, the “Expanding Financial Access for Underserved Communities Act,” and HR 5912, the “Close the ILC Loophole Act,” both of which have credit union-backing.
Opposed by credit unions is HR 7022, the Strengthening Cyber-Security for the Financial Sector Act of 2022, recently introduced by Rep. Bill Foster (D-IL) and which would give both the Federal Housing Finance Agency and the NCUA additional third-party vendor examination authority.
The markup comes less than a week after NCUA Director of Office of Examination and Insurance Kelly Lay again called on Congress to give NCUA such authority.
After earlier sending a letter in opposition to the bill, NAFCU VP-Legislative Affairs Bill Thaler told CUToday.info, “From our perspective we remain opposed. We still think there are a lot of questions NCUA has not answered in terms of budgetary impact and costs and what fit will look like. We’ve been raising this issue with lawmakers.
Another Question
“I think NCUA still has a lot more information it needs to provide before this could be enacted into law,” Thaler continued. “It’s hard to say what will happen with the markup. It may advance. Another question is, are there other ways that this could be done? NCUA a is member of the (Federal Financial Institutions Examinations Council, which has third-party oversight authority). There are ways they could change so NCUA has better access to the reports that are out there already. Is that potentially a less-expensive approach than creating this whole new office at NCUA that would ultimately take money from credit unions and credit union members.”
As CUToday.info has reported, for any of the bills to move forward in this Congress will likely require them to be attached to larger, must-pass legislation.
The Three Bills
Here is the NAFCU analysis of the other two bills.
- H.R. 7003, the “Expanding Financial Access for Underserved Communities Act”
The bill, introduced by HFSC Chairwoman Maxine Waters, would allow credit unions to add underserved areas to their field of memberships and in turn combat banking deserts, formed as a result of banks closing up branches, especially during COVID. NAFCU has supported this bill, “even in light of banker groups’ selfish and unwarranted opposition, which would help communities suffering negative economic consequences from banking deserts,” the trade group said.
- H.R. 5912, the "Close the ILC Loophole Act”
NAFCU noted it has long urged Congress to close the industrial loan company (ILC) loophole, which grants a special exemption under federal law that permits other organizations to control a full-service FDIC-insured bank without being subject to the same regulatory oversight as other financial institutions. That would close the ILC loophole and ensure a level playing field for all financial institutions, the trade group added.