WASHINGTON–Three bills that have credit union support have moved forward in the House.
The House has passed legislation involving remote online notary services and the Community Development Financial Institutions (CDFI) Fund. In addition, a House committee has moved the Credit Union Board Modernization Act forward.
“We owe a big thank you to the House for passing these two bipartisan bills that will increase access to financial services,” said CUNA President/CEO Jim Nussle. “Allowing remote online notarization will help consumers continue to conduct important transactions despite COVID and other restrictions, while the CDFI legislation will open up a source of low-cost capital for smaller projects in rural, urban, and tribal areas.”
H.R. 3962 would authorize the use of remote online notarization and create national standards and protections for its use.
H.R. 7733 would modify and permanently legislation would reduce the minimum loan size for the program to $25 million (down from $100 million).
Board Modernization
Separatey, the House Financial Services Committee advanced the Credit Union Board Modernization Act (H.R. 6889) Wednesday. As CUToday.info reported earlier, Reps. Juan Vargas (D-CA) and Anthony Gonzalez (R-OH) introduced the bill during the CUNA’s GAC in March.
“Thank you to the House Financial Services Committee for passing this common-sense bipartisan bill that will give credit union boards needed flexibility,” said Nussle. “This bill addresses an outdated Federal Credit Union Act requirement and will free up credit union staff and board members to focus more on member service.”
The bill would allow boards of federally charted credit unions the flexibility to meet at minimum six times a year rather than the required 12 times a year.
Sens. Kyrsten Sinema (D-AZ), Bill Hagerty (R-TN), Alex Padilla, (D-CA) and Thom Tillis (R-NC), introduced the Senate version in May.
Letters Sent
Ahead of action on the legislation, NAFCU sent a letter to House Speaker Nancy Pelosi (D-CA) and House Republican Leader Kevin McCarthy (R-CA) regarding the House’s list of votes on the suspension calendarthis week, which is a way for the House to consider non-controversial legislation expeditiously.
NAFCU noted the list of suspension votes included the SECURE Notarization Act as well as the CDFI Bond Guarantee Program Improvement Act, which would permanently authorize the CDFI Bond Guarantee Program.
Credit unions support both pieces of legislation.
In the letter, Vice President of Legislative Affairs Brad Thaler detailed NAFCU’s reasoning for supporting the SECURE Notarization Act, as it will modernize long standing issues with processing legal documents, particularly with the COVID-19 pandemic.
“Physical distancing requirements in response to COVID-19 made the need for Remote Online Notarizations (RON) greater than ever,” wrote Thaler. “H.R.3963 would allow for the use of RON nationwide, which would have an immediate benefit, especially for our servicemembers who are often deployed or traveling.”
Increased Funding for CDLRF
In addition, Thaler addressed NAFCU’s supportfor the CDFI Bond Guarantee Improvement Act, as it will increase funding for both the CDFI Fund and the Community Development Revolving Loan Fund (CDRLF).
Also included on the calendar is the Promoting New and Diverse Depository Institutions Act, which would encourage regulators to focus on the formation of de novo credit unions, an issue that the association has previously worked on with Congress and the NCUA. Thaler said this legislation is a “step in the right direction.”
Thaler also encouraged the House to consider the Expanding Financial Services for Underserved Communities Act, which would allow credit unions to add underserved areas to their fields of membership, as another alternative for helping underserved communities.
CUNA Letters
Separately, CUNA also wrote letters to House leaders.
The House should pass remote online notarization and Community Development Financial Institutions (CDFI) improvement legislation, CUNA wrote.
Regarding the SECURE Act, CUNA wrote, “The COVID-19 pandemic complicated person-to-person contact and made it difficult, if not impossible in some cases, to secure in-person notary services. Some states have remote notarization laws in effect; other states’ governors issued temporary executive orders permitting remote notarization. However, given the fact that the pandemic has affected every state and county in the country and that many of the notary requirements emanate from Federal law, CUNA strongly believes it would be in the interest of public policy to have a federal law permitting remote online notarization.”
The bill unanimously passed the House Energy and Commerce Committee last week.
Support for CDFI Bill
Like NAFCU, CUNA also said it supports the CDFI Bond Guarantee Improvement Act. It would modify and permanently legislation would reduce the minimum loan size for the program to $25 million (down from $100 million).
“This legislation will provide certainty to both lenders and borrowers and ensure access to low-cost capital for smaller development projects in historically neglected areas in rural, urban, and tribal America,” CUNA’s letter reads.