WASHINGTON—A bipartisan group of Senate Banking Committee members has released a bill that includes credit union regulatory relief.
“This bill includes credit union-specific provisions that provide meaningful regulatory relief, a sign that policymakers are paying close attention to the needs of credit union members,” said CUNA President and CEO Jim Nussle about the legislation that has yet to formally receive a name or bill number. “We thank Sen. (Mike) Crapo and his colleagues for working across party lines to advance regulatory relief legislation that benefits community financial institutions, and look forward to continuing to work closely with them as the bill moves through the legislative process.”
"NAFCU thanks Chairman Crapo and his Democratic partners in the Senate for including provisions in this package that would lead to regulatory relief for credit unions," said NAFCU President and CEO Dan Berger. "We look forward to working with members of the Senate Banking Committee, their staff and other senators as this package moves through the legislative process. This bill is a step in the right direction, and we will continue to push for more relief for the industry and its 110 million member-owners."
The credit union provision would grant credit unions parity with banks by classifying residential loans on one-to-four non-owner occupied units as real estate loans, CUNA said.
The provisions in the regulatory relief package include:
- The Credit Union Residential Loan Parity Act, which would allow credit unions to treat loans that qualify for the MBL exemption as residential loans with lower interest rates – similar to how banks make these loans to small businesses.
- The Home Mortgage Disclosure Adjustment Act, which would exempt depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the previous two years from certain HMDA reporting and recordkeeping requirements.
Other provisions in Title I of the package would provide credit unions with regulatory relief from mortgage-related requirements, including allowing institutions with less than $10 billion in assets to retain originated mortgages in their portfolios and removing a wait period within the CFPB's TILA/RESPA integrated mortgage disclosure rule when certain conditions are met, NAFCU said,