WASHINGTON–Strong credit union support is being expressed for the Economic Growth, Regulatory Relief and Consumer Protection Act, which was introduced in the Senate Banking Committee last week.
The legislation includes numerous provisions that credit unions and their trade groups have been calling for for a number of years.
The bipartisan legislation, the text of which can be found here, is part of a crowded agenda in Congress. The House and Senate are in recess this week, and when they return next week they will have 15 legislative days to complete their work before the session ends.
“We’re thrilled about this legislation,” said CUNA’s Chief Advocacy Officer Ryan Donovan. “It is completely in line for our Campaign for Common Sense Regulation. When members of congress come together like this, it shows how congress ought to work for the American people, consumers, and certainly for credit unions.”
Among the provisions that Donovan said will benefit both credit unions and small banks are:
- Section 105, which would exempt one-four family, non-owner occupied homes from the member business lending cap, a move he said CUNA estimates will “free up” as much as $4 billion for additional lending to members
- Several provisions that provide relief from Dodd Frank mortgage regulations, including section 101, which addresses the Qualified Mortgage rule for certain lenders that hold loans in portfolio. “Treating loans like this is appropriate, because with loans held in portfolio, often credit unions have unique knowledge of their members’ financial circumstances,” said Donovan, adding that “rigid adherence to one-size-fits-all” mortgage loans is denying some people the opportunity to own a home
- Provisions that would provide relief from various HMDA compliance rules that are very expensive for many CUs, especially smaller CUs
- Section 108 of the bill, which provides consumer protections to loans for solar energy, such as PACE loans
- Provisions providing for enactment of the Senior Safe Act, which provides a safe harbor for CU and bank employees who report instances of elder abuse
Donovan stressed on several occasions that critics of the proposed legislation are wrong about who it benefits.
“What you are going to hear form opponents of this bill is that this legislation is about Wall Street banks and undermining Dodd Frank,” said Donovan. “These two provisions don’t do a darned thing for those big banks and abusers of consumers.”
Section 501 of the proposed bill would also require Treasury to conduct a study on risks of cyber-threats to financial institutions.
“This bill not about large banks,” Donovan repeated. “There is not a provision in this bill to benefit a large bank. It’s about making sure a system rigged today against credit unions and smaller providers is made a little bit fairer.”
The Economic Growth, Regulatory Relief and Consumer Protection Act is set for mark-up on Dec. 5.