WASHINGTON--The Defense Credit Union Council on Monday provided comments to the Consumer Financial Protection Bureau regarding the agency’s proposed amendments to the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B.
DCUC highlighted key areas of support, including disparate impact claims, discouragement provisions, and special purpose credit programs.
“Credit unions are deeply committed to fair and inclusive lending, particularly in support of our military members and their families,” reminded Jason Stverak, DCUC chief advocacy officer. “We appreciate the CFPB’s efforts to streamline regulatory requirements and provide clear guidance that allows credit unions to innovate and serve their members effectively.”
DCUC also provided comments regarding the agency’s proposed revisions to the Small Business Lending Rule under the Equal Credit Opportunity Act (ECOA), specifically Section 1071 of the Dodd-Frank Act.
DCUC expressed support for the CFPB’s efforts to streamline the rule, reduce complexity for lenders, and improve data quality. DCUC also reiterated its longstanding position that credit unions should be exempt from Section 1071 reporting requirements due to their unique lending models and member business lending caps, which limit the usefulness of such data and impose unnecessary regulatory burdens.
Key points in DCUC’s comments include support for narrowed scope, increased coverage threshold, reduction of data collection, and extended compliance timelines.
“Credit unions play a critical role in serving military communities, and regulatory requirements must reflect their unique structure and capabilities,” said Stverak. “We appreciate the CFPB’s efforts to reconsider and refine Section 1071 regulations, and we urge the agency to exempt credit unions or, at minimum, adopt changes that reduce unnecessary burdens while preserving the rule’s intent.”
DCUC added that it remains committed to working with the CFPB to ensure regulatory frameworks support credit unions’ ability to serve their members effectively.
Also Monday
DCUC engaged multiple congressional committees on several key issues under consideration affecting credit unions nationwide:
DCUC Calls for Fair Access to Banking, Highlights Harm of Debanking
DCUC sent a letter to Senate Banking Subcommittee on Financial Institutions and Consumer Protection Chairman Thom Tillis and Ranking Member Catherine Cortez Masto ahead of the hearing “Ensuring Fair Access to Banking: Policy Levers and Legislative Solutions,” raising concerns about the harmful practice of debanking and its impact on military communities.
“Debanking threatens the financial stability of the very people we are committed to serve, veterans, military families, and small businesses,” said Stverak. “Unlike large banks driven by profit models, credit unions are community-focused and work closely with members to provide fair, personalized banking services.”
DCUC urged Congress to expand credit union field-of-membership rules to improve access in underserved areas and banking deserts.
"Expanding credit unions’ ability to serve ‘banking deserts’ and vulnerable communities is an immediate, commonsense step to restore financial access where it has been unjustly denied,” Stverak added.
DCUC also expressed strong support for efforts to prevent politicized debanking.
“Credit unions stand ready to be financial first responders when communities are left behind,” said Anthony Hernandez, DCUC president/CEO. “We look forward to working with lawmakers to guarantee free and fair banking for all Americans.”
DCUC Voices Strong Support For Bipartisan Housing For The 21st Century Act
Separately, DCUC expressed its support for the bipartisan Housing for the 21st Century Act, praising its focus on housing supply, affordability, and protections for veterans and vulnerable households. DCUC also urged Congress to build on the bill’s momentum by modernizing credit union lending caps, expanding access to federal housing programs, streamlining VA home loans, and incentivizing affordable housing development.
“Stable, affordable housing is foundational to the financial well-being of those who serve our nation and critical to military readiness,” said Hernandez.
DCUC Submits Letter To HFSC Ahead Of Full Committee MarkupDCUC provided formal input to House Financial Services Committee leadership ahead of the Committee’s markup Tuesday and Wednesday, outlining priorities including field-of-membership modernization, veterans member business lending parity, and permanent access to the Central Liquidity Facility.