WASHINGTON—The House Financial Services Committee advanced two bills out of its markup this week related to minority depository institutions (MDIs).
Both bills have support from the credit union trade groups.
In a letter sent to the committee ahead of its markup, NAFCU Vice President of Legislative Affairs Brad Thaler said the two bills – the Expanding Opportunity for MDIs Act (H.R. 5315) and the Ensuring Diversity in Community Banking Act (H.R. 5322) – would "help MDIs grow and thrive" as they would establish MDI advisory committees, require regulators to submit annual reports to Congress on diversity, and foster mentorship of MDIs. The bills were passed unanimously.
CUNA, as well, said it backs the legislation.
“Minority depository institution (MDI) credit unions represent an important way in which credit unions are fulfilling their mission by advancing financial inclusion and well-being for minority and underserved communities,” CUNA said to the committee ahead of its markup. “Today, MDI credit unions represent approximately 10% of all credit unions and serve approximately 3.9 million members (representing 3% of all credit union members).”
What Bills Would Do
Specifically, the bills would:
- H.R. 5315: Codify the Treasury Department’s mentor protégé program to encourage collaboration between Minority Depository Institutions and large financial institutions.
- H.R. 5322: Encourage federal government deposits in MDIs, establish a Small Business Administration task force focused on MDIs and CDFIs, and require diversity and inclusion reports from each prudential regulator.
In addition, the committee advanced on a party-line vote the Protecting Your Credit Score Act (H.R. 5332), which would create a single online portal for consumers to access and manage their credit reports. Another bill related to the ability-to-repay/qualified mortgage standard, was removed from the markup. Other legislation advanced by the committee were related to cybersecurity and student borrower issues.