WASHINGTON—The House Financial Services Committee has passed HR 5982, the Financial CHOICE Act. It now goes on to the full House for consideration.
The Financial CHOICE Act, drafted by committee Chairman Jeb Hensarling (R-TX), includes a repeal of the Durbin amendment and would also provide relief for well-capitalized institutions from certain regulatory restrictions imposed by functional regulators.
The Choice Act also includes language to expand the NCUA board from three to five members, subject the NCUA budget to congressional appropriations approval, establish a Credit Union Advisory Council at NCUA, require annual budget hearings for NCUA, provide greater transparency on the overhead transfer rate, and require 18-month examination cycles for well-run credit unions with under $1 billion in assets.
Passage of the bill is being lauded by the CU trade groups.
“This legislation includes valuable provisions for the state credit union system, many of which NASCUS has long advocated,” said NASCUS CEO Lucy Ito. “Among them: Increasing the transparency of the overhead transfer rate, extending the exam period for some credit unions to 18 months and increasing the membership of the NCUA Board to five members from its current three – which NASCUS has recommended for the past 20 years. While increasing the board membership would enhance the board’s deliberative process, expand its collective expertise, and improve the efficient administration of agency business, NASCUS also urges lawmakers to consider further amending the legislation going forward to designate one of the seats on the board for a candidate who has served as a state credit union supervisor.”
NAFCU had earlier issued a statement indicating it strongly supports the Durbin repeal provision and a number of regulatory relief provisions in the bill.
CUNA on Monday sent a letter to the Committee supporting the bill.
CUNA president and CEO Jim Nussle wrote that the trade association appreciates the Committee's "efforts to bring meaningful regulatory relief for the country’s financial institutions, including credit unions. Credit unions recognize that they operate in a highly regulated industry and must bear the reasonable costs of regulation. However, unnecessary, overly burdensome, and duplicative regulations mean that credit union members are not able to fully access the high-quality, affordable and safe financial services that credit unions provide. It also means that resources credit unions would otherwise apply to more fully serving their members are spent instead on compliance, and in 2014, the total financial impact of regulations and lost revenue on credit unions was $7.2 billion. Your legislation would help to relieve some of the regulatory burdens that credit unions currently face so that they can better serve their members."
The complete letter can be found in CUToday.info's The gov.
The Independent Community Bankers of America (ICBA) also praised the vote on the bill.
“ICBA congratulates the House Financial Services Committee for advancing the Financial CHOICE Act. Chairman Jeb Hensarling’s bill is an important source of meaningful regulatory relief that will help community banks foster economic and job growth in their local communities,” said President and CEO Camden R. Fine