WASHINGTON–The House Financial Services Committee held a mark-up of numerous bills related to credit unions yesterday.
The bills included, along with NAFCU’s feedback and input:
H.R. 123, Alternative Data for Additional Credit FHA Pilot Program Reauthorization Act
NAFCU’s Brad Thaler shared the association's support of H.R. 123, which would allow the Department of Housing and Urban Development to implement a pilot program expanding underwriting to include qualified consumers who lack traditional credit scoring. "Our member credit unions have long advocated for the use of alternative models that accurately acknowledge creditworthy borrowers and permit affordable credit access," he noted.
H.R. 4067, Financial Inclusion in Banking Act of 2019
Thaler thanked the committee for its "ongoing efforts to promote diversity and inclusion in financial services," including H.R. 4067, which seeks to increase financial inclusion to underserved communities by "directing best practices industry-wide that would bring consumers into the traditional banking system and steer them away from predatory actors in the marketplace."
H.R. 4328, Protecting Innocent Consumers Affected by a Shutdown Act
Thaler said NAFCU’s supports the goals H.R. 4328 sets out to achieve, but it also has concerns over the bill's implementation, specifically its proposed reporting agency joint database.
"NAFCU would urge the Committee to ensure that the database is accessible and functional for financial institutions of all sizes, and that the use of the database does not present a financial burden for credit unions who are striving to provide needed relief to their members," wrote Thaler. "We would also encourage the Committee to work closely with regulators on clarifying any ambiguity to the necessary communications between the financial institution, the consumer reporting agency, and the consumer.
"Leading up to the 2018-2019 government shutdown, NAFCU contacted our members to notify them of the possible hardships their communities may face," Thaler continued. "The response was immediate, including credit unions offering zero-percent interest short-term loans, waiving fees for services, and the suppression of negative credit reporting."