WASHINGTON—The CEO of MIT Federal Credit Union, Brian Ducharme, will detail credit unions' concerns about the NCUA's risk-based capital rule (RBC) and comment on other legislation consequential to credit unions during a House Financial Services subcommittee hearing Thursday.
Ducharme will be testifying on behalf of NAFCU.
During the hearing, Ducharme will provide members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit with his and NAFCU's assessment of five bills that aim to provide regulatory relief to credit unions and other financial institutions. The hearing begins at 2 p.m. ET Thursday.
As CUToday.info reported here, one bill being considered would repeal the NCUA's risk-based capital rule, which is set to go into effect Jan. 1, 2019.
NAFCU noted that over the past three years it has consistently opposed the NCUA's RBC rulemaking and urged its withdrawal, arguing it will lead to adverse effects on the credit unions due to regulatory burdens and costs. NCUA Chairman J. Mark McWatters has indicated that revisiting the rulemaking is on his list of priorities.
NAFCU has said it believes legislative changes are necessary to bring about comprehensive capital reform for credit unions, including allowing credit unions to have access to supplemental capital sources and making statutory changes needed to design a true risk-based capital system for credit unions.
The subcommittee will also hear testimony on the following:
- Mortgage Fairness Act of 2017 (HR 2570), which would amend the Truth in Lending Act to clarify points and fees of a mortgage loan do not include other compensation amounts that are already taken into account when setting the loan's interest rate
- Transparency and Accountability for Business Standards Act (HR 3179), which would require federal banking agencies to publish their reasoning and cost-benefit analysis when issuing stringent regulations
- Business of Insurance Regulatory Reform Act of 2017 (HR 3746), which would exempt persons regulated by a state insurance regulator from CFPB authority
- Comprehensive Regulatory Review Act of 2017, which would require federal financial regulators to review regulations and identify those that are outdated or otherwise unnecessary