ALEXANDRIA, Va.—NAFCU Tuesday, in advance of today’s full committee mark-up on legislation that could provide regulatory relief to credit unions, sent a letter to the House Financial Services Committee outlining the trade association’s strong support for the Risk-Based Capital Study Act (H.R. 2769), among other bills up for review.
NAFCU Vice President of Legislative Affairs Brad Thaler's letter to Committee Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.) also expressed the trade association’s support for the Financial Product Safety Commission Act (H.R. 1266); and the Bureau of Consumer Financial Protection-Inspector General Reform Act (H.R. 957).
Regarding H.R. 2769, Thaler wrote, "NAFCU believes there are several issues related to NCUA’s legal authority to issue the rule as proposed, including, the ability to prescribe separate risk-based capital thresholds for well-capitalized and adequately capitalized credit unions.”
For this reason, among others, Thaler noted NAFCU's support for the bipartisan Risk-Based Capital Study Act. It would stop NCUA from moving forward with their second risk-based capital proposal until completing and delivering to Congress a thorough study addressing NCUA's legal authority, the proposal's impact on credit union lending and capital requirements for credit unions compared to other financial institutions. The agency would not be able to finalize or implement the proposal before 120 days after the report goes to Congress.
Thaler also encouraged support for H.R. 1266, which would replace the CFPB director post with a bipartisan commission and H.R. 957, which would transfer authority to appoint a CFPB inspector general from the Federal Reserve to the president. He noted that H.R. 1266 represents a shift back to the leadership structure originally proposed for the agency and that a bipartisan commission could help address the issue of streamlining the issuance of new rules. In terms of H.R. 957, Thaler wrote that establishing an independent inspector general for the CFPB is consistent with the operations of other federal financial regulators.