WASHINGTON—NAFCU's legislative affairs team met with House leaders to discuss credit union regulatory relief measures related to the Economic Growth, Regulatory Relief and Consumer Protection Act (S 2155) as the bill approaches the finish line in the Senate.
Once the Senate passes S 2155, the bill heads to the House for consideration. The House Financial Services Committee has taken a broader approach to regulatory relief and is expected to include additional provisions in the measure before the House passes the bill, NAFCU noted.
The legislation includes regulatory relief measures related to member business lending (MBL) and the Home Mortgage Disclosure Act (HMDA) that would positively impact the credit union industry. NAFCU lobbyists continue to advocate for the inclusion of even more credit union regulatory relief provisions.
The Senate is working through a series of procedural votes early this week that should lead to the final debate and passage of S 2155 before the end of the week, NAFCU said.
The bill’s provisions include:
- The Credit Union Residential Loan Parity Act, which would allow credit unions to treat loans for one-to-four-unit, non-owner-occupied dwellings that qualify for the MBL exemption as residential loans with lower interest rates – similar to how banks make these loans to small businesses
- A provision to provide a safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio
- Language that would provide certain credit unions relief from new HMDA reporting requirements
Separately, NAFCU's Regulatory Committee met to discuss possible reforms to the NCUA's risk-based capital (RBC) rule, the CFPB's final rule amending its mortgage servicing rule and the latest on the Senate regulatory relief bill (S 2155).
The meeting also included an update on various information requests the CFPB has published to obtain public feedback on how to improve the Bureau's functions and outcomes for consumers and the entities it regulates.
The RBC rule is currently set to go into effect Jan. 1, 2019. Over the past three years, NAFCU said it has consistently opposed this rulemaking and urged NCUA to withdraw it because of the adverse effects it would have on the credit union industry – particularly as a result of regulatory burdens and costs. A recent Economic & CU Monitor survey revealed that three-fifths of credit union respondents did not believe the rule will increase the overall safety of the National Credit Union Share Insurance Fund (NCUSIF) as the NCUA has argued.
NCUA Chairman J. Mark McWatters has indicated his willingness to review and revise the rule. NAFCU has also been active on Capitol Hill to urge lawmakers' support of the Common Sense Credit Union Capital Relief Act of 2017 (HR 4464), which would repeal the rule. The bill moved out of committee in December and is awaiting action by the full House.
NAFCU’s Regulatory Committee also reviewed the final rule put forth by the CFPB last week aimed to help mortgage servicers communicate with certain borrowers facing bankruptcy. This final rule gives mortgage servicers more leeway in providing statements to consumers entering or exiting bankruptcy.
NAFCU's Regulatory Committee will meet again April 10.