WASHINGTON–Credit unions will be watching with interest several hearings on Capitol Hill this week having to do with regulatory burden, NCUA’s budget, and requirements that agencies take into account the operational risk of CUs when making new rules.
On Wednesday, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit will discuss “legislative proposals to reduce regulatory burdens on Main Street job creators,” which would under its broad umbrella include credit unions.
CUNA’s chief advocacy officer, Ryan Donovan, said the trade association this week will be watching activity around:
- HR 2473, the Preserving Capital Access and Mortgage Liquidity Act of 2015, sponsored by Re. William Lacy Clay (D-MO). That legislation would address a disparity in the FHLB’s membership rules that disadvantage credit unions, and would in the FHLB Act redefine "community financial institution" to include either a federal or state credit union.
- HR 2287, the National Credit Union Administration Budget Transparency Act, sponsored by Rep. Mick Mulvaney (R-SC). That bill would amend the Federal Credit Union Act to require the National Credit Union Administration Board, before the annual submission of its required detailed business-type budget, to: (1) print a draft of the budget in the Federal Register; (2) hold a public hearing to receive comments from the public on the draft; and (3) include in the required integral set of accounts statements in which the budget will address any of such comments.
- HR 2896, the Taking Account of Institutions with Low Operations Risk Act (TAILOR), sponsored by Rep. Scott Tipton (R-CO). That bill directs the OCC, Fed, FDIC, NCUA and CFPB to take into consideration the risk profile and business models of institutions subject to regulatory action; determine the necessity, appropriateness, and impact of applying that action to such institutions; and tailor regulatory action so as to limit the burden of regulatory compliance as befits the risk profile and business model involved.
In addition, on Wednesday the Small Business Committee will also hold a second hearing on the deployment of EMV and what it means to small businesses
In addition to closely watching HR 2287 and HR 2473 this week, NAFCU will monitor congressional hearings focused on EMV and housing reform, and will watch for any next steps in the Senate on the Cybersecurity Information Sharing Act (S. 754). The bill aims to bring greater security for financial data through faster, more efficient sharing of cyber-threat information among the business and government sectors.
The House Small Business Committee on Wednesday will hear from small-business owners on the challenges and implications of the EMV liability shift that took place Oct. 1. NAFCU witness Jan Roche gave the credit union perspective earlier this month.