WASHINGTON–President Trump has signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (S 2155), the package of regulatory relief measures that had the support of both banks and credit unions. The signing comes at the same time the trade groups say they are seeking to get additional reg relief through Congress in this session.
Not surprisingly, both CUNA and NAFCU praised the signing of the bill.
“President Trump’s signature on S 2155 brings a successful end to one of the most comprehensive, historic advocacy efforts the credit union system has seen in quite some time. From the moment the text of the bill was released by a group of bipartisan senators, credit unions made their voices heard wherever possible, resulting in significant regulatory relief for credit unions and 110 million Americans,” said CUNA President/CEO Jim Nussle in a statement.
Added NAFCU CEO Dan Berger, "NAFCU and our members again appreciate all House and Senate lawmakers who worked on this bill and pushed it through to final passage – especially [Senate Banking Committee] Chairman [Mike] Crapo and [House Financial Services Committee] Chairman [Jeb] Hensarling. We appreciate President Trump signing the bill, as we can now look towards the future and continue to work with Congress on further regulatory relief measures to ensure robust growth of the credit union industry."
The bankers also praised the bill.
“This landmark law signed by the president…unravels many of the suffocating regulatory burdens our nation’s community banks face and puts community banks in a much better position to unleash their full economic potential to the benefit of their customers and communities,” ICBA President and CEO Rebeca Romero Rainey said.
What the Bill Does
For credit unions, the reg relief bill:
- Establishes a safe harbor from certain requirements for a loan to be considered a Qualified Mortgage
- Rescinds the additional data points required under the Home Mortgage Disclosure Act for insured credit unions that originate fewer than 500 closed-end and/or 500 open-end lines of credit
- Reclassifies one-to-four unit, non-owner occupied residential loans as real estate loans, so the loan would not count against the member business lending cap
- Clarifies that the same consumer protections in place with respect to mortgage lending are nonexistent for Property Assessed Clean Energy loans
- Removes the three-day wait period required for the combined TRID mortgage disclosure if a creditor extends to a consumer a second offer of credit with a lower annual percentage rate
- Requires NCUA to make publicly available a draft of their proposed budget, hold a hearing with public notice during which this draft would be discussed and solicit and consider public comment about the draft budget
- Provides a safe harbor for properly trained financial employees who report alleged elder financial abuse
- Requires the U.S. Department of Treasury to conduct a study on the risks that cyber threats may pose to financial institutions
NAFCU said it is now moving “forward on a number of other top legislative items still pending before Congress, including risk-based capital reform, data and cybersecurity standards, field of membership reforms, and lawsuit abuse under the Americans with Disabilities Act.”