WASHINGTON–A Senate Subcommittee has passed the Financial Services and General Government Appropriations Act for 2016, which seeks to provide regulatory relief, on a 12-10 vote along party lines.
It now goes before the full Senate Appropriations Committee for mark-up this morning.
Sponsored by Sen. Richard Shelby (R-AL), CUNA said the legislation has its backing as it contains a number of provisions it supports, including provisions to:
- Eliminate the requirement that credit unions send annual privacy notices unless the policy has changed.
- Allow privately insured credit unions to become members of the Federal Home Loan Bank system.
- Establish an application process to designate an area as “rural.”
- Allow an independent ombudsman to hear examination concerns.
- Treat mortgages held in portfolio as qualified mortgages.
- Remove an escrow for future insurance payments from the points and fees calculation.
- Allow the Consumer Financial Protection Bureau examination threshold of $10 billion to be adjusted for inflation.
- Call for a study on privacy risks of government publication of personal financial data.
- Direct federal banking agencies to conduct a study of appropriate capital requirements for mortgage servicing assets.
- Grant lenders a safe harbor until the CFPB can certify its Truth in Lending Act-Real Estate Settlement Procedures Act forms do not conflict with state law.
- Require CFPB advisory meetings to be open to the public.
- Require the National Credit Union Administration to hold public budget hearings.
- Ensure FHLB membership for credit unions with under $1 billion in assets will have parity with similar-sized banks.
- Ensure a comprehensive regulatory review to identify unnecessary or redundant regulations.