WASHINGTON–The Senate has voted in favor of proceeding on S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, which has been the subject of heavy lobbying by both credit unions and banks. Both credit union trade groups are now urging their member credit unions to contact their respective senators as the bill heads to the Senate floor.
While strongly supported by credit unions, the bill remains the subject of criticism by many, including consumer groups, that it is a pro-Wall Street bill that guts much of the Dodd Frank provisions put in place a decade ago.
CUNA President Jim Nussle issued a statement that says that is not the case.
“CUNA, leagues and credit unions have been advocating for common-sense regulation for over a year and today's crucial vote in the Senate means we're one step closer to relief for Main Street," said Nussle in a statement. "Our voices helped get this bill to the floor, and now it's time for Congress to fight for the 110 million Americans who depend on their credit union. S.2155 is bipartisan legislation that will protect seniors from elder abuse, make mortgage processing easier and quicker, increase affordable rental housing in our communities and help credit unions provide better service to their members, common-sense solutions that will benefit consumers.”
Nussle noted S. 2155 contains a credit union-specific provision to reclassify certain types of real estate loans, freeing up to as much as $4 billion in capital that credit unions could lend to business members. It also offers mortgage relief by treating loans held in portfolios by certain lenders as Qualified Mortgages, while raising Home Mortgage Disclosure Act (HMDA) reporting thresholds. It also allows more efficient disclosures of available discounts from lenders to potential homebuyers, CUNA said.
NAFCU's Executive Vice President of Government Affairs and General Counsel Carrie Hunt, meanwhile, sent a letter to Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Chuck Schumer (D-NY) expressing support for S. 2155. The letter describes key components of the bill that would positively impact the credit union industry and says that anyone in support of this legislation is in support of credit unions.
"Regulatory burden is the top challenge facing credit unions today. Reducing burdensome and unnecessary regulatory compliance costs is the only way for credit unions to thrive and continue to provide their member-owners with basic financial services and the exemplary service they need and deserve," said Hunt. "NAFCU believes that credit unions must have a positive regulatory environment that allows them to succeed.