WASHINGTON—The Senate Wednesday evening passed S 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act.
The legislation is intended to reduce the regulatory burden on community banks and credit unions and improve their current operating environment.
“We thank the Senators who put party politics aside to support a bill that will greatly benefit credit unions and the 110 million members they serve,” said CUNA President/CEO Jim Nussle. “We’re grateful to see both sides come together to pass a meaningful piece of regulatory reform legislation, and CUNA will continue its strong engagement to momentum and see the bill move through the House.”
Key provisions for credit unions in the bill:
· Classify credit union one-to-four unit, non-owner occupied residential property loans as real estate loans, freeing up credit unions to lend to more small businesses, which CUNA believes would make up to $4 billion in additional capital available
· Treat loans held in portfolio by certain lenders as Qualified Mortgages
· Raise Home Mortgage Disclosure Act reporting thresholds to 500 closed-end and open-end loans in calendar year
· Apply the same consumer protections in place for mortgage lending to Property Assessed Clean Energy (PACE) loans
· Remove the three-day wait period required under the Truth in Lending Act Real Estate Settlement Procedures Act
· Provide legal immunity for properly trained, good-faith reporters of suspected financial elder abuse
· Require the Treasury to conduct a study on the risks that cyberthreats might pose to financial institutions
"This sets up an opportunity for the Senate to demonstrate that it can work together to pass legislation in a bipartisan way and we hope the House will quickly follow suit," said Nussle.
NAFCU's Dan Berger added, "The Senate's passage of this bill is a great first step, as one of the greatest challenges facing the credit union industry is unnecessary, burdensome regulation. NAFCU and our members sincerely thank [Senate Banking Committee] Chairman [Mike] Crapo and his Democratic colleagues for crafting bipartisan legislation to address this worrisome trend, and the senators on both sides of the aisle who voted in favor of it. Americans deserve access to safe, affordable financial products, and this legislation would help create a regulatory environment in which credit unions can more easily deliver those services to their 111 million members."