WASHINGTON—A half-dozen bills of interest to credit unions and currently before Congress will be in the spotlight during a hearing today by the House Financial Services Committee.
The hearing, “Examining Legislative Proposals to Preserve Consumer Choice and Financial Independence,” is scheduled to focus on legislation aimed at reducing the regulatory burden on credit unions.
Among the bills, which have support of the credit union trade groups, that are expected to be discussed at the hearing are:
- HR 2287, NCUA Budget Transparency Act. Introduced by Reps. Mick Mulvaney (R-SC) and Krysten Sinema (R-AZ), the legislation would direct the NCUA to establish a process by which various stakeholders could comment on the agency’s proposed annual budget prior to adoption. “This legislation would (also) ensure that members of the NCUA Board, who must vote to adopt the annual budget, have adequate opportunity to review specific expenditures and overall methodology in order to make an informed decision as to whether the budget as proposed accurately reflects the needs of the agency,” said CUNA in a comment letter to the agency.
- HR 2213, which would provide a temporary safe harbor from the enforcement of integrated disclosure requirements for mortgage loan transactions under the Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act. Introduced by Reps. Steve Pearce (R-NM) and Brad Sherman (R-CA), the bill which will provide a reasonable hold-harmless period through the end of the year following the Aug. 1 effective date of the CFPB’s TILA-RESPA Integrated Disclosures (TRID) regulation. The legislation has drawn a broad base of support.
- HR 1210, Portfolio Lending and Mortgage Access Act. Introduced by Rep. Andy Barr (R-KY), HR 1210 would treat mortgages held in portfolio at credit unions and other mortgage lenders as qualified mortgages for purposes of the Consumer Financial Protection Bureau’s (CFPB) mortgage lending rules. “Treating these loans as qualified mortgages is appropriate because the lender retains all of the risk involved with these mortgages and is subject to significant safety and soundness supervision from its prudential regulator,” said CUNA in its letter.
- HR 1266, Financial Product Safety Commission Act of 2015. Introduced by Committee Chair Randy Neugebauer, the bill would replace the CFPB executive director with a commission nominated by the president and confirmed by the Senate.
- HR 1941, Financial Institutions Examination Fairness and Reform Act. The bill, introduced by Lynn Westmoreland (R-GA) and Carolyn Maloney (D-NY), was described by CUNA as a “step in the right direction toward ensuring the federal financial institution regulators conduct fair exams for those they supervise consistent with the law and regulation and ensure safety and soundness. The legislation would make available to financial institutions the information used to make decisions in their examination; codify certain examination policy guidance; establish an Independent Examination Review Office at the Federal Financial Institution Examination Council (FFIEC) to which financial institutions could raise concerns with respect to their examination; and, establish an appeals process before an independent administrative law judge.”
- HR 766, Financial Institution Customer Protection Act of 2015. This legislation, from Rep. Blaine Luetkemeyer and Alcee Hastings (D-FL) would direct banks and credit unions to not participate in Operation Choke Point.