WASHINGTON—The House has passed bipartisan legislation designed to ease examination requirements for certain credit unions, drawing praise from both America's Credit Unions and Defense Credit Union Council, which said the measure would reduce regulatory burden while preserving safety and soundness standards.
Passed by voice vote, the Supervisory Modifications for Appropriate Risk-Based Testing (SMART) Act (H.R. 4437), sponsored by Reps. William Timmons and Bill Foster, would provide well-managed, well-capitalized credit unions with supervisory relief through combined safety and soundness and consumer compliance examinations, while also allowing for limited-scope, off-site examinations in alternate years.
“We thank Representatives Timmons and Foster for providing well-managed and well-capitalized credit unions with relief through the SMART Act. By reducing examination burdens for certain credit unions, this relief would allow credit unions to dedicate more time to what they do best: investing in the financial futures of their members and communities. With bipartisan support for this legislation in the House, we urge senators to follow suit with swift passage,” said Kathleen Coulombe, chief advocacy officer at America’s Credit Unions.
DCUC applauded the bill’s passage and advancing bipartisan regulatory relief that recognizes the strong performance and sound oversight of well-managed credit unions.
“For defense credit unions serving military communities around the world, regulatory efficiency matters. Allowing qualifying institutions to utilize combined examinations and limited-scope off-site reviews will help reduce unnecessary compliance burdens while preserving safety and soundness standards,” said Jason Stverak, DCUC chief advocacy officer.
Stverak pointed out credit unions serving servicemembers, veterans, and their families already operate in highly regulated environments while managing unique operational demands tied to deployments, relocations, and financial readiness support.
“Modernizing the examination process for well-capitalized and well-managed institutions allows credit unions to dedicate more resources toward member service, financial counseling, cybersecurity investments, and affordable lending options instead of duplicative administrative processes,” Stverak said.
DCUC noted it has consistently supported efforts to modernize and right-size regulations for credit unions while ensuring parity across the financial services sector, including in recent letters to Congress and regulators emphasizing smarter supervision and reduced burden on community-based financial institutions.
“Congress has an opportunity to continue building a more modern and effective regulatory framework for credit unions,” Stverak said. “DCUC urges the Senate to move swiftly on the SMART Act and continue advancing bipartisan reforms that strengthen financial institutions serving military families and underserved communities nationwide.”