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NAFCU supports legislation introduced Tuesday by Sen. Jerry Moran, R-Kan., which would provide regulatory relief for small financial institutions, including credit unions.

S. 1002, the "Community Lending Enhancement and Regulatory Relief (CLEARR) Act," is companion legislation to H.R. 2133, introduced in the House last week by House Financial Services Subcommittee on Financial Institutions and Consumer Credit Chairman Blaine Luetkemeyer, R-Mo.

Sen. Jon Tester, D-Mont., is the lead Democrat on the bill and Sens. Thom Tillis, R-N.C., and Heidi Heitkamp, D-N.D., are original cosponsors.

"NAFCU appreciates Sen. Moran's leadership on this issue and for understanding the high price the current regulatory burden is having on the nation's smaller financial institutions, including credit unions," said NAFCU President and CEO Dan Berger. "We look forward to working with members in the both the Senate and the House to advance this important regulatory relief legislation."

The CLEARR Act would, among other things:

• provide a qualified mortgage safe harbor for portfolio loans that meet certain criteria;
• exempt escrow requirements for a loan secured by a first lien on the principal dwelling of a consumer and held by an insured depository institution with assets of $10 billion or less; and
• provide a safe harbor for good faith compliance with the CFPB's Truth in Lending Act/Real Estate Settlement Procedures Act integrated mortgage disclosure rule.