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On Dec. 5, the Senate Banking Committee will mark up a regulatory reform bill that includes several NAFCU-backed provisions, including one to exempt certain loans from the credit union member business lending (MBL) cap and another to provide relief from certain Home Mortgage Disclosure Act (HMDA) disclosure requirements.

Ahead of the mark-up, NAFCU continues to advocate for regulatory relief for credit unions, including on its principle of seeking a regulatory environment that allows credit unions to grow, such as modernizing capital standards and seeking congressional action to provide credit unions relief from the NCUA's risk-based capital rule.

The bipartisan legislation (S. 2155) was introduced by Senate Banking Committee Chairman Mike Crapo, R-Idaho, last week and has the support of nine Democratic and nine Republican senators. The goal of the bill is to provide regulatory relief that would stimulate economic growth while fortifying consumer protections.

The NAFCU-backed provisions in the regulatory relief package include:

• The Credit Union Residential Loan Parity Act, which would allow credit unions to treat loans that qualify for the MBL exemption as residential loans with lower interest rates – similar to how banks make these loans to small businesses.
• The Home Mortgage Disclosure Adjustment Act, which would exempt depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the previous two years from certain HMDA reporting and recordkeeping requirements.

Other NAFCU-supported provisions in Title I of the package would provide credit unions with regulatory relief from various Truth in Lending Act (TILA) and TILA/Real Estate Settlement Procedures Act (RESPA) integrated mortgage disclosure rule provisions. (Read more here)

The Senate Banking's mark-up on the regulatory relief bill begins at 10 a.m. Eastern on Dec. 5.