Newsroom

August 24, 2014

Hensarling to press CU parity in 'stop and study' bill

July 30, 2014 – NAFCU President and CEO Dan Berger conveyed thanks to House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Reps. Blaine Luetkemeyer, R-Mo., and Ed Perlmutter, D-Colo., for backing credit union parity in connection with a proposed study targeting community banks' capital requirements.

The bill, one of several in mark-up, is H.R. 4042, the "Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014." The measure would put a "stop and study" requirement in place for certain aspects of the new Basel III rules as they relate to mortgage servicing assets.

During mark-up, Rep. Blaine Luetkemeyer, R-Mo., discussed his amendment to set a similar study requirement under NCUA's risk-based capital proposed rule. That amendment didn't get a vote Tuesday, but Hensarling acknowledged it and said he will support the effort as H.R. 4042 moves forward. Perlmutter also supported the effort.

Luetkemeyer also rebuked NCUA for a letter sent urging opposition to any RBC related amendments during mark-up.

NAFCU supported Luetkemeyer's amendment in a letter Monday. Mark-up of this and other bills resumes today at 9 a.m. Eastern.

A "stop and study" approach to risk-based capital was urged by NAFCU witness David Clendaniel, president and CEO of Dover Federal Credit Union, in testimony earlier this month before a House Financial Services subcommittee. NAFCU has also submitted draft language.