May 05, 2014

CU reg relief bills on House floor today

May 6, 2014 – NAFCU's Brad Thaler yesterday urged the House to pass two NAFCU-backed regulatory relief bills today that will benefit credit unions, one pertaining to the parity of escrow accounts including Interest on Lawyers Trust Accounts and the other to permit lenders more input into CFPB-designated rural designations.

Writing to House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., Thaler urged "swift passage" of H.R. 3468, the "Credit Union Share Insurance Fund Parity Act." This bill would advance parity for escrow accounts in credit unions and banks protected by the National Credit Union Share Insurance Fund and FDIC Deposit Insurance Fund. It would advance a key element of NAFCU's five-point plan for credit union regulatory relief.

"Consumers often do not distinguish between the government backing on accounts at financial institutions," wrote Thaler, NAFCU's vice president of legislative affairs. "It is important that the law dictate that there is no difference in coverage, so as not to favor one type of institution over another in the marketplace."

H.R. 2672, the "CFPB Rural Designation Petition and Correction Act," introduced by Rep. Andy Barr, R-Ky., would be helpful to small creditors, including credit unions, offering mortgages with balloon-payment features in underserved areas, because it would allow them to satisfy the rule's "ability to repay" requirements.

"This legislation is making the designation process fairer and more transparent," Thaler said in a separate letter to House leaders urging passage of H.R. 2672. "It will be particularly helpful for small creditors, including credit unions, offering mortgages with balloon payments in underserved areas."

Both these bills, along with H.R. 3584, the "Capital Access for Small Community Financial Institutions Act," which would give credit unions that have only private share insurance access to membership in the Federal Home Loan Banks, are expected to be addressed today on the House floor on the Suspension Calendar – which is reserved for less-controversial measures that will likely achieve over a two-thirds majority to pass.