January 16, 2018

NAFCU advocates for CUs, presses for reg relief ahead of mark-up

The House Financial Services Committee today begins its mark-up of more than a dozen bills, among them a NAFCU-backed bill that would increase the CFPB's exemption threshold for community institutions such as credit unions, and another that prevents the CFPB's jurisdiction from encroaching on the insurance industry.

The House Financial Services Committee will begin its mark-up at 10 a.m. Eastern.

Ahead of the mark-up, NAFCU Vice President of Legislative Affairs Brad Thaler wrote in support of legislation being considered, including:

  • The NAFCU-backed Community Financial Institution Exemption Act (H.R. 1264), which would raise the CFPB exemption threshold for community institutions to $50 billion in assets and strengthen the bureau's exemption authority.
  • The Portfolio Lending and Mortgage Access Act (H.R. 2226), which would provide safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio.
  • The Business of Insurance Regulatory Reform Act of 2017 (H.R. 3746), which would help clarify the limits of the CFPB regulating insurance and ensure the bureau's jurisdiction doesn't spread and create new burdens on credit unions.

Thaler also noted NAFCU's concern with one bill, the Federal Savings Association Charter Flexibility Act (H.R. 1426). Thaler suggested instead that NAFCU could work with the committee to create a balanced package that includes charter improvements for both federal savings associations and credit unions that could be moved collectively.

As the committee moves forward with regulatory relief measures for community financial institutions, Thaler recommended addressing credit union issues such as capital reform, field-of-membership improvements and cost-benefit analyses of regulations.