NAFCU urges RBC amendment at panel mark-up
July 29, 2014 – The House Financial Services Committee today will markup several regulatory relief measures, including H.R. 4042, the "Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014," which 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.
In a letter to Committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., yesterday, NAFCU Vice President of Legislative Affairs Brad Thaler urged the committee to support an amendment filed by the bill's chief sponsor, Rep. Blaine Luetkemeyer, R-Mo., that would add a similar requirement for mortgage servicing assets under NCUA's risk-based capital proposed rule.
"Enacting this amendment would be an important step to help ensure that the agency, credit unions, Congress and others fully understand and comprehend all impacts of the risk-based capital proposal, especially as those that relate to mortgage servicing assets, before moving forward," Thaler wrote.
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 before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit earlier this month.
The committee will also mark up several other regulatory relief measures today, including:
- H.R. 5018, the "Federal Reserve Accountability and Transparency Act," which would require the Federal Reserve to do a cost-benefit analysis for any new rule;
- H.R. 3240, the "Regulation D Study," which would require a thorough Government Accountability Office study to review the impact of Regulation D's reserve requirements on depository institutions, consumers and monetary policy (a point on NAFCU's "Dirty Dozen" list of rules that could be improved or eliminated); and
- H.R. 3913, which would require agencies to make certain considerations relating to efficiency, competition and capital formation before issuing or modifying certain regulations.
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