February 27, 2014

NFIP, CFPB bills in flux; housing finance delayed

A House vote on legislation to delay flood insurance premium hikes has itself been delayed until next week as Republicans and Democrats discuss the best path to final passage.

Also awaiting action is H.R. 3193, which would implement structural reforms for CFPB. Meanwhile, Hill reports suggest the housing finance reform plan expected from Senate Banking leaders may not be out until late March.

Flood insurance: H.R. 3370, the "Homeowner Flood Insurance Affordability Act," would amend the 2012 Biggert-Waters Flood Insurance Reform Act to delay National Flood Insurance Program premium hikes under remapping until a required feasibility study is completed. The bill, supported by NAFCU, was up for a vote Wednesday under a suspension of House rules but was pulled for further discussion.

CFPB reforms: H.R. 3193, the "Consumer Financial Protection and Soundness Improvement Act," may still get action this week. Supported by NAFCU, this bill would replace the CFPB director with a five-member board or commission; make it easier for the Financial Stability Oversight Council to veto CFPB rules; subject CFPB to appropriations; and require CFPB to get consumers' consent before collecting nonpublic personal information.

Housing finance reform: Reports late Tuesday quoted Sen. Mike Crapo, R-Idaho, ranking member of the Senate Banking Committee, saying he hopes committee Chairman Tim Johnson, D-S.D., will unveil a housing finance reform bill by the end of March. NAFCU continues to advocate guaranteed credit union access to the secondary mortgage market and loan pricing that prioritizes loan quality over volume.