On a mostly party line vote, the House Financial Services Committee approved a measure to create a new agency to regulate consumer financial products and CUNA and NAFCU expressed concern about the bill.
The measure, which passed 39-29, includes a partial exemption for credit unions from being subject to examination by the Consumer Financial Protection Agency and the trades are pushing for a broader exemption. There is also concern about a possible residual effect on credit unions of an amendment mandating that national banks comply with state laws, even if they are tougher than federal laws and regulations, unless their federal regulator determines that the state law or regulation places the institution at a competitive disadvantage against state-chartered institutions.
All of the Democrats on the panel supported the measure except Reps. Travis Childers (D-Miss.) and Walter Minnick (D-Idaho). Rep. Mike Castle (R-Del.) was the only member of his party on the committee who supported it.
CUNA President/CEO Dan Mica said his association has "significant concerns about the impact that elements of this legislation will have on credit unions and their members. We will continue to work with Chairman Frank to address our concerns, specifically with respect to the examination and enforcement of credit unions, as this bill moves toward floor consideration in the coming weeks."
NAFCU Executive Vice President of Government Affairs B. Dan Berger said that his association appreciates "the committee going after the bad actors, but some of their efforts spilled over to credit unions. Several committee members rightly pointed out that we didn't cause the crisis."
NASCUS President/CEO Mary Martha Fortney has a more favorable assessment of the legislation, which could be considered by full House later this year.
"Many of the areas of the legislation recognize the value of state regulatory authority and the efficacy of the states to protect consumers," she said. "As this bill continues to the House floor, NASCUS and state regulators will continue to ensure that state regulatory authority is maintained and state-chartered credit union interests are represented in the legislation that is eventually considered by the full House."
