House Starts Debating Regulatory Restructuring
The House is today beginning what could be three days of debate on a far-reaching bill to overhaul the way the government regulates financial services.
Of special interest to credit unions is a proposal to create a Consumer Financial Protection Agency, which both CUNA and NAFCU have expressed concern about.
Both are urging lawmakers to support amendments that would exempt credit unions with assets of $10 billion or less from being examined by the CFPA. In a letter to lawmakers, CUNA President/CEO Dan Mica also urged lawmakers to encourage the CFPA to delegate examination of the larger credit unions to the NCUA and also make sure that CFPA relies on the examinations of state-chartered credit unions by state regulators to ensure compliance with federal consumer laws.
NAFCU President/CEO Fred Becker urged lawmakers to be cautious on the CFPA and other measures because "credit unions are the original consumer protection entities."
Both Mica and Becker urged lawmakers to oppose an amendment allowing bankruptcy judges to rewrite mortgages.
Mica wrote that the "specter of a well underwritten loan to a deserving borrower being adjusted through a judicial process is simply abhorrent to most credit union executives and volunteers."
Becker wrote that "any amounts crammed-down are losses to the credit union that ultimately lead to increased loan rates and decreased dividends offered to members of the credit union."
The House is conducting general debate on the measure today and is scheduled to begin discussing and voting on amendments tomorrow.