Though Not Named, Bank Bill Would Also Benefit Credit Unions
Despite no meaningful mention of credit unions, NAFCU and CUNA are praising H.R. 1750, a regulatory relief bill for community banks introduced Thursday by Rep. Blaine Luetkemeyer (R-Mo.).
According to the bill’s text, the proposed legislation would “enhance the ability of community banks to foster economic growth and serve their communities, boost small businesses, increase individual savings, and for other purposes.”
Despite the political snub, the bill would bring regulatory relief to credit unions by raising the CFPB’s mortgage servicing exemption from 5,000 loans serviced to 20,000. The bill would also exempt lenders with fewer than $10 billion in assets from the CFPB’s mortgage escrow requirements, as well as the bureau’s qualified mortgage rules, provided the loans are kept on the institution’s balance sheet for more than three years.
Another provision would eliminate a requirement that financial institutions verify that automated clearing house payments are not a prohibited transaction, if the originating institution is compliant with the Office of Foreign Assets Control regulations.
Interestingly, the bill includes language that is similar to Luetkemeyer’s privacy notice bill, which passed the House March 12. A companion bill was introduced in the Senate shortly thereafter by Sen. Sherrod Brown (R-Ohio), who also introduced a regulatory relief bill for bankers on Wednesday.
In a letter Thursday to Luetkemeyer, CUNA President/CEO Bill Cheney commended the Missouri congressman for “seeking common ground on regulatory relief legislation” but cautioned that more needs to be done to bring regulatory relief to credit unions.
NAFCU Vice President of Legislative Affairs Brad Thaler said his trade appreciates the continuing focus on regulatory relief and could support a balanced package that includes elements for both credit unions and community banks. Rep. Gary Miller (R-Calif.) announced April 10 that he is preparing a bill that would specifically address credit union regulatory concerns, but that bill has not yet been introduced. However, Miller is one of two co-sponsors of Luetkemeyer’s bill. The other co-sponsor is Rep. Lynn Westmoreland (R-Ga.).