WASHINGTON — The Financial Services Regulatory Relief Act (S. 2856) is waiting on the final step in the process to become law: George W. Bush's John Hancock.
In a late night session Sept. 29 (actually, early Sept. 30) before adjourning for campaigning, the Senate approved the bill by unanimous consent, which means there were no remaining objections. Credit union specific provisions in the legislation included allowing low- and no-cost land leases on military installations; expanding the 12-year loan maturity limit to 15; permitting wire transfers and check cashing for anyone within the field of membership; and the so-called "FASB fix" from the original Senate bill.
Another was added to "fine tune" the Federal Trade Commission's authority to begin oversight of private deposit insurance disclosures with states overseeing the availability of the insurers' financials originally enacted in the Federal Deposit Insurance Corporation Improvement Act about a decade ago, CUNA Senior Vice President and Deputy General Counsel Mary Dunn explained. Additionally, the bill permitted the Federal Reserve to begin paying interest on Reg D "sterile" reserves in 2012.
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At deadline, there was no word on when it would be signed into law.
CUNA President/CEO Dan Mica applauded Congress' work, but added, "we also believe there is more work to be done in giving credit unions more flexibility and improvement in the regulation of service to their members. We will continue to work in the next Congress for both."
NAFCU Director of Legislative Affairs Brad Thaler commented, "We're pleased to see regulatory relief pass after nearly six years of work. We're pleased to see a balanced bill…We continue to believe that there is a need for more regulatory relief and we'll continue to push for that with CURIA."
Congress will return for a lame duck session in mid-November.
NCUA Chairman JoAnn Johnson assured, "Although not as ambitious as earlier versions, the legislation that has finally passed represents progress for credit unions and their members. As the agency begins the process of drafting corresponding regulations, we will do so in recognition of a marketplace that makes demands on the credit union industry to constantly update its ability to serve the 21st Century consumer."
S. 2856 passed the House 417-0 earlier in the week. Congressman Jeb Hensarling (R-Texas), who sponsored the broader House bill, commented, "Our financial institutions are in desperate need of regulatory relief. There are far too many redundant and costly regulations that make credit more expensive and less accessible. Thoughtful regulatory relief improves the vitality of our capital markets and helps more Americans realize their dreams of homeownership, higher education or owning their own small business." –[email protected]
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