On a mostly party-line vote, the House today approved legislation that would dramatically revamp the way the government regulates financial services.
A key component of the measure, which passed 223-202, is the creation of a Consumer Financial Protection Agency, which could issue regulations on a range of consumer financial products.
Lobbyists for CUNA and NAFCU succeeded in helping persuade lawmakers to pass an amendment ensuring that credit unions with assets of $10 billion or less wouldn't be subject to an examination by the CFPA.
Recommended For You
All credit unions would have to comply with the rules issued by the new agency, but the examinations would be done by the NCUA for all but those with assets of more than $10 billion.
CUNA was neutral on the final version of the bill for several reasons, including that it divided credit unions by asset size and it didn't direct the CFPA to eliminate duplicative regulations.
NAFCU Executive Vice President Dan Berger said his group is "opposed to the CFPA for credit unions and will continue to work with Congress to attempt to get credit unions excluded from the final bill."
Another provision would give the government additional powers to regulate and rescue firms deemed too big to fail. The Federal Reserve would handle the regulation and the FDIC would administer a fund aimed at rescuing troubled institutions. But lawmakers approved an amendment that would exempt financial institutions with assets of $50 billion or less-which includes all credit unions-from having to contribute to the fund.
It creates a regulatory council on systemic risk issues chaired by the secretary of the treasury and made up of representatives of all financial services regulatory agencies, including the NCUA.
Credit unions dodged a bullet on Capitol Hill today when the House defeated an amendment that would have given bankruptcy judges the power to rewrite the terms of mortgages.
The Senate Banking Committee is just beginning consideration of similar legislation.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
