The House Banking Committee focused on oversight and trying toundo or modify some of President Obama’s initiatives while theSenate Banking Committee focused on less sweeping efforts in2011.

Both panels paid some attention to credit union issues, thoughneither held an oversight hearing on the NCUA.

Legislation that would raise the cap on member businessloans–from 12.25% of assets to as much as 27.5% of assets–was thesubject of hearings by both panels. NCUA Chairman Debbie Matztestified in favor of the measures, arguing that it would fill ademand among small business and would help credit unions bydiversifying their portfolios.

Both sessions featured lively discussions with pointed questionsby opponents of raising the cap and strong testimony by witnessesrepresenting the banking industry. Neither panel has voted on thebill.

However, it is possible that the member business lending billwill be combined with a measure that would provide regulatoryrelief to banks and credit unions. When the House panel consideredthe bank bill, the CEOs of CUNA and NAFCU testified on it, thefirst time in recent years that credit unions were invited to weighin on a bank measure.

The House Financial Services Committee, as befits aRepublican-controlled panel at a time of a Democratic presidency,focused a great deal of attention on what the panel sees as thenegative effect of the Obama administration’s policies.

Even before the Consumer Financial Protection Bureau began itsoperations in July, the panel and its subcommittees–and the HouseOversight Committee–held hearings questioning the need for theagency. Several lawmakers also expressed concern that the agencywould unnecessarily limit consumer choice.

The House Financial Services Committee, and subsequently thefull House, passed a bill that would restructure the bureau to haveit run by a five-member board rather than a director; allow thebureau’s decisions to be overturned by a majority vote of theFinancial Stability Oversight Council rather than two-thirdscurrently required; and delay some of the CFPB’s operations untilit has a confirmed director in place.

The Senate Banking Committee hasn’t taken up the measure and theunwillingness of Senate Democrats to consider it as a reason whyRepublicans in that chamber are blocking the confirmation of apermanent director of the CFPB.

The House panel has also held a series of hearings on howlegislation and regulations supported by the Obama administrationhave stifled the growth of companies and financialinstitutions.

Central City CU President/CEO Patricia Wessenberg told thepanel’s subcommittee on Financial Institutions and Consumer Creditin October that the “barrage of regulations creates an unnecessaryburden without any measure of the effectiveness of these changes.They are costly, both in time and personnel to implement, and theyare confusing to our membership.”

Wessenberg, a CUNA Board member whose Marshfield, Wis.-basedcredit union has $179 million in assets, added that the CFPB willissue rules that will cost credit unions more money.

The Senate Banking Committee, as befits a panel controlled byDemocrats, has focused less on regulatory burden and more on how touse government to relieve some of the financial burdens facing themiddle class.

Wright-Patt CU President/CEO Doug Fecher told the panel’ssubcommittee on Financial Institutions and Consumer Protection thathe hopes the CFPB issues regulations that “empower consumerswithout adding to our regulatory costs.”

He said that his $2.1 billion Fairborn, Ohio-based credit unionhelps its members by disclosing the cost of loans and otherproducts up front. But he noted that while his credit union willchange some terms of mortgages, he opposes reducing the principalbecause the costs will just be shifted to another part of theeconomy and that will be a net negative.

Both the House and Senate panels held hearings on revamping theway the housing finance system operates.

The House committee focused on more comprehensive overhaulplans. By contrast, the Senate panel held a series of informationalsessions at which it explored different aspects of the problem andpossible solutions.

In October, Affinity FCU President/CEO John Fenton urged members of theSenate committee to ensure that any changes in the housing financesystem don’t jeopardize the existence of the 30-year mortgage.

“It’s consumer friendly, straightforward and easy to understand.It’s necessary for the health of the housing market that it remaina viable product,” said Fenton, whose Basking Ridge, N.J., creditunion has assets of $2 billion.

The Senate Banking Committee declined to hold a hearing on onesubject of great interest to credit unions.

Though the panel never formally announced a hearing, severalsources indicated that it planned to hold one in late November onthe nomination of Carla Decker to succeed NCUA Board Member GigiHyland.

However, when the hearing’s witness list was announced, Decker’sname wasn’t on it.

Decker, the president/CEO of the District of Columbia GovernmentEmployees FCU, was nominated by President Obama inOctober.

The momentum of her nomination slowed following a Credit UnionTimes report about a 2010 NCUA examination of Decker’s credit unionthat rated it a CAMEL 3 and concluded that it was a “high strategicrisk.”