House Passes Reg Relief
The House on May 6 passed three regulatory relief bills affecting credit unions.
They were the Credit Union Share Insurance Fund Parity Act (H.R. 3468), the CFPB Rural Designation Petition and Correction Act (H.R. 2672), and the Capital Access for Small Community Financial Institutions Act (H.R. 3584).
“Part of the mission of credit unions, from their very beginning, has been to reach out to the community around them, especially the underserved. Maintaining a strong commitment to the IOLTA community and removing a barrier to greater participation sustains that mission,” Rep. Ed Royce (R-Calif.) said, referencing H.R. 3468.
H.R. 3468, supported by both CUNA and NAFCU, would provide the NCUSIF coverage for trust accounts, including Interest on Lawyer Trust Accounts.
H.R. 2672, sponsored by Royce, would give credit unions greater input in the CFPB's rural area designations, which affect the kinds of financial products credit unions are able to offer in certain areas. The bill would create a process in which individuals could petition the CFPB to have the rural status of a county reassessed. That would allow a broader range of evaluation criteria, more accurately identify rural counties and help ensure continued access to mortgage credit.
The third bill of interest to credit unions that passed the House was H.R. 3584, the Capital Access for Small Community Financial Institutions Act. Introduced by Reps. Steve Stivers (R-Ohio) and Joyce Beatty (D-Ohio), it would allow state chartered, privately insured credit unions to apply for membership with the Federal Home Loan Bank.
The measures now go to the Senate.