The Senate Banking Committee on Tuesday is slated to mark up its version of a regulatory overhaul bill for financial institutions—legislation that is supported by credit union trade groups.
The bill calls for exempting one-to-four unit, non-owner occupied residential loans from a credit union's member business lending cap.
The legislation also would exempt depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the past two years from certain Home Mortgage Disclosure Act requirements.
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The legislation is the result of negotiations between Banking Committee Chairman Mike Crapo (R-Id.) and moderate Democrats on the committee. But Banking Committee ranking Democrat Sherrod Brown of Ohio has said he cannot support the measure, saying it removes much-needed consumer protections.
The legislation includes other provisions that the trade groups have supported.
However, it is far less comprehensive than regulatory overhaul legislation that the House has passed.
For instance, the bill does not make large changes to the CFPB—a frequent target for congressional Republicans and credit unions.
The House has passed Financial Services Chairman Jeb Hensarling's (R-Texas) Financial CHOICE Act, which would greatly diminish the CFPB's powers. The Trump Administration also has pushed for large changes to the agency.
In the days since the legislation was introduced in the Senate, CFPB Director Richard Cordray has resigned and President Trump has appointed Office of Management and Budget Director Mick Mulvaney to head the agency on an interim basis.
Brown and Banking Committee member Elizabeth Warren (D-Mass.) vehemently opposed that move.
The markup could become bogged down over CFPB politics. But for the legislation to have any chance of passing the Senate it probably could not include controversial changes to the agency since it likely would take 60 votes to pass it.
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