U.S. Capitol
The House overwhelmingly approved a sweeping bipartisan housing and financial services package Wednesday that includes several long-sought regulatory relief provisions backed by the credit union industry, sending the legislation to the Senate for further consideration.
Lawmakers voted 396-13 to pass the "21st Century ROAD to Housing Act," a broad package aimed at increasing housing supply, reducing regulatory barriers and modernizing portions of federal housing and financial services policy.
For credit unions, the legislation includes language from three industry-supported bills focused on governance modernization, mentorship programs and de novo institution formation. America's Credit Unions said it will continue working with the Senate to advance the package.
One provision, the Credit Union Board Modernization Act, would reduce the minimum number of required federal credit union board meetings from 12 annually to six. Industry groups have argued the current requirement is outdated and creates unnecessary burdens for volunteer boards.
The bill also incorporates the Advancing the Mentor-Protégé Program for Small Financial Institutions Act, which would encourage partnerships between larger and smaller credit unions, including minority depository institution credit unions.
Another section, the American Access to Banking Act, seeks to streamline the federal application process for new credit unions and community banks.
The Defense Credit Union Council (DCUC) praised inclusion of the board modernization provision but said lawmakers should continue pursuing additional reforms.
"DCUC appreciates Congress's continued focus on advancing housing solutions for American families," said DCUC President/CEO Anthony Hernandez. He added that the organization hopes Congress continues working with credit unions on "additional meaningful reforms."
DCUC said loan maturity modernization, veteran member business lending reforms and enhancements to the Central Liquidity Facility remain top priorities.
House Financial Services Committee Chairman French Hill, R-Ark., called the legislation proof that "Washington still works," while Ranking Member Maxine Waters, D-Calif., described the bill as "a huge step" toward addressing housing affordability challenges.
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