The U.S. Capitol Building
A long-sought credit union governance reform is moving closer to becoming law after Senate and House committee leaders unveiled an updated housing package that includes the Credit Union Board Modernization Act.
The provision is part of the bipartisan 21st Century ROAD to Housing Act, released Tuesday by Senate Banking Committee Chairman Tim Scott (R-S.C.), Ranking Member Elizabeth Warren (D-Mass.), House Financial Services Committee Chairman French Hill (R-Ark.), and Ranking Member Maxine Waters (D-Calif.).
The Credit Union Board Modernization Act would allow federal credit union boards to meet a minimum of six times per year rather than the current requirement of monthly meetings. Credit union advocates have argued that the existing rule is outdated and imposes unnecessary administrative burdens on volunteer boards.
"Credit unions make homeownership possible for millions of members, and we are encouraged by lawmakers' efforts to focus on practical solutions through the 21st Century Road to Housing Act," said America's Credit Unions President/CEO Scott Simpson.
Simpson added that the package includes "regulatory relief provisions that will allow credit unions to focus more of their resources on serving their members, including through the Credit Union Board Modernization Act."
Beyond board governance reforms, the housing package contains several provisions affecting credit unions. The legislation would establish a mentor-protégé program pairing larger financial institutions with smaller institutions, rural institutions and minority depository institutions. It also directs the NCUA to study ways to support the formation of de novo credit unions and strengthen rural credit unions.
The board modernization measure has passed the House multiple times in recent years as both standalone legislation and as part of larger legislative packages. If approved by the Senate, the revised housing bill would still require House approval before being sent to President Donald Trump for consideration.
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