Legislative Affairs/114th Congress, significant actions

NASCUS is dedicated to providing focused and incisive advocacy on behalf of the state-chartered credit union system, with a strong voice on Capitol Hill extolling the benefits of the dual charter. NASCUS generally comments only on federal legislation which: affects the dual chartering system, impacts state-chartered credit unions, touches on state-chartered credit union share insurance requirements, or infringes upon state regulatory authority.

113th Congress, significant legislative actions

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114th Congress

Legislation

Date

Description

H.R. 5983: Financial CHOICE Act of 2016

 

Introduced on 09/09/16; Passed House Financial Service Committee consideration on 09/13/16; no further action.

Summary: Amends the Federal Credit Union Act to provide for a five member NCUA Board; to require NCUA to submit a draft annual budget for public comment; to require NCUA to establish a Credit Union Advisory Council; provide for an 18 month (or longer) examination cycle for certain credit unions; and require NCUA provide a report containing a detailed analysis of its expense allocation, as well as detail as to how much of the agency’s expenses are funded via FCU operating fees v. the NCUSIF.

H.R.5869 : Title TBD (Overhead Transfer Rate transparency)
Introduced and referred to the House Committee on Financial Services on July 14, 2016.  No additional action taken. To amend the Federal Credit Union Act to require the National Credit Union Administration Board to provide a rationale for any amounts the Board proposes to use from the National Credit Union Share Insurance Fund, and for other purposes.
H.R.4538 : Senior Safe Act of 2016
Introduced on 02/11/16; Amended by House Financial Services Committee on 07/05/16 and Passed by House on 07/05/16; similar legislation pending in Senate. Provides immunity from suit for certain employees of covered financial institutions who disclose/report suspected financial exploitation of senior citizens.
H.R. 5419 : Credit Union Examination Reform Act of 2016
Introduced on 06/09/16. No further action. Amends the Federal Credit Union Act to extend NCUA’s examination cycle to 18 months for certain credit unions.

S. 3215: Home Mortgage Disclosure Adjustment Act

 

 

Introduced and referred to Committee on Banking, Housing and Urban Affairs (07/14/16).  No additional action. Amends the Home Mortgage Disclosure Act of 1975 to specify which depository institutions are subject to the maintenance of records and disclosure requirements of the Act.  Related Bill - H.R. 4997.

S. 3153: TAILOR Act of 2016

 

 

Introduced and referred to Committee on Banking, Housing and Urban Affairs (07/11/16).  No additional action.

Requires Federal financial institutions regulatory agencies to take into consideration institution risk profiles and business models when taking regulatory actions. Related Bill - H.R. 2896.

HR 22: Fixing America’s Surface Transportation Act (FAST Act)

*Related Bills: HR 299, HR 601, HR 749, S 635, HR 2672, HR 5786 and S 1916

Became Law 12/04/15

The FAST Act incorporated language that impact CUs.  For example, Title LXXV,§75001,  incorporates language pertaining to privacy notice requirement exceptions, Title LXXXII, §82001 incorporates languages pertaining to privately-insured credit union membership in the FHLB and Title LXXXIX, § 89002 incorporates language regarding the expansion of lending practices in rural communities.  

HR 2287: NCUA Budget Transparency Act

*Related Bill: S 924

Introduced 05/13/15; no further action.

Amends the FCUA to require the NCUA, before the annual submission of its required detailed business-type budget, to: (1) print a draft of the budget in the Federal Register; (2) hold a public hearing to receive comments from the public on the draft; and (3) include in the required integral set of accounts statements in which the budget will address any of such comments.

HR 2205: Data Security Act of 2015

 

*Related Bill: S 961

Introduced 05/01/15; no further action.

Requires individuals, corporations, or other non-government entities that access, maintain, communicate, or handle sensitive financial account information or nonpublic personal information to implement an information security program and to notify consumers, federal law enforcement, appropriate administrative agencies, payment card networks, and consumer reporting agencies of certain data breaches of unencrypted sensitive information likely to cause identity theft or fraudulent transactions on consumer financial accounts.
Directs entities to require their third-party service providers by contract to implement appropriate safeguards for sensitive information.
Allows an entity to delay notifications upon the request of a law enforcement agency.
Provides special notification procedures for: (1) third-party service providers that maintain data in electronic form on behalf of another entity, and (2) certain electronic data carriers.
Allows financial institutions to communicate with account holders regarding breaches at third-party entities with access to their account information.
Sets forth alternative compliance procedures for: (1) financial institutions and affiliates under the Gramm-Leach-Bliley Act, and (2) entities complying with certain health record privacy laws.
Requires this Act to be enforced by the Federal Trade Commission, the Comptroller of the Currency, the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Office of Federal Housing Enterprise Oversight, or a state insurance authority depending on the type of entity handling the sensitive information.
Prohibits certain state laws from being imposed for information security and breach notification purposes. Sets forth requirements concerning the application of this Act to entities regulated by the Federal Communications Commission.

HR 1188: Credit Union Small Business Job Creation Act

 

*Related Bill: S 2028

Introduced 03/02/15; no further action.

Amends the FCUA to prohibit an insured credit union from making any member business loan that would result in the total amount of such loans outstanding at that credit union at any one time exceeding either: (1) 1.75 times the actual net worth of the credit union, or (2) 12.25% of the total assets of the credit union.
Authorizes the NCUA Board to approve an application by an insured credit union to make one or more member business loans that would result in a total amount of such loans outstanding at any one time of up to 27.5 % of the total assets of the credit union, if the credit union meets specified safety and soundness criteria.
Prohibits an insured credit union that has made such a member business loan but that is not well capitalized from making any new member business loans until it becomes well capitalized and obtains Board approval.
Directs the Board to develop a tiered approval process, including lending standards, under which an insured credit union gradually increases the amount of member business lending in a manner consistent with safe and sound operations and directs the Comptroller General to study the status of member business lending by insured credit unions.

HR 1941: Financial Institution Examination Fairness & Reform Act (FIEFRA)

*Related Bill: S 774

Introduced 04/22/15; no further action.

Amends the Federal Financial Institutions Examination Council Act of 1978 to require a federal financial institutions regulatory agency to make a final examination report to a financial institution within 60 days after the later of: (1) the exit interview for an examination of the institution, or (2) the provision of additional information by the institution relating to the examination.
Sets a deadline for the exit interview if a financial institution is not subject to a resident examiner program.
Prescribes examination standards for financial institutions.
Establishes in the FFIEC Office of Independent Examination Review and entitles a financial institution to appeal a material supervisory determination contained in a final report of examination, etc.

HR 2473: Preserving Capital Access and Mortgage Liquidity Act of 2015

Introduced 05/20/15; no further action.

Amends the Federal Home Loan Bank Act to redefine "community financial institution" to include either a federal or state credit union.

HR 1195: Bureau of Consumer Financial Protection Advisory Boards Act

*Related Bill: S 1963

Introduced 03/02/15; passed House on 04/22/15 and referred to Senate Committee on Banking, Housing and Urban Affairs on 04/23/15.

Amends the Consumer Financial Protection Act of 2010 to (among other things) direct the Director of the CFPB to establish a Small Business Advisory Board to: (1) advise and consult with the CFPB in the exercise of its functions under the federal consumer financial laws regarding eligible financial products or services, and (2) provide information on evolving small business practices.

HR 989: The Capital Access for Small Businesses and Jobs Act

*Related Bill: HR 719

Introduced on 02/13/15; no further action.

Amends the FCUA to empower federal credit unions to receive payments on certain uninsured non-share accounts, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the NCUA Board.
Requires any Board-prescribed system of prompt corrective action to take into account that credit unions rely predominantly (under current law, must rely) upon retained earnings to build net worth and redefines "net worth" with respect to any insured credit union (other than a low-income credit union) to include uninsured non-share capital accounts that meet certain conditions.

HR 1480: SAFE Act Confidentiality & Privilege Enhancement Act

*Related bills: S 372 and S 1910.

Introduced on 03/19/15; passed House on 04/13/15 and referred to Senate on 04/14/15.

 Amends the S.A.F.E. Mortgage Licensing Act of 2008 to extend to state and federal regulatory officials having financial services oversight authority (currently only those having mortgage oversight authority) access to any information provided to the Nationwide Mortgage Licensing System and Registry (or any system established by the Director of the Consumer Financial Protection Bureau without the loss of privilege or confidentiality protections provided by federal and state laws.

S 1217: Housing Finance Reform and Taxpayer Protection Act of 2014

Introduced 12/09/14; no further action.

Directs the Federal Mortgage Insurance Corporation (FMIC) established under Act to take all steps necessary to dissolve and eliminate the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Revokes the charters for Fannie Mae and Freddie Mac.

HR 2076: Marijuana Business Access to Banking Act of 2015

*Related Bill: S 1726

Introduced on 04/28/15; referred to House Subcommittee on Crime, Terrorism, Homeland Security & Investigations on 06/01/15.

This bill provides a safe harbor for depository institutions providing financial services to a marijuana-related legitimate business insofar as it prohibits a federal banking regulator from: (1) terminating or limiting the deposit or share insurance of a depository institution solely because it provides financial services to a marijuana-related legitimate business; or (2) prohibiting, penalizing, or otherwise discouraging a depository institution from offering such services.

HR 1155: SCRUB Act

*Related Bill: S 1683

Introduced 02/27/15; passed House on 01/07/16.

Establishes the Retrospective Regulatory Review Commission to conduct a review of the Code of Federal Regulations to identify rules and sets of rules that collectively implement a regulatory program that should be repealed to lower the cost of regulation. Directs the Commission to give priority to the review of rules or sets of rules that are major rules or that include major rules, that have been in effect more than 15 years, that impose paperwork burdens that could be reduced substantially without significantly diminishing regulatory effectiveness, that impose disproportionately high costs on small entities, or that could be strengthened in their effectiveness while reducing regulatory costs. Assigns the Commission a goal of achieving a reduction of at least 15% in the cumulative costs of regulation with a minimal reduction in the overall effectiveness of such regulation.

HR 1422: Credit Union Residential Loan Parity Act

Related Bills: HR 4226 and S 1440

Introduced 03/18/15; no further action.

Amends the Federal Credit Union Act to revise the definition of "member business loan," which currently excludes an extension of credit fully secured by a lien on a 1- to 4-family dwelling that is the primary residence of a member.  Removes the condition that the dwelling be a member's primary residence and declares that this Act does not preclude the NCUA from treating an extension of credit fully secured by a lien on a 1- to 4-family dwelling that is not a member's primary residence as a member business loan for purposes other than certain member business loan limitation requirements under the Act.

HR 688: Credit Union Small Business Jobs Creation Act

Related Bill: S 968

Introduced 02/14/13; no further action.

Amends the FCUA to prohibit an insured credit union from making any member business loan that would result in the total amount of such loans outstanding at that credit union at any one time exceeding either: (1) 1.75 times the actual net worth of the credit union, or (2) 12.25% of the total assets of the credit union.
Authorizes the NCUA Board to approve an application by an insured credit union to make one or more member business loans that would result in a total amount of such loans outstanding at any one time of up to 27.5 % of the total assets of the credit union, if the credit union meets specified safety and soundness criteria. Prohibits an insured credit union that has made such a member business loan but that is not well capitalized from making any new member business loans until it becomes well capitalized and obtains Board approval.
Directs the Board to develop a tiered approval process, including lending standards, under which an insured credit union gradually increases the amount of member business lending in a manner consistent with safe and sound operations.
Directs the Comptroller General to study the status of member business lending by insured credit unions.

HR 1297: Disaster Response Reform Act of 2015

Introduced on 03/05/15; no further action.

Requires HUD (for a covered mortgage that is owned or guaranteed by the Fannie Mae or Freddie Mac and the FHFA) to prohibit mortgagees and servicers from initiating or taking action to further any foreclosure with respect to a covered mortgage for 90 days after a presidential declaration of the disaster.

Defines a "covered mortgage" as a mortgage that: (1) is secured by a one- to four-family dwelling that is the mortgagor's principal residence and is located within a major disaster area declared by the President; and (2) is insured by the FHA or owned or guaranteed by Fannie Mae or Freddie Mac.

 

HR 2370: End Anonymous Patents Act (Patent Troll)

*Related Bill: HR 2024

Introduced 06/26/15; no further action.

Requires entities holding patents to disclose their identities and the identities of any real parties in interest.

HR 2639/ S 1013: Patent Litigation and Innovation Act (Patent Troll)

*Related Bill: S 1013

Introduced 09/13/13; no further action.

Modifies standards for court pleadings, joinder of parties, and stays of action/discovery in civil actions when a party is alleging infringement. 

HR 2673: Portfolio Lending and Mortgage Access Act

*Related Bill: S 2641

Introduced 07/11/13; Hearing held by Committee on Banking, Housing & Urban Affairs on 09/16/14.

Amends the Truth in Lending Act with respect to the permission that a creditor may presume that a residential mortgage loan has met the requirement that, at the time the loan is consummated, the consumer has a reasonable ability to repay it, if the loan is a qualified mortgage.
Treats as a qualified mortgage any residential mortgage loan made by a creditor so long as it appears on the creditor's balance sheet (held on portfolio).

HR 3211: Mortgage Choice Act of 2013

 

*Related Bills: S 1577, S 949 and HR 1077.

Introduced 09/28/13; passed House 06/09/14; received by Senate on 06/10/14.

Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater.
Excludes from the computation of such points and fees any escrow for future payment of insurance.
Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement.
Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes; and Modifies the conditions under which federal departments and agencies may exempt refinancing under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)