UPDATE: Regulatory Relief Bills Reach House Floor
May 6, 2014 – Three pieces of legislation supported by NASCUS passed the House last night: the Capital Access for Small Community Financial Institutions Act of 2013 (H.R. 3584), Credit Union Share Fund Insurance Parity Act (H.R. 3468) and the CFPB Rural Designation Petition and Correction Act (H.R. 2672).
May 7, 2014 – Providing regulatory relief for small community financial institutions has been a focus of legislators, especially in the House Financial Services Committee and Committee on Small Business. Several pieces of legislation have been introduced around this issue, and both committees held hearings to examine regulatory burdens on small financial institutions in December. Legislation has focused primarily on ensuring that community financial institutions continue to be able to provide credit to consumers and small businesses, especially in rural and underserved areas. A few of these important bills are slated for a House vote today.
The Capital Access for Small Community Financial Institutions Act of 2013 (H.R. 3584), which was introduced by Reps. Steve Stivers (R-Ohio) and Joyce Beatty (D-Ohio), would allow state-chartered, privately insured credit unions to join the Federal Home Loan Bank system. NASCUS supports FHLB access for privately insured credit unions and worked with legislators to improve this proposal by removing requirements to report and share information with the NCUA.
Other bills on the House schedule today include the Credit Union Share Fund Insurance Parity Act (H.R. 3468), which was introduced by Reps. Ed Royce (R-Calif.) and Ed Perlmutter (D-Colo.), and the CFPB Rural Designation Petition and Correction Act (H.R. 2672), sponsored by Rep. Ed Royce. House bill 3468 would provide National Credit Union Share Insurance Fund coverage for interest on lawyer trust accounts (IOLTAs) and other escrow accounts, while H.R. 2672 focuses primarily on ensuring that community financial institutions can continue to be able to provide credit to consumers and small businesses in rural and underserved areas.
“NASCUS has been and will continue to be committed to ensuring that regulatory relief efforts maintain momentum this year,” said NASCUS President and CEO Mary Martha Fortney.
In a Dec. 18 letter to the House Financial Services Committee, NASCUS voiced its support for these pieces of legislation, which “would help provide relief to small institutions that have been struggling under the weight of post-crisis regulation.”