‘CHOICE Act’ gets thumbs up by committee, 34-26

May 4, 2017 -- After two full days of debate, the sweeping regulatory reform legislation known as the Financial CHOICE Act was adopted by the House Financial Services Committee Thursday, on a vote of 34-26 (along partisan lines).

The legislation – which is largely aimed at dismantling the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, includes a number of NASCUS-supported provisions, including: more transparency in the NCUA budgeting process (including through public hearings), and for the overhead transfer rate (OTR).

The bill also contains a so-called “off-ramp” provision that would allow financial institutions, including credit unions, that maintain an average leverage ratio of at least 10% the option to be exempt from federal capital and liquidity requirements. The institutions, if they apply for the exemption and receive it, would be defined as “qualifying banking organizations” (QBOs) in the CHOICE Act.

The bill, known as H.R. 10, now heads to the House floor for consideration; no timetable for a vote has been set. The House goes out for a one-week recess after Thursday, scheduled to return May 16.