After years of NAFCU advocacy and credit union grassroots efforts, the House passed the NAFCU-backed Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) on May 22, 2018. Two days later, President Trump signed the bill into law during a ceremony with several NAFCU-member credit union CEOs.
Immediately following the bill's passage in the House, NAFCU President and CEO Dan Berger sent a letter thanking President Trump for his leadership on helping Main Street financial institutions, and urging him to sign the bill. In addition, Berger personally contacted White House staff again to thank them for their dedication to regulatory relief efforts and for working with NAFCU.
S. 2155 includes various credit union regulatory relief measures related to member business lending and the Home Mortgage Disclosure Act. More details on the NAFCU-supported provisions of the bill can be found here.
In June 2017, House Financial Services Committee Chairman Jeb Hensarling's (R-TX) Financial CHOICE Act of 2017 was passed by the House of Representatives. The CHOICE Act includes reform of Consumer Financial Protection Bureau as well as numerous NAFCU-supported regulatory relief provisions already marked-up and passed by the committee. The measure now awaits consideration by the Senate. NAFCU will continue to work to ensure that the best interests of credit unions are preserved as the bill moves through the legislative process.
In the 115th Congress, NAFCU members have also testified before various congressional committees on behalf of the association to educate lawmakers on the pressing need to provide regulatory relief to the nation's credit unions.
On June 8, 2017, Steve Grooms, President/CEO at 1st Liberty Federal Credit Union, testified before the Senate Banking Committee at a hearing entitled “Fostering Economic Growth: The Role of Financial Institutions in Local Communities.” Grooms outlined how Dodd-Frank regulations have harmed his credit union and the industry as a whole and called on Congress to clarify the CFPB's ability to exempt credit unions from certain rules.
On March 21, 2017, Keith Stone, President/CEO at The Finest Federal Credit Union, testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit calling for a reduction of regulatory obstacles that burden credit unions both during the initial chartering stage as well as when new product lines are introduced.
Regulatory relief for community-based financial institutions was also hot topic in the 114th Congress. NAFCU testified before the House Financial Services and Senate Banking Committees on regulatory relief priorities for credit unions including the impact of NCUA's second risk-based capital proposal, field of membership changes, and many other issues outlined in NAFCU's 5 Point Plan for Regulatory Relief.
In September 2016, House Financial Services Committee Chairman Jeb Hensarling introduced the Financial CHOICE Act of 2016, which prescribed regulatory relief for financial institutions in a number of different realms. NAFCU submitted comments on the discussion draft of the bill in July 2015 and on the final bill before the Committee's markup.
On December 3, 2015, Congress passed NAFCU-backed legislation (H.R. 1259), introduced by Rep. Andy Barr (R-KY), as part of a transportation re-authorization package. The legislation, which has since been signed into law, is helpful to small creditors, including credit unions, as they deal with CFPB's definition of "rural areas" particularly as it is related to the ability-to-repay rule and QM definition.
NAFCU welcomes this step and supports other bipartisan initiatives to improve the CFPB's ability-to-repay rule including ensuring mortgages held in portfolio are automatically considered QMs.
View more congressional testimony from NAFCU member credit unions on regulatory relief.