Sens. Manchin and Capito Help Pass Major Reg Relief Bill — 3/15/18
League and CUNA supported legislation moves to House for consideration
On March 14, the Senate passed S. 2155, a League and CUNA supported relief bill that will improve the current operating environment for credit unions and community banks nationwide. The Economic Growth, Regulatory Relief and Consumer Protection Act is a victory for consumers served by credit unions and aligns with the core efforts behind CUNA’s Campaign for Common Sense Regulation.
“We thank our West Virginia Senators Manchin and Capito for supporting this important legislation,” stated League President Ken Watts. “Senator Manchin in particular, took the lead as a co-sponsor of this bill early on to help ease the regulatory burden for smaller financial institutions.”
CUNA and Leagues urged committee leadership to support the regulatory relief legislation that will aid in the removal of barriers that keep credit unions from fully servicing its members. The provisions CUNA supports will:
-Classify credit union one-to-four unit, non-owner occupied residential property loans as real estate loans, freeing up credit unions to lend to more small businesses, which CUNA believes would make up to $4 billion in additional capital available;
-Treat loans held in portfolio by certain lenders as Qualified Mortgages;
-Raise Home Mortgage Disclosure Act reporting thresholds to 500 closed-end and open-end loans in calendar year;
-Apply the same consumer protections in place for mortgage lending to Property Assessed Clean Energy (PACE) loans;
-Remove the three-day wait period required under the Truth in Lending Act Real Estate Settlement Procedures Act integrated disclosure rule’s mortgage disclosure is a creditor extends a second offer of credit unions a lower annual percentage rate to the consumer;
-Provide legal immunity for properly trained, good-faith reporters of suspected financial elder abuse;
-Require the Treasury to conduct a study on the risks that cyber-threats might pose to financial institutions.
In a prepared news release sent out following the bill’s passage, Senator Capito stated, “For years, our smaller financial institutions in West Virginia have struggled under the weight of burdensome Dodd-Frank regulations. With this legislation, the Senate sent a clear message that those days are over. I was proud to help pass this bipartisan bill that will deliver the most significant reform of Dodd-Frank in nearly a decade and provide commonsense regulations for Main Street businesses, community banks, credit unions, and smaller financial institutions in West Virginia. I was also glad to see that many of the priorities I have long advocated for—dating back to my days in the House—are reflected in the bill. Hardworking West Virginians deserve a fair shot and a chance to succeed, and this legislation will give them that chance.”
The legislation will now move on to the House for consideration, although no timetable has been set.
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