The House Appropriations Committee passed its Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 late Wednesday night, legislation with a number of CUNA-supported regulatory relief provisions. CUNA wrote in support of the bill Wednesday prior to the committee’s markup.
“We support the many regulatory relief provisions included in the Subcommittee draft that would benefit credit unions. It includes a two-year delay to the effective date of the NCUA’s risk-based capital rule, from January 1, 2019 to January 1, 2021,” wrote CUNA President/CEO Jim Nussle. “The bill also includes the Mortgage Choice Act, the Privacy Notification Technical Clarification Act, the Financial Institutions Examination Fairness and Reform Act, the TRID Improvement Act, and the Bureau of Consumer Financial Protection–Inspector General Reform Act.”
The CUNA-supported bills in the FSGG legislation would:
An amendment offered by Rep. Steve Palazzo (R-Miss.) passed by voice vote during the committee's consideration of the bill, adding an additional $25 million to the committee's recommended level of $191 million for the Treasury's Community Development Financial Institutions Fund (CDFI) Fund. The amendment increases the total funding in the bill for the CDFI Fund to $216 million.
CUNA strongly supports the legislation’s funding level of $2 million for NCUA’s Community Development Revolving Loan Fund, which assists credit unions serving low-income communities.
CUNA also supports the loan limit designations for the Small Businesses Administration’s 7(a) program (set at $30 billion) and 504 loan program (set at $7.5 billion).
Loans made under those programs can be partially guaranteed by the government, and the guaranteed portions do not count against a credit union’s statutory cap on member business lending, set at 12.25% of assets.