HFSC sends four CUNA-backed bills to House for consideration
WASHINGTON (10/1/15)--With numerous legislators emphasizing that credit unions and other small financial institutions should not be punished by burdensome regulations, the U.S. House Financial Services Committee referred four CUNA-backed bills to the House Wednesday.
Members of the committee voted 50-9 to pass the Risk-Based Capital Study Act of 2015 (H.R. 2769). The bill would delay the National Credit Union Administration’s risk-based capital proposal until a study of its impact is conducted.
CUNA President/CEO Jim Nussle has said the proposal is a “solution in search of a problem.” Rep. Jeb Hensarling (R-Texas), the committee chair, used the same words, saying "so many are concerned the NCUA’s proposal is a solution in search of a problem” in his opening statement.
The bill’s sponsor, Rep. Stephen Fincher (R-Tenn.), said the bill is not an attempt to get rid of the NCUA’s proposal, just a chance to get more information.
“With the economy still recovering from the financial crisis, any proposal with the potential to inhibit healthy credit unions from making loans should be gone through thoroughly,” Fincher said. “This bill would simply prevent the NCUA from moving forward with its second risk-based capital proposal until it delivers additional information to Congress on exactly how it would impact credit union lending to consumers, many of whom rely on credit unions.”
The other CUNA-supported bills that passed the committee are as follows:
The Bureau of Consumer Financial Protection-Inspector General Reform Act of 2015 (H.R. 957), which would create an independent inspector general for the Consumer Financial Protection Bureau (CFPB), passed 56-3;
The Retail Investor Protection Act (H.R. 1090), which would correct the Department of Labor’s proposed fiduciary rule, passed 34-25; and
- The Financial Product Safety Commission Act of 2015 (H.R. 1266), which would remove the CFPB from the Federal Reserve System and re-establishes it as a stand-alone agency that is governed by a five-member, bipartisan commission, passed 35-24.
The next step for the series of regulatory relief measures is a vote by the full House.