news.cuna.org/articles/110376-cuna-advocated-reform-priorities-in-appropriations-bill

CUNA-advocated reform priorities in appropriations bill

June 6, 2016

On Thursday, the House Appropriations Committee will mark up the financial services and general government (FSGG) appropriations bill for fiscal year 2017, a bill with several CUNA-supported provisions.

The bill contains funding for a number of important credit union funds, and would make several structural changes to the Consumer Financial Protection Bureau (CFPB).

Those provisions would:

  • Replace the current CFPB director with a five-person commission;
     
  • Move bureau funding under the appropriations process; and
     
  • Require the CFPB to study the use of arbitration clauses prior to issuing any regulation.

CUNA has backed a number of bills that would both change the leadership structure of the CFPB and move its funding to the appropriations process, which CUNA believes are steps toward bringing many voices to the table and reducing future regulatory burdens.

CUNA also has concerns with the CFPB’s arbitration proposal, believing it is inappropriate for credit unions and that it could serve to deny credit union members an efficient alternative to litigation.

The bill also maintains or increases funding for the NCUA’s Community Development Revolving Loan Fund ($2 million), Treasury’s Community Development Financial Institutions Fund ($250 million), Small Business Administration’s (SBA) 7(a) program ($28.5 billion) and the SBA’s 504 loan program ($7.5 billion).