House passes FSGG bill with CUNA-backed relief 239-185

July 8, 2016

The U.S. House passed the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2017 (H.R. 5485) late Thursday night with a 239-185 vote. The future of the bill, which contains a number of CUNA-supported regulatory relief provisions, is unclear.

CUNA wrote to House leadership last month urging passage of the bill. During debates on the House floor, Rep. Steve Stivers (R-Ohio) referenced a CUNA letter to the Consumer Financial Protection Bureau (CFPB) outlining concerns with the bureau’s proposed short-term, small-dollar lending rule.

H.R. 5485 would require additional CFPB analysis on the proposal, which CUNA is concerned could impact many consumer-friendly credit union products.

The bill would also:

  • Change the leadership structure of the CFPB to a five-person board and place the bureau under the appropriations process;
  • Require the CFPB to study the use of arbitration prior to issuing any new regulations. This would affect the bureau’s recent proposal on arbitration;
  • Instruct the CFPB to strongly consider the impact the bureau’s rules have on small financial institutions such as credit unions;
  • Call for the Federal Communications Commission to revisit its Telephone Consumer Protection Actorder and address technical questions that may be impossible for financial institutions to resolve;
  • Support recent efforts to allow residential mortgages held in portfolio to be considered Qualified Mortgages for the purposes of the CFPB’s lending rules;and
  • Direct the Government Accountability Office (GAO) to determine the impacts of the Foreign Account Tax Compliance Act (FATCA) on U.S. citizens living abroad. The GAO must also make recommendations on FATCA implementations, and both must be done within 180 days of enactment of the bill.

Additional information on H.R. 5485 can be found in News Now’s previous coverage