HFSC passes examination fairness, 2 other reg relief bills
The House Financial Services Committee passed three CUNA-backed regulatory relief bills during a markup Wednesday. CUNA wrote to the Committee in advance of the markup, expressing support for bills that would allow easier access to financial services, repeal NCUA’s risk-based capital rule and provide an independent examination process.
“It’s always good news to see common-sense pieces of legislation advance in the process, and CUNA will continue its work to move these and other pieces of legislation that would provide needed regulatory relief forward,” said CUNA Chief Advocacy Officer Ryan Donovan.
The Financial Institutions Examination Fairness and Reform Act of 2017 (H.R. 4545) would bring fairness to the exam process by providing for an independent appeals process at the Federal Financial Institutions Examination Council.
Several legislators cited CUNA during discussions on the bill.
“According to CUNA, in 2015 more than three-quarters of credit unions said heavier regulatory and examination requirements are putting increased pressure on members,” said Rep. Nydia Velazquez (D-N.Y.). “Half of CUNA members surveyed said examiners are applying guidance and best practices as if they had the force of regulations. This type of environment hurts main street businesses and must be addressed.”
Rep. Scott Tipton (R-Colo.), who introduced the bill, cited CUNA’s 2010 examination survey that found 27% of respondents reported dissatisfaction with their most recent exam, and 21% wanted to appeal, but could not, with two-thirds of those credit unions indicating they feared retaliation.
H.R. 4545 passed with a 50-10 vote.
The Common Sense Credit Union Capital Relief Act of 2017 (H.R. 4464), which would repeal NCUA’s risk-based capital rule, passed with a 33-25 vote
The Making Online Banking Initiation Legal and Easy Act of 2017 (H.R. 1457) would allow financial institutions to record personal information from a copy of an individual's identification for the purpose of verifying the authenticity the identification.
It passed with a 50-10 vote.