CUNA backs bills to expand financial access, keep CLF changes

May 18, 2021

CUNA wrote in support of three bills and offered additional legislative suggestions in a letter sent to the House Financial Services Committee. The committee will hear testimony from federal regulators, including NCUA Chairman Todd Harper, at the hearing, and discuss several pieces of legislation.

The letter also reiterated CUNA’s request that NCUA act quickly to finalize its proposals on capitalization of interest and transition to the current expected credit loss (CECL) methodology.

CUNA supports the following bills under consideration:

  • The Expanding Financial Access for Underserved Communities Act, which would:
    • Allow all federal credit unions to add underserved areas to their field of membership;
    • Exempt business loans made by credit unions to businesses in low-income areas from the credit union member business lending cap; and
    • Expand the definition of low-income credit union to include any area that is more than 10 miles from the nearest branch of a financial institution.
  • The Central Liquidity Facility (CLF) Enhancement Act, which would make permanent changes made to the NCUA’s CLF by the CARES Act in 2020. These changes expanded the CLF’s borrowing authority and made it easier for credit unions to join the CLF through their corporate credit union.
  • H.J. Res. 35, Resolution of Disapproval on the Office of the Comptroller of the Currency’s “true lender” proposal. The Senate passed a similar, CUNA-backed resolution last week.

CUNA also shared feedback on several other policies under the committee’s jurisdiction, including legislation concerning CUSO oversight, prompt corrective action, and Federal Credit Union Act modernization.

The letter also countered falsehoods spread by banking trade associations and provided an update on credit unions’ diversity, equity, and inclusion journey.