Page 6 - Michigan Credit Union League: 2018 Contact Q3

UNDER THE DOME

S. 2155 PASSED —
WHERE DO WE GO FROM HERE?

On May 24, President Donald Trump signed into law cloud of liability” for the credit union’s mortgage oper-

S. 2155 — the Economic Growth, Regulatory Relief and ations and “simplifies HMDA reporting closer to what it

Consumer Protection Act — which moved out of the U.S. was in the past.”

House of Representatives on May 22 by a vote of 258-159.

Buckley also said the credit union movement’s next legisla-

The president’s signing marked the first meaningful tive objective should be updating the Federal Credit Union

regulatory relief aimed at the Dodd-Frank Wall Street Act, “including memorializing field of membership powers

Reform and Consumer Protection Act. This law reforms within NCUA and opening up trust powers to all credit

some of the one-size-fits-all regulatory requirements unions.” Among other next steps, the Gerber CEO would

put in place a decade ago to better account for smaller like to see credit unions exempt from Consumer Financial

financial institutions. Protection Bureau (CFPB) requirements and examinations,

and have a secondary capital regimen established.

There are several provisions included that will make it

easier for credit unions to serve their members, includ- “The passage of the Economic Growth, Regulatory Relief

ing treatment of non-QM mortgages held in portfolio as and Consumer Protection Act, S. 2155, is a welcomed

QM loans, changes to Home Mortgage Disclosure Act relief for our community-focused, small-town credit

(HMDA) reporting requirements, and residential classi- unions,” said Journey Federal Credit Union interim CEO

fication for one-to-four unit, non-owner occupied real Patrick Hunt. “At Journey, we have struggled to keep up

estate properties. with increasing regulatory and compliance demands due

to limited resources and the allocation of our resources.”

Passage of the bill has been years in the making and

was only possible because of the persistence of credit “We’ve closely analyzed our line of products and services

union advocates in Michigan and across the country. and the impact those products and services have on

The Michigan Credit Union League (MCUL) is especially resources dedicated to regulatory and compliance. Due

pleased with the bill’s bipartisan support, especially in to increased regulatory and compliance demands, we

the Senate, where both Sens. Debbie Stabenow (D-MI) have had to decide the amount of resources dedicated

and Gary Peters (D-MI) joined their Republican colleagues to potential products and services, and at times it was a

in moving the bill out of that chamber. Sen. Peters was sound business decision to not offer some products and

a cosponsor of the bill and Sen. Stabenow was a key services due to the demand of resources,” Hunt continued.

player behind the scenes as the bill worked its way out

of the Senate. S. 2155 will impact Journey in numerous ways, but

the CEO said its critical impact will be in freeing up

MCUL talked to a few credit union CEOs to find out how resources by “right-sizing” regulations for smaller asset

the passage of S. 2155 is positively affecting their day- credit unions and other financial institutions. The credit

to-day operations as well as what they think the next union will now be able to review their product line and

step in regulatory reform should be. possibly expand their loan, mortgage and other prod-

uct and service offerings to members and Main Street

John Buckley, president/CEO of Gerber Federal Credit small businesses.

Union, said the passage of S. 2155 “removes a huge

6 THIRD QUARTER 2018 I CONTACT