In Partnership with Credit Union National Association
Go to main content
SOC - FacebookSOC - TwitterSOC - LinkedINSOC - YouTube
Michigan Credit Union League

Senate Banking Committee Passes Regulatory Relief Package, Bill Heads To Senate Floor

pol action logoOn Dec. 5, the U.S. Senate Committee on Banking, Housing and Urban Affairs passed, by a vote of 16-7, the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). The bill provides a significant level of relief to credit unions. In particular, the bill would address an issue involving one-to-four unit, non-owner occupied loans by allowing credit unions to classify such loans as residential loans, rather than business loans, as is currently required. CUNA indicates this change would result in as much as $4 billion in additional capital that credit unions could lend provided the loans would no-longer count towards a credit union’s business lending cap.

Additionally, according to analysis by CUNA, the bill provides language beneficial to credit unions that would change mortgage servicing and lending rules, help protect credit union employees who report suspected elder financial abuse and require the Treasury to study cyber risks.

Introduction of S. 2155 and its passage by the Committee is a significant development as many felt the Senate would be hard-pressed to craft and move a financial regulatory reform package, especially after talks broke down between Senate Banking Committee Chairman Michael Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH). Instead of allowing the effort to stall Chairman Crapo instead pivoted and began negotiating with a number of rank and file Democrats on the Committee to build support and momentum. The bill thus far has 10 Republican co-sponsors and 10 Democratic co-sponsors, including Michigan’s Senator Gary Peters.

MCUL and CUNA will continue to call on Congress to provide credit unions relief from burdensome regulations, including legislation that would exempt credit unions from the CFPB’s regulations and jurisdiction. We ask that you continue your outreach to your Senators on S. 2155 as well.

For any questions, please feel free to contact MCUL Manager of Federal Legislative Affairs Todd Jorns via email or direct at 734-793-3445.

Go to main navigation
Especially For:
2017-12-11 00:00:00