Press
NAFCU letter to HFSC SC on financial institutions and consumer credit ahead of today’s hearing, “Examining Legislative Proposals to Preserve Consumer Choice and Financial Independence”
(June 10, 2015) —
The Honorable Randy Neugebauer
Chairman
House Financial Services Committee
Subcommittee on Financial Institutions & Consumer Credit
United States House of Representatives
Washington, D.C. 20515
The Honorable Wm. Lacy Clay
Ranking Member
House Financial Services Committee
Subcommittee on Financial Institutions & Consumer Credit
United States House of Representatives
Washington, D.C. 20515
Re: “Examining Legislative Proposals to Preserve Consumer Choice and
Financial Independence”
Dear Chairman Neugebauer and Ranking Member Clay:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association that exclusively represents the interests of our nations federally chartered credit unions, I write regarding tomorrow’s legislative hearing, “Examining Legislative Proposals to Preserve Consumer Choice and Financial Independence.” NAFCU appreciates the subcommittee’s review of these important measures, many of which would impact credit unions and their members.
Of particular interest to credit unions, tomorrow the subcommittee will discuss bipartisan legislation, the National Credit Union Administration Budget Transparency Act (H.R. 2287), introduced by Representatives Mulvaney (R-SC) and Sinema (D-AZ). NAFCU strongly supports this important commonsense legislation that would require the National Credit Union Administration (NCUA) to hold a public hearing on its annual budget and publish a draft of the budget for public consumption in the Federal Register. Given that credit unions fund the agency through various assessments, NAFCU supports gaining a clear picture of the agency’s expenditures through this simple act of transparency. Importantly, holding a public hearing on the budget was standard practice at the NCUA until 2009. It is also worth noting that nothing is this measure would prevent NCUA from obtaining the funds necessary to carry out its mission to,through regulation and supervision, provide a safe and sound credit union system.
NAFCU also supports several of the other pieces of legislation being discussed during tomorrow’s hearing, including:
Financial Product Safety Commission Act (H.R. 1266)
Introduced by Chairman Neugebauer (R-TX) this bipartisan legislation would change the leadership structure of the Consumer Financial Protection Bureau (CFPB) from a single director to a bipartisan led commission. NAFCU has long support this effort as a diversity of opinion, particularly as the new agency is in its infancy, could lead to greater discussion about CFPB initiatives and how they would ultimately impact credit unions.
Financial Institutions Examination Fairness and Reform Act (H.R. 1941)
Introduced by Representatives Westmoreland (R-GA) and Maloney (D-NY) this bipartisan legislation would provide credit unions with much needed clarity and consistency in the examination process. The bill ensures credit unions are provided with timely feedback from regulators and have ample avenues to appeal exam findings without fear of retribution. Additionally, NAFCU is keenly aware of exam cycle issues credit unions face and supports prudent timing in this regard.
Financial Institution Customer Protection Act (H.R. 766)
Introduced by Chairman Blaine Luetkemeyer (R-MO) and Representative Alcee Hastings (D-FL) this bipartisan legislation would ensure that the federal banking regulators must put into writing any suggestion to terminate a customer’s banking account in an ongoing effort to address the Department of Justice “Operation Choke Point” program.
Portfolio Lending and Mortgage Access Act (H.R. 1210)
Introduced by Representative Andy Barr (R-KY) this legislation would make meaningful change to the CFPB’s Qualified Mortgage (QM) definition under the ability-to-repay rule. Under the bill, residential mortgage loans held in portfolio by credit unions and other lending would qualify for the QM safe harbor. Holding loans in portfolio is the ultimate form of risk retention.
Legislation related to integrated disclosure requirements for mortgage loans (H.R. 2213)
Introduced by Vice Chairman Pearce (R-NM) and Representative Sherman (D-CA) this legislation would provide a reasonable hold-harmless period for enforcement of the CFPB’s TILA-RESPA Integrated Disclosures regulation for those who make good faith efforts to comply. While NAFCU appreciates the CFPB’s indication that they will be sensitive to credit unions and other institutions that make good-faith efforts, this legislation would take an additional step to ensure a smooth transition period for good actors.
Again, thank you for your continued focus on regulatory relief for community based financial institutions including credit unions. We look forward to continuing to work with the subcommittee on these important pieces of legislation and other issues as the 114th Congress continues. If my staff or I can be of assistance to you, or if you have any questions regarding this issue, please feel free to contact myself, or NAFCU’s Director of Legislative Affairs, Jillian Pevo, at 703-842-2836.
Sincerely,
Brad Thaler
Vice President of Legislative Affairs
cc: Members of the House Financial Services Subcommittee on Financial Institutions
and Consumer Credit