The United States Senate Banking Committee voted to pass S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, thereby advancing out of Committee. Nebraska Senator Ben Sasse serves on the Banking Committee and joined the majority in voting yes to advance the bill. The League and Nebraska credit union advocates have lobbied Nebraska’s Congressional Delegation for years urging Congress to reduce the regulatory burden faced by credit unions through laws passed by Congress and rules and regulations promulgated by federal agencies and specifically the Consumer Financial Protection Bureau (CFPB). “We are pleased to have the strong support of Senator Sasse and Senator Fischer both of whom have led the charge to reduce the regulatory burden placed on our credit unions in recent years” said Scott Sullivan, President/CEO of the League.
The bill would offer relief from for credit unions in several ways.
–Change some of the requirements of the Qualified Mortgage (QM) rule for certain lenders who hold mortgage loans in portfolio. This would be very appropriate for credit unions who hold all of the risk on such loans.
–Makes changes to HMDA reporting requiements including the threshold for reporting to 500 close-end and open-end loans in a calendar year.
–Would classify credit union loans for 1-4 unit, non-owner occupied residential dwellings as residential real estate loan rather than a member business loan as it is considered today.
–Removes the three-day wait period required for combined TILA/RESPA mortgage disclosure if a creditor extends to a consumer a second offer of credit with a lower APR.
–Provides legal immunity for properly trained financial service employees who disclose concerns about financial exploitation of senior citizens.
–Requires the Treasury Department to conduct a study on the risks that cyber threats pose to financial institutions in a effort to try to better understand those risks and how to mitigate them across the financial sector.