WASHINGTON (5/20/14)--The Credit Union National Association has written to the Senate Banking Committee, urging its leadership to have the panel consider H.R. 3468 and H.R. 3584, two regulatory relief bills that will have a positive impact on credit unions.
The bills were passed by the House May 6 via a voice vote, were moved to the Senate desk and have been referred to the committee for consideration. CUNA's letter seeks the committee's approval of the two bills, thereby moving them a step closer to becoming law.
H.R. 3468, the Credit Union Share Insurance Fund Parity Act, would extend National Credit Union Share Insurance Fund coverage for trust accounts, including Interest on Lawyer Trust Accounts, even if the account includes funds owned by a credit union nonmember.
"This legislation is necessary because the National Credit Union Administration has interpreted that it does not have authority under the Federal Credit Union Act to extend such coverage," the letter reads. "This legislation would provide coverage on par with the coverage that the FDIC extends to similar accounts held by banks."
H.R. 3584, the Capital Access for Small Community Financial Institutions Act, would correct a drafting error in the Federal Home Loan Bank (FHLB) Act, one that prohibits state-chartered, privately insured credit unions from joining the FHLB system. The passage of the bill would make 132 small, privately insured credit unions eligible for FHLB membership, providing them additional opportunities to provide mortgage credit to their members.
The legislation presents no risk to the FHLB system or the taxpayer because all advances from the
FHLB system must be fully collateralized and subject to their strict uniformly applied standards," the letter reads. "In addition, the bill specifically states that the FHLB will have a superior lien position over any asset that it may hold as collateral, irrespective of how the credit union's deposits are insured."
H.R. 3584 was passed by a unanimous vote in the House, 395-0, and has a companion piece of legislation, S. 1806, in the Senate that was introduced in December by Sen. Sherrod Brown (D-Ohio).