WASHINGTON (11/11/13, UPDATED, 5:04 a.m ET)--The House Financial Services Committee announced that it will mark up a bill Thursday on a credit union regulatory relief measure supported by the Credit Union National Association, one that would extend share insurance coverage to trust accounts held in the name of nonmembers.
The bill, expected to be introduced next week by Rep. Ed Royce (R-Calif.), would rectify the disparate treatment given such accounts at credit unions. In 2008, the National Credit Union Administration issued an opinion letter on insurance coverage on Interest on Lawyers' Trust Accounts (IOLTA). The accounts are those set up by lawyers at a credit union or bank to hold funds for their clients. Often, the interest accrued is paid to the state or the state bar association to fund legal services.
CUNA has noted that the situation puts credit unions at a disadvantage to attract this type of account if all the clients must be members, rather than just the attorney establishing the account. CUNA has discussed the issue both on the regulatory and legislative fronts.
Also to be considered at the Thursday markup is H.R. 3329, a bill introduced by Rep. Blaine Luetkemeyer (R-Mo.) to increase from $500 million to $1 billion the cap on the application of the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors.
"We hope that the legislation considered on Thursday will be the first of several regulatory relief bills to move through the committee, and we are very appreciative of Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.) for their leadership in this process," noted CUNA Senior Vice President of Legislative Affairs Ryan Donovan Friday.