Removing Barriers Blog

Big Week for Regulatory Relief – House and Committee Each Pass Three Pieces of Legislation
Posted December 14, 2017 by CUNA Advocacy

This week credit unions saw wins on the House floor as well as in the House Financial Services Committee. 

On the floor, the House passed three pieces of CUNA-backed legislation that if enacted will reduce the regulatory burdens faced by America’s credit unions.

H.R. 3971 The Community Institution Mortgage Relief Act of 2017, makes important changes to both the Truth In Lending Act (TILA) and the Real Estate Settlements Procedures Act (RESPA) to reduce the burden on small financial institutions. Specifically, it would exempt: 

  • Mortgage loans made by financial institutions under $10 billion in assets from the Truth in Lending Act’s escrow requirements; and 
  • Mortgage servicers that service fewer than 20,000 mortgages annually from the requirements of Section 6 of the Real Estate Settlement Procedures Act. 

H.R. 2706  The Financial Institution Consumer Protection Act, this legislation specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless: 

  • The agency has a material reason for doing so; and 
  • That reason is not based solely on reputational risk. 

H.R. 2396  The Privacy Notice Technical Clarification Act, this legislation updates the Gramm-Leach-Bliley Act to update the exception for certain annual notices provided by financial institutions.   

Yesterday, the House Financial Services Committee completed its two-day markup of 15 regulatory relief bills.  The Committee passed three CUNA-backed pieces of legislation.  

H.R. 1457 – the Making Online Banking Initiation Legal and Easy Act of 2017, which would allow financial institutions to record personal information from a copy of an individual's identification for the purpose of verifying the authenticity of the identification.   

H.R. 4464 – the Common Sense Credit Union Capital Relief Act of 2017, which would repeal NCUA’s risk-based capital rule.   

H.R. 4545 – the Financial Institutions Examination Fairness and Reform Act of 2017, which would bring fairness to the exam process by providing for an independent appeals process at the Federal Financial Institutions Examination Council.   

On behalf of America’s credit unions and their 110 million members, CUNA thanks the House and Committee leadership for their continued work to reduce the regulatory burdens faced by credit unions.  CUNA will continue to work with both the House and Senate to ensure common sense regulations are signed into law.