Removing Barriers Blog

First Look at Credit Union Provisions in Omnibus Bill
Posted December 16, 2015 by CUNA Advocacy

Our advocacy team is currently in the process of going through the recently released omnibus package to determine its impact on credit unions.  This is an early analysis of “things we were looking for.”  It’s possible we’ve missed something or that we’ll uncover something as we dig deeper… but key initial take-aways are:

  1. There is no meaningful regulatory relief in the omnibus for credit unions or banks.
  2. Cyber security aimed at improving information sharing is included.
  3. Key funds that credit union support saw funding levels maintained or increased.

Here are some of our initial reads:

  • The omnibus does include a compromise version of the cyber-security bill we’ve been supportive of.  We need to dig into the details of the compromise, but it appears that a problematic provision is not included.  Don’t take this as a win just yet, but we think the cyber language is positive.
  • It also includes language requiring the banking regulators (including NCUA) to conduct a joint study of the appropriate capital requirements for mortgage servicing assets.  This language is essentially H.R. 1408, which we have supported.
  • NCUA’s Community Development Revolving Loan Program is funded at $2 million, which is the same level as it was funded for FY 2015.
  • Treasury’s Community Development Financial Institution Fund is funded at $233.5 million, which is 3.5 million more than FY 2015.
  • USAID’s Cooperative Development Program is funded at $11 million, which is $500,000 more than FY 2015.
  • There omnibus also includes a provision that may subject CFPB’s advisory committees to the Federal Advisory Committee Act, which would subject them to sunshine and other transparency requirements.  We’re evaluating the impact of that proposal.

We had heard throughout yesterday that negotiations were taking place on financial services issues, but leaders were unable to reach agreement on these matters.  So, the omnibus does not include the Senate regulatory relief provisions in the Shelby bill that we had hoped for (aside from the mortgage servicing study).  It also does not address the fiduciary rule from the Department of Labor as we had hoped it would.  

So while we did not get additional relief, the good news is that it does not appear banks got anything in this bill either.  They were pursuing a fix to the cut in the fed dividend, which is not included in the bill.