Removing Barriers Blog

HFSC holds hearings with prudential regulators
Posted May 19, 2021 by CUNA Advocacy

The House Financial Services Committee held a hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions,” where NCUA Chairman Todd Harper testified.  Prior to the hearing, CUNA shared concerns and gave input on a slate of issues including; proposed legislation granting NCUA oversight of all credit union service organizations (CUSOs) and vendors, providing temporary flexibility to NCUA to offer forbearance from prompt corrective action (PCA), and modernizations to the Federal Credit Union Act.

Under consideration was the Expanding Financial Access for Underserved Communities Act, which was negotiated together by CUNA and the California and Nevada Credit Union League. 

The Expanding Financial Access for Underserved Communities Act would allow all Federal Credit Unions to add underserved areas to their field of membership and exempt business loans made by credit unions in underserved areas from the credit union member business lending cap. Furthermore, the legislation expands the definition of an underserved area to include any area that is more than 10 miles from the nearest branch of a financial institution.

During the hearing Chairman Harper expressed support for the legislation noting that the “NCUA Board and its members have long called upon Congress to allow not just multiple common bond credit unions to add underserved areas but also single common bond and community charters.” 

While this legislation is far from the President’s desk, we are pleased that this is a great first step to address financial inclusion for underserved and unbanked persons. We thank Chairwoman Waters, Chairman Harper, and the California and Nevada Credit Union League for their collaboration, leadership, and support of this important legislation.

The letter also sets the record straight on the myriad banker falsehoods relating to bank sales to credit unions, details the credit union movement’s diversity, equity, and inclusion journey, and provides feedback on legislation to expand fields of membership and the Central Liquidity Facility.