Removing Barriers Blog

House Committee Passes Financial CHOICE Act in Markup
Posted September 13, 2016 by CUNA Advocacy

The House Financial Services Committee today marked up Chairman Hensarling’s (R-Texas) Dodd-Frank reform package, the Financial CHOICE Act.  The vote was 30-26; all Democrats present and Bruce Poliquin (R-Maine) voted against the bill, while all other Republicans present voted in favor.   

The bill would also prohibit enforcement of the Department of Labor's recent ERISA fiduciary rule, and restrict the DOL from promulgating any replacement fiduciary rule until after the Securities and Exchange Commission issues its final rule on this subject. 

CUNA President and CEO Jim Nussle testified back in July before the Committee on Title I of the legislation, which would allow regulatory relief for credit unions and banks maintaining a leverage ratio over ten percent.  We also submitted comments on the legislation and a letter in advance of the markup. 

Several of the proposals in the CHOICE Act that we support are: 

  • Repealing the Durbin Amendment on debit interchange fee price controls;  

  • Placing the CFPB under the appropriations process and turning it into a five person commission;  

  • Creating regulatory relief on several housing issues; and  

  • Extending the examination cycle for well-funded, well-managed credit unions. 

However, we do oppose language that would put NCUA under the appropriations process, and a section that would allow S&Ls to operate as national banks. 

Although the bill was favorably passed out of Committee, the whole House is unlikely to give it a vote during this Congress.  Either way, we'll continue working with Members of Congress to achieve meaningful regulatory relief for credit unions, both this year and into the 115th Congress.