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Yesterday, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled, “Legislative Proposals for a More Efficient Federal Financial Regulatory Regime.” Prior to the hearing, CUNA sent a letter to Chairman Luetkemeyer and Ranking Member Clay outlining CUNA’s position on three of the bills that were discussed during the hearing.
During the hearing, Members and witnesses took the opportunity to consider legislative proposals with the intent to streamline regulatory requirements and eliminate inefficiencies, while also maintaining consumer safeguards. As mentioned in CUNA’s letter, America’s credit unions offered support of three of the bills discussed during the hearing.
H.R. 2359, the “FCRA Liability Harmonization Act” – This legislation would create a more appropriate balance by capping the amount of FCRA statutory damages, which would align them with many other financial consumer protection laws.
The “Community Institution Mortgage Relief Act of 2017” – The proposal would exempt mortgage loans made by financial institutions under $50 billion in assets from RESPA’s escrow requirements; and, the legislation would also exempt mortgage servicers that service fewer than 30,000 mortgages annually from the requirements of Section 6 of RESPA.
The “TRID Improvement Act of 2017” – This proposal would provide a reasonable hold- harmless period for enforcement of the CFPB’s TILA-RESPA Integrated Disclosures (TRID) rule for those that make good-faith efforts to comply.
A few highlights from Members on the Committee include:
Rep. Barry Loudermilk (R-GA) said his legislation, the FCRA Liability Harmonization Act, would strike a fair balance that is just like every other financial services consumer protection act already enacted. He emphasized that no individual lawsuits would be addressed under the bill and that individuals will still have the opportunity to receive damages.
Rep. Claudia Tenney (R-NY) noted that her legislation, the Community Institution Mortgage Relief Act, would offer vital relief for small institutions that are struggling under the current regulatory framework. She spoke to the importance of community financial institutions that rely on relationship banking and provide capital to small businesses.
Rep. French Hill (R-AK) in regards to the TRID Improvement Act, noted concern with the lack of clear regulatory guidance emerging from the CFPB, specifically pertaining to TILA and RESPA and spoke to the importance of enacting the legislation to provide additional clarity with statutory compliance.
CUNA appreciates the Subcommittee’s interest in reducing the regulatory burden faced by credit unions and other small financial instructions and will continue to urge Congress to enact meaningful regulatory reform.
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