Removing Barriers Blog

House Passes FSGG Appropriations Act with CUNA-Supported Regulatory Relief
Posted July 19, 2018 by Chandler Schuette

Earlier today, the House passed H.R. 6147 - the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 by a vote of 217 - 199.  Prior to the vote, CUNA wrote to Speaker Paul Ryan and Ranking Member Pelosi in support of the legislation.

"We thank House leadership for passing regulatory relief measures that will greatly benefit credit unions," said CUNA President/CEO Jim Nussle. "CUNA has maintained since NCUA first proposed the risk-based capital rule that it is a solution in search of a problem, so we support any legislative means to reduce the rule’s impact on credit unions."   

If enacted, this legislation will delay the effective date of the NCUA's risk-based capital rule to January 2021 and provide funding for the Treasury's Community Development Financial Institutions (CDFI) Fund, which is used for grants and awards to foster growth, achieve sustainability and revitalize communities.

The CUNA-supported bills in the FSGG legislation would:

  • Remove certain premiums and title insurance from the points and fees calculation, the  Mortgage Choice Act ;
  • Provide credit unions sufficient flexibility to ensure that members have access to the privacy policy pertinent to their relationship with the credit union, Privacy Notification Technical Clarification Act;
  • Amend the Real Estate Settlement Procedures Act to require the Bureau of Consumer Financial Protection to allow the accurate disclosure of title insurance premiums and any potential available discounts to home-buyers, the  TRID Improvement Act ;
  • Repeal NCUA’s risk-based capital rule, the Common Sense Credit Union Capital Relief Act; and
  • Create an independent inspector general at the bureau the Bureau of Consumer Financial Protection–Inspector General Reform Act.

In addition to the regulatory relief provisions included, CUNA also wrote in strong support of the Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF).

CUNA strongly supports the legislation’s funding level of $2 million for NCUA’s Community Development Revolving Loan Fund, which assists credit unions serving low-income communities.

CUNA also supports the loan limit designations for the Small Businesses Administration’s 7(a) program (set at $30 billion) and 504 loan program (set at $7.5 billion).

Loans made under those programs can be partially guaranteed by the government, and the guaranteed portions do not count against a credit union’s statutory cap on member business lending, set at 12.25% of assets.

On behalf of America's credit unions and their 110 million members, CUNA will continue to advocate for common sense regulations and for full funding of the CDFI and CDRLF.