Today, we wrote a letter to House and Senate
conferees on the highway transportation bill, in support of Section 75001 and
Section 82001 of H.R. 22 (The Surface Transportation Reauthorization and Reform Act of 2015), as passed by the House. These sections, which were offered as an
amendment to the bill by House Financial Services Committee Chairman Jeb
Hensarling, passed the House by voice vote.
Section 75001 and Section 82001 would remove two regulatory barriers by modernizing privacy notifications and permitting
privately insured credit unions to join the Federal Home Loan Bank System.
Privacy Notice
Modernization
Section 75001 is based on bipartisan legislation
(H.R. 601) introduced by Representatives Blaine Luetkemeyer (R-MO) and Brad
Sherman (D-CA). An example of
legislation that both reduces regulatory burden and improves consumer
protection, this provision would require financial institutions to send their
customers privacy policy notifications only when the privacy policy is changed.
Under current law, financial institutions must send
these notices on an annual basis, regardless of whether the policy changes. The
current requirement imposes a significant cost on credit unions and results in
very little consumer benefit. H.R. 601
has passed the House of Representatives on a number of occasions, most recently
in April 2015, by voice vote.
Permitting
Privately Insured Credit Unions to Join the Federal Home Loan Bank System
Section 82001 is based on bipartisan legislation
(H.R. 299), introduced by Representatives Steve Stivers (R-OH) and Joyce Beatty
(D-OH). This provision would correct a
drafting oversight in the Federal Home Loan Bank Act that has resulted in a
small number of privately insured credit unions being ineligible to join a
Federal Home Loan Bank (FHLB)
Unfortunately, it has meant for over two decades, a
small group of credit unions have been denied the right to even apply for membership
in the FHLB System. The House of Representatives has continuously recognized
this as a problem. In 2004, 2006, 2014
and, most recently, in April of this year, the full House passed corrective
legislation.
It is long past time for these sections to become
law, and we appreciate their inclusion in this must-pass legislation.