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CDRLF Gains Back Full Funding in FSGG Markup
Monday, July 17, 2017 6:50 AM

Credit unions scored critical wins Thursday in the House Appropriations Committee’s markup of the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2018.

The bill includes provisions that were in HR 10, the Financial CHOICE Act, and offers credit unions significant regulatory relief. The measure brings the Consumer Financial Protection Bureau under the appropriations process and reforms CFPB’s Unfair, Deceptive, or Abusive Acts Authority, and it includes other changes found in CHOICE that add more checks and balances to the CFPB rulemaking process.

The bill also restores full funding to the Community Development Revolving Loan Fund (CDRLF), which had been defunded in the initial draft. CDRLF assists credit unions serving low-income communities.

Rep. Jaime Herrera Beutler (R-Wash.) worked with Rep. Tom Graves (R-Ga.), chairman of the FSGG subcommittee, to include $2 million in the manager’s amendment to fully restore funding to the CDRLF.

Other relief provisions include the repeal of the CFPB Small Business Loan Data Collection program. It also repeals the CFPB’s authority to write rules for arbitration. In addition, the draft provides for community financial institution mortgage relief as well as safe harbor for certain loans held on portfolio.

The draft bill, however, includes several provisions of serious concern to credit unions. It puts federal banking regulators, including NCUA, under the appropriations process. CUNA opposes bringing the NCUA under the appropriations process as the money that funds NCUA comes solely from credit unions and their members.

CUNA sent a letter Thursday to Senate Financial Services and General Government (FSGG) noting that a separate, independent federal regulator and insurer is critically important to the credit union system, and the structural and mission-driven differences between credit unions and banks necessitate such a regulatory scheme.

Bill Summary

Text of Bill

Bill Report

Source: CUNA News