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House and Financial Services Committee Pass Key CU Legislation
Tuesday, December 19, 2017 6:40 AM

In the legislative run-up to year-end, credit unions have seen wins on the House floor as well as in the House Financial Services Committee. The House last week passed three pieces of legislation supported by CUNA and Cornerstone that, if enacted, will reduce the regulatory burdens faced by America’s credit unions.

H.R. 3971, The Community Institution Mortgage Relief Act of 2017, makes important changes to the Truth in Lending Act (TILA) and the Real Estate Settlements Procedures Act (RESPA) to reduce the burden on small financial institutions. Specifically, it would exempt: 

  • Mortgage loans made by financial institutions under $10 billion in assets from the Truth in Lending Act’s escrow requirements; and 
  • Mortgage servicers of fewer than 20,000 mortgages annually from the requirements of Section 6 of the Real Estate Settlement Procedures Act. 

H.R. 2706, The Financial Institution Consumer Protection Act, specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless: 

  • The agency has a material reason for doing so; and 
  • That reason is not based solely on reputational risk. 

H.R. 2396The Privacy Notice Technical Clarification Act, updates the Gramm-Leach-Bliley Act to update the exception for certain annual notices provided by financial institutions.   

Additionally, the House Financial Services Committee completed its markup of 15 regulatory relief bills, along with passage of three pieces of legislation back by CUNA and Cornerstone, as follows:  

  • H.R. 1457, the Making Online Banking Initiation Legal and Easy Act of 2017, which would allow financial institutions to record personal information from a copy of an individual's identification for the purpose of verifying the authenticity of the identification.   
  • H.R. 4464, the Common Sense Credit Union Capital Relief Act of 2017, which would repeal NCUA’s risk-based capital rule.   
  • H.R. 4545, the Financial Institutions Examination Fairness and Reform Act of 2017, which would bring fairness to the exam process by providing for an independent appeals process at the Federal Financial Institutions Examination Council.