Trades Respond to Bills on Everything from Delaying CECL to Loan Limits to Serving Military

WASHINGTON–The House and Senate worked through a flurry of legislation of interest to credit unions yesterday, with the trade groups weighing in on bills that would delay implementation of CECL to giving NCUA authority to extend loan limits to service to military bases.

Both NAFCU and CUNA expressed support for the CECL Consumer Impact and Study Bill of 2019 (H.R. 3182), which was introduced in the House. The bill would require the Financial Accounting Standards Board to delay the implementation date of its new Current Expected Credit Loss (CECL) standard until federal agencies complete a study on its economic impact.

Berger Dan

Dan Berger

"We thank Representatives Vicente Gonzalez, David Scott, Brad Sherman, Josh Gottheimer, Henry Cuellar, Blaine Luetkemeyer, Roger Williams, French Hill, Barry Loudermilk and Ted Budd for introducing bipartisan legislation that would halt the implementation of CECL until a joint regulator study can be completed to fully understand its economic impact on credit unions and their 117 million members," said NAFCU President and CEO Dan Berger. "While NAFCU urges credit unions to prepare for CECL's 2022 implementation date, we will continue to advocate for credit unions to be fully exempt from CECL, as they did not take part in the poor lending practices that led to the financial crisis."

Need for More Resources

Meanwhile, CUNA President/CEO Jim Nussle wrote to the sponsors of the CECL Stop & Study. CUNA noted it has been calling on NCUA to provide credit unions with more resources to assist with CECL implementation. 

Nussle’s letter can be found here here 

Separately, CUNA sent letters for the record to Congress ahead of the House Committee on Appropriations markup of the Financial Services and General Government (FSGG) Act for Fiscal Year 2020, the House Financial Services Subcommittee on Oversight and Investigations hearing on student loan servicing, and the Senate Banking Committee’s hearing on data brokers.  

Multiple Messages for Congress

Here’s what CUNA told Congress:

  • In a letter to the Subcommittee on Oversight and Investigations, CUNA said as more credit unions are finding ways to support student borrowers through private loans, a common barrier for many federal credit unions from entering the student lending sector is the 15-year loan maturity limit. CUNA said it supports H.R. 1661, which would NCUA with flexibility to increase Federal credit union loan maturities. The full letter can be found here.  
    • CUNA told the House Appropriations Committee it supports appropriations levels for the two credit union-related funds in the Financial Services and General Government (FSGG) Act for Fiscal Year 2020. The legislation allocates $300 million for the Treasury’s Community Development Financial Institution (CDFI) Fund, a $50 million increase over last year. The full letter can be found here 
      Nussle Jim

      Jim Nussle

    • CUNA wrote to the House Armed Services Committee and urged its members to reject language in fiscal year 2020 National Defense Authorization Act, which would expand exemptions from costs related to leases, utilities and services on military bases for financial institutions. 
  • The Senate Banking Committee was told by CUNA it needs to act to ensure greater cybersecurity. The letter can be read here 

CUNA noted that under the Federal Credit Union Act of 1996, the Department of Defense is granted the discretionary authority to waive the cost of credit union land leases, as negotiated between each military installation’s base commander and a given credit union. 

“This exemption is restricted in scope to credit unions whose field of membership is at least 95% composed of individuals who are or were at the time of admission into the credit union military personnel, federal employees, or family of those who are or were,” CUNA stated.

In the letter, CUNA President/CEO Jim Nussle said, “As the only member-owned, not-for-profit, democratically controlled option in financial services, credit unions' mission is to promote thrift and provide access to credit for members. It is a mission they have fulfilled for more than 70 years and it’s a mission that remains unchanged today. Credit unions are focused on ensuring the financial readiness of our service members and their families.”

Four Regulatory Relief Bills

CUNA also wrote to the House Committee on Financial Services regarding four regulatory relief bills to set to be marked up this week, including: 

  • The Corporate Transparency Act of 2019 (H.R. 2513), which would address the redundancies, unnecessary burdens, and opportunities for efficiencies within the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) statutory framework. CUNA notes that regulatory regimes like BSA should be a scalable framework to help smaller institutions
  • The National Flood Insurance Program (NFIP) Administration Reform Act of 2019 (H.R. 3111), which would make administrative reforms to the NFIP
  • The NFIP Reauthorization Act of 2019 (H.R. 3167), which would extend NFIP through Sept. 30, 2024. While CUNA supports this bill and H.R. 3111, it also called for a long-term, sustainable solution to restore certainty to the market 
  • The House Financial Literacy Act of 2019 (H.R. 2162), which would require the Secretary of the Department of Housing and Urban Development to provide a 25-basis point discount in FHA insurance premiums for first-time homebuyers that complete a financial counseling course. 

 

 

 

 

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Copyright Year: 2019
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URL: http://www.cutoday.info/Fresh-Today/Trades-Respond-to-Bills-on-Everything-from-Delaying-CECL-to-Loan-Limits-to-Serving-Military