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Regulatory Reform Approved on Capitol Hill

Thu, Sep 22, 2016

Columbia, Maryland

Last Tuesday, the House Financial Services Committee voted 36-26 to approve the Financial CHOICE Act, which contains a number of regulatory reform measures supported by our Association and system-wide.  All Republicans voted for the bill, except Rep. Bruce Poliquin (R-ME) who voted against it.  All Democrats voted against the bill.

Some provisions in the bill include:

-- Expand the NCUA Board from three to five members;

-- Subject the NCUA Budget to Congressional appropriations approval;

-- Require annual budget hearings for NCUA;

-- Provide greater transparency on the overhead transfer rate; and

-- Require 18-month exam cycles for well-run credit unions with under $1 billion in assets.

The bill also contains language to repeal the “Durbin Amendment” impacting interchange rates which was part of the much larger Dodd-Frank Act of 2009.  

No amendments were offered at ‘mark-up,’ which means the Durbin repeal language stays in. While a positive development, many on Capitol Hill do not see the legislation passing and progressing forward.  We are soon heading into a Congressional recess (possibly as early as this week) breaking for the November elections. However, but it should be seen as a step in the right direction heading into the New Year and a new Congress.

Contact: Glen Cooney, 443-325-0775, gcooney@mddccua.org