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Senate Economic Growth, Regulatory Relief and Consumer Protection Bill

Mon, Mar 12, 2018

Last week, the Senate voted on a motion to proceed with its consideration of S. 2155 with a 67-32 vote, with a final vote on passage potentially coming this week. While in support of credit union provisions, Maryland Senators Ben Cardin and Chris Van Hollen, voted no to the overall bill. Senator Van Hollen specifically had concerns with other provisions in the bill that helped large banks. The sizeable win from the vote earlier in the week bodes well for final passage and keeps credit union provisions such as, granting credit unions parity with banks by re-classifying residential loans for one-to four non-owner occupied units as real estate loans and increasing the threshold for Home Mortgage Disclosure Act (HMDA) reporting for insured credit unions to 500 closed-end and/or open-end lines of credit.

During last week’s discussions, several Senators quoted credit unions from their state and spoke of the need to give credit unions and other community financial institutions, as can be seen in the video below. 

 Provisions in S. 2155 include:

  • Establishing a safe harbor from certain requirements for a loan to be considered a Qualified Mortgage;
  • Rescinding the additional data points required under the Home Mortgage Disclosure Act for insured credit unions that originate fewer than 500 closed-end and/or 500 open-end lines of credit;
  • Reclassifying one-to-four unit, non-owner occupied residential loans as real estate loans, so the loan would not count against the member business lending cap;
  • Clarifying that that the same consumer protections in place with respect to mortgage lending are nonexistent for Property Assessed Clean Energy loans;
  • Removing the three-day wait period required for the combined TRID mortgage disclosure if a creditor extends to a consumer a second offer of credit with a lower annual percentage rate;
  • Requiring NCUA to make publicly available a draft of their proposed budget, hold a hearing with public notice during which this draft would be discussed and solicit and consider public comment about the draft budget;
  • Providing a safe harbor for properly trained financial employees who report alleged elder financial abuse; and
  • Requiring the U.S. Department of Treasury to conduct a study on the risks that cyber threats may pose to financial institutions.

The MD|DC Credit Union Association continues to closely monitor the progress of S. 2155 and is optimistic that credit union provisions will remain intact upon final passage.


Source: MD|DC CUA & CUNA News