House Schedule: Busy Week for Credit Union Legislation

Multiple bills affecting credit unions will be considered this week on the House floor and by the House Financial Services Committee.

It’s sometimes said that Congress only moves fast when members “smell the jet fumes” as they prepare for a recess.

If that’s the case, the House side of Capitol Hill must really stink this week.

The House is scheduled to consider 27 bills under an expedited process, which involves suspending House rules and requires two-thirds of voting for passage of any legislation. Four of the bills would directly affect credit unions.

Additionally, on Wednesday, the House Financial Services Committee (HFSC) has scheduled a markup for several separate bills; again, many would have an impact on credit unions.

House Legislation Impacting Credit Unions

On the floor, the House is expected to consider legislation that would:

–Permanently reauthorize the Community Development Financial Institution (CDFI) Bond Guarantee Program. H.R. 7733 would reduce the minimum issuance amount from $100 million to $25 million as well as reduce the amount allowed to be held in a CDFI’s relending account.

–Allow a notary public to remotely notarize electronic documents. H.R. 3962 also would require states and courts to accept remote notarization of documents.

–Require banking regulators, including the National Credit Union Administration, to study challenges facing entities that want to become chartered depository institutions. The bill, H.R. 4586, also would require the agencies to develop a strategic plan to promote the chartering of Minority Depository Institutions that could be certified as CDFIs.

–Require timely production to Congress of documents required under the Bank Secrecy Act. H.R. 7734 would require banks and credit unions to turn over those documents to Congress when a subpoena is issued.

HFSC Legislation Impacting Credit Unions

On Wednesday, the House Financial Services Committee is scheduled to consider bills that would:

–Require financial institutions to provide a disclosure of overdraft fees and to notify customers that if they do not opt into an overdraft program, their transaction could be rejected. The bill would also limit the number of overdraft fees a financial institution may charge. H.R. 4277 would further authorize the Consumer Financial Protection Bureau to issue rules within 18 months of the enactment of the legislation. The committee had been scheduled to consider this bill during an earlier markup, but Democrats did not have sufficient votes to pass it.

–Allow the boards of well-managed credit unions to meet less frequently. Under H.R. 6889, a newly chartered credit union would be required to meet at least six times a year. Credit unions with lower ratings would still be required to meet monthly.

–Require lenders to consider additional credit worthiness information that is not typically found on a credit report in the underwriting process. H.R. 8485 would allow that information to be used when a consumer requests it.

Stay tuned...