WASHINGTON – Credit union lobbyists were working with members of the House Rules Committee late last night on efforts to limit the impact on credit unions of a massive financial services bill, which the House will begin to debate this afternoon.
"Credit unions did not cause the crisis, so credit unions shouldn’t be required to pay," said Ryan Donovan, senior lobbyist for CUNA, of efforts to get credit unions exempted from the Consumer Financial Protection Agency, the proposed systemic risk regulator and other provisions of the massive bill, which will combine eight smaller bills.
Among the major provisions of the bills are: creation of a consumer protection agency; creation of a systemic risk regulator; regulation and oversight of financial derivatives; combination of banking regulators; regulation of Wall Street rating agencies; reform to the Sarbanes-Oxley Act; and, creation of a federal office of insurance regulation.
Among the almost 250 amendments being reviewed last night for inclusion in the 1,200-page bill was a so-called cramdown provision being fought by CUNA and NAFCU that would allow bankruptcy courts to amend the terms of at-risk mortgages.
More than 600 credit union executives were blanketing Capitol Hill yesterday at the invitation of CUNA and the state leagues to lobby for, among other things, a credit union exemption form the consumer protection agency. The Rules Committee was deciding last night whether to attach amendments that would exempt all credit unions under $10 billion from being examined by the new agency, and another measure that would exempt all credit unions from both examinations and enforcement, leaving those tasks to NCUA or their state credit union supervisors.
"NAFCU continues to have credit unions call their members of Congress. And we continue to visit offices, wearing out the shoe-leather letting the members of Congress know what amendments we support and oppose," said NAFCU chief lobbyist Dan Berger, who has been working for the full credit union exemption from the consumer agency oversight.
CUNA and NAFCU were also concerned about a proposed amendment that would create a new mutual savings bank charter, as many traditional S&Ls are expected to be wound down if their regulator, the Office of Thrift Supervision, is eliminated, as planned.
The credit union lobby was also watching proposed amendments on student loans and secondary mortgage market sales, which would require loan originators to retain about 5% of originations sold on the secondary market.
CUNA’s Donovan said it was interested in approximately 25 to 30 of the almost 250 amendments being considered last night.
