Status, Provisions of Reg Relief Bills
Regulatory Relief Bill
The bill passed by the Senate and before the House has just four provisions for CUs:
* Allows FCUs to provided check cashing and wire transfers to non-members within their fields of membership.
* Allows credit unions on federal property to continuing paying discounted leases.
* Extends the maximum allowable maturity on members business loans.
* Fix a new Financial Accounting Standards Board rule to allow CUs to continue "pooling" or capital after merging.
CU Regulatory Improvements Act
This bill, which both NAFCU and CUNA believe to be dead for this session of Congress, contains the four provisions in the Reg Relief bill plus:
* Enacts a risk-based capital system for credit unions.
* Allows privately insured credit unions to join the Federal Home Loan Bank system.
* Requires at least 20% of members vote when seeking to convert to mutual savings bank.
* Lifts the cap on member business loans from the current 12.25% of assets to 20%.
* Increases the minimum amount of a loan that would be considered a business loan (MBL).
* Exempts religious-based loans to churches and other groups from the cap on MBLs.
* Allows NCUA, instead of Congress, to determine permissible investments for credit unions.
* Allows NCUA to set maximum allowable investment in CUSOs.
* Allows FCUs to retain their select employee groups after converting to community charters.
* Exempts credit unions from pre-merger requirements on the Hart-Scott-Rodino Act.
* Treats CUs like banks and thrifts under securities laws defining brokerage services.
* Allows credit unions to make certain changes in governance bylaws;
* Eliminates certain requirements, thereby easing the way, for voluntary mergers between CUs.