Time Running Out for ‘CURIA-Lite’
WASHINGTON – Today’s vote on a regulatory relief package for credit unions and banks may be the last chance credit unions have of getting their bill enacted this Congress–because of dwindling opportunities in the Senate, which also has to pass the bill.
Even if the House passes the bill today, as expected, the credit union lobby will have to win over the Senate, where a lack of enthusiasm is marked by just a handful of sponsors of the bill’s model–the CU Regulatory Improvements Act, or CURIA.
"There is some support for reg relief in the Senate, but the uncertain future in the Senate calendar does not provide a lot of opportunities for action," said Brad Thaler, senior lobbyist for NAFCU, yesterday.
"The issue in the Senate is just that they don’t have a lot of legislative days left this year," said Thaler.
Ryan Donovan, senior lobbyist for CUNA, estimated there are only 30 days left on the legislative calendar this Congress. "Those are the days when they'll be here, in Washington," he said.
If the newly styled CU, Bank and Thrift Regulatory Relief Act is passed by the House today, the bill would move over to the Senate Banking Committee, which has been reluctant to move regulatory relief so far this Congress–having passed a reg relief bill in the last Congress.
To date, only four senators have signed on to the Senate’s version of CURIA, which was only introduced last month.
The new relief bill being voted today cuts out a lot of the meat from CURIA and adds numerous provisions for banks and thrifts. Among the meat cut out is an increase in the current limits of business loans and enactment of a risk-based capital system for credit unions. It also enacts new restrictions on underserved areas to be served by credit unions.
The new bill has the most generous provisions for thrifts and would raise the limit on their commercial loans, their commercial real estate loans and eliminate their limits on auto loans and small business loans.
The new bill will also authorize thrifts and banks to offer interest on business checking accounts two years after enactment. Credit unions already have this power.
The major provisions for credit unions would: allow credit unions to retain their select employee groups after converting to a community charter; increase the amount individual credit unions can invest in a CUSO; allow NCUA, instead of Congress, to determine permissible investments for credit unions.
It would also give NCUA greater flexibility in setting the annual interest rate ceiling and ease credit union participation in the U.S. Small Business Administration's Section 504 program.
