The Senate and the House of Representatives passed a transportation authorization bill – the Surface Transportation Reauthorization and Reform Act (H.R. 22) – on Thursday. The Senate vote count was 83-16, while the House passed the bill by a 359-65 vote. The legislation now awaits President Obama's signature.
The bill included the text of the Eliminate Privacy Notice Confusion Act (H.R. 601), an amendment by Rep. Blaine Luetkemeyer (R-Mo.). The bill provides relief to financial institutions by changing the frequency in which consumers receive privacy notices. Instead of sending privacy notices yearly, notices will only need to be sent to alert consumers of any documentation changes. Additionally, consumers will receive a privacy notice upon opening a new account.
Additionally, the package included the Helping Expand Lending Practices in Rural Communities Act (H.R. 1259) from Rep. Andy Barr (R-Ky.). This bill could prove helpful to credit unions as they deal with the CFPB's definition of “rural area,” particularly as it relates to the ability-to-repay mortgage rule.
Other provisions in the bill include giving privately insured credit unions the authority to become members of the Federal Home Loan Bank with the presence of a Government Accountability Office report that looks at private insurance. It also authorizes the FDIC to complete an 18-month examination cycle for well-run community banks. Additionally, the bill removes a provision that called for the use of Fannie Mae and Freddie Mac credit-risk guarantee fees, or g-fees, for highway funding.
“We thank the members of the House and Senate for taking these steps to provide regulatory relief in the final legislation and look forward to the president signing this bill and making these regulatory relief measures a reality for credit unions,” NAFCU President/CEO Dan Berger said in a statement.
CUNA also supported the action.
“This is a huge victory for credit unions and the over 100 million credit union members CUNA represents,” CUNA President/CEO Jim Nussle said in a statement. “CUNA has long supported modernizing privacy notification requirements, allowing privately insured credit unions to become members of the Federal Home Loan Bank system and directing the CFPB to establish a process for determining whether an area should be designated as rural which could impact the products credit unions offer.”
In response to the bill's passage, John McKechnie, partner at the Washington-based consulting firm Total Spectrum, commented, “Financial institutions overall were treated well in the transportation reauthorization bill, and credit unions should be pleased by the fact that Congress included several worthwhile credit union-friendly provisions. Now, the stage may be set for even more reg relief items in the omnibus; credit unions would benefit from language in Chairman (Richard) Shelby's bill related to (the) CFPB, mortgages, FFIEC exam standards and FHFA membership, just to name a few. I'm going to be wearing out a few pairs of shoes between now and next Friday, because the game really is afoot, and there are real opportunities to be had.”
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