House Passes Reg Overhaul Bill, as Nussle & Berger Say They Want More

The House on Tuesday passed S. 2155, the Senate version of a regulatory overhaul bill, but leaders of the two national credit union trade groups say they want additional changes to Dodd-Frank this year.

In separate interviews with CU Times, CUNA President/CEO Jim Nussle and NAFCU President/CEO B. Dan Berger hailed passage of the bill and conceded that the bill does not accomplish all of their goals.

The House passed the measure, 258-195, sending the bill to President Trump for his signature. The administration has indicated that the president will sign the measure.

“This isn’t the biggest thing that has ever passed the Congress, but it’s big because nothing has passed this Congress,” Nussle told CU Times.

“I think it’s a very big deal,” Berger told CU Times, but added, “It’s just a bite of the apple. I think other things are possible this year.”

The bill is far more modest than a House-passed measure, the Financial CHOICE Act, crafted by House Financial Services Chairman Jeb. Hensarling (R-Texas).

That measure calls for major changes to the Dodd-Frank Act, including provisions that would have greatly decreased the CFPB’s powers. S. 2155 makes no major changes to  the CFPB.

Nussle and Berger said they still favor converting the CFPB from an agency controlled by a single director to one that is run by a commission.

Hensarling’s bill passed the House with no Democratic support, while Senate Banking Chairman Mike Crapo (R-Id.) worked on his bill with moderate Democratic members of his panel.

Crapo’s bill was supported by 33 Democrats on Tuesday.

S. 2155 contains a credit union-specific provision that provides that a one-to-four family dwelling that is not the primary residence of a member will not be considered a business loan under the Credit Union Act.

That provision will help 1,700 credit unions expand lending opportunities, Berger said.

Nussle said the provision simply provides credit unions with parity with banks, adding that “It shouldn’t have taken all of this effort.”

The bill also includes a provision that “provides that certain mortgage loans that are originated and retained in portfolio by an insured depository institution or an insured credit union with less than $10 billion in total consolidated assets will be deemed qualified mortgages under the Truth in Lending Act, while maintaining consumer protections,” according to a summary of the bill.

Nussle, a former House Republican from Iowa, said passage of S. 2155 demonstrates “that we can actually pass legislation through a Congress that is in disfunction.”

He added that passage involved “teaching members how to be members of Congress and how a bill becomes law.”

Nussle and Berger said that the credit union trade groups are encouraging members of Congress to tuck regulatory changes into other high-priority legislation.

For instance, House legislation that would update the Committee on Foreign Investment in the United States also would delay the NCUA’s risk-based capital rule. And a House appropriations measure funding Justice Department programs also includes a provision that would require the department to issue guidelines on Americans with Disabilities Act requirements for website access.

The two men said they are looking for other legislation that could be used in similar ways.

“That’s what we’re working on, yes,” Nussle said.

Berger agreed, saying that when it comes to proposals that NAFCU favors, “You use any vehicle or channel to get it passed.”