Sen. Elizabeth Warren and other lawmakers have introduced legislation to expand the Community Reinvestment Act and address the affordable housing shortage. Just like when similar legislation was introduced in the last Congress, the Credit Union National Association and the National Association of Federally-Insured Credit Unions are in disagreement about whether to support or oppose the legislation.
House Financial Services Dems Push for $8.5 Million Boost for Credit Union Community Development Fund
Democrats on the House Financial Services Committee are asking congressional budget writers for an $8.5 million increase for the National Credit Union Administration’s Community Development Revolving Loan Fund in FY22.
That represents an increase of almost 567% over the $1.5 million the program received during the current fiscal year. The Democrats said that 40% of the CDRLF funds should be set aside for Minority Depository Institutions.
The House Small Business Committee held a hearing on the Small Business Administration’s oversight of Paycheck Protection Program. The SBA is trying to mitigate fraud in the program.
The House passed the SAFE Banking Act, which would provide banks and credit unions with a regulatory safe harbor if they provide financial services to marijuana related businesses in states where cannabis is legal. The bill also stops a possible “Operation Choke Point,” prohibiting financial regulators from requiring an institution to stop doing business with a company solely based on the company’s reputational risk. The fate of the bill in the Senate is not clear.
Congressional postal banking proponents think they can get a pilot program appropriation passed and sent to President Biden.
The House Consumer Protection and Financial Institutions Subcommittee held a hearing on trends in institutional charters that highlighted the different views on proper regulation of fintech companies and how the current regulatory arrangements may be becoming disadvantageous to credit unions. Carlos Pacheco, CEO of Premier Members Credit Union in Boulder, Colo., gave a credit union’s perspective to the legislators.
House Financial Services Chairwoman Maxine Waters (D-Calif.) is asking for a supplemental appropriation for the Treasury Department’s Financial Crimes Enforcement Network so that it can implement the anti-money laundering and Bank Secrecy Act changes Congress passed last year.
Reps. Tom Emmer (R-Minn.) and Ed Perlmutter (D-Colo.) have introduced legislation that would allow credit unions to expel members without a membership vote and provides a procedure for reinstatement.
President Biden on Tuesday signed legislation that will extend the deadline for businesses to apply for Paycheck Protection Program loans from March 31 to May 31.
The legislation, H.R. 1799, also allows the Small Business Administration to continue to process loans until June 30. This will allow loans that are in the pipeline on May 31 to be processed.
A bipartisan group of senators on Tuesday introduced legislation that would make it easier for credit unions and banks to provide financial services to marijuana-related businesses.
Sens. Jeff Merkley (D-Ore.) and Steve Daines (R-Mt.) and 27 cosponsors introduced the bill. The same bill was introduced last week in the House.