House Panel Hints at Field of Membership Expansion Legislation

The House Financial Services Committee has given an early indication that it may consider legislation that would allow credit unions to expand their fields of membership into underserved areas.

The legislation has not been introduced yet, but it is listed among the draft bills that the committee may discuss at a Wednesday hearing that features financial regulators, including National Credit Union Administration Chairman Todd Harper. The legislation has long been sought by credit union trade groups.

IRS: Credit Unions Are Free to Seize Stimulus Payments

Despite efforts by financial industry and consumer groups to reverse the policy, the third round of Economic Impact Payments to individuals may be seized by states and creditors, a Biden Administration official has told senators.

“After a payment in the third round of EIPs is deposited into an individual’s bank account, federal law does not protect that amount from state offsets or from garnishment by creditors,” Aruna Kalyanam, the Treasury Department’s deputy assistant secretary for tax and budget in the Office of Legislative Affairs, wrote in a letter to Sens. Joe Manchin (D-W.V.) and Maggie Hassan (D-N.H.).

Credit Union Trade Groups Endorse Proposed CUSO Rule

Saying that the National Credit Union Administration’s current rule governing Credit Union Service Organizations is sorely outdated and hampers innovation, the two national credit union trade groups are calling on the agency board to finalize an updated regulation.

The NCUA has proposed a rule that would expand CUSO lending authority by allowing the organizations to originate any loan that may be made by a federal credit union.