Loosely Regulated Fintech Companies Pose Risks to Credit Unions, CEO Tells House Panel

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 Members Introduce Legislation to Lift MBL Cap During Crisis

Two House members have introduced legislation that would lift the member business lending cap during the pandemic in an effort to allow credit unions to make more loans during the economic crisis.

Reps. Brad Sherman (D-Calif.) and Brian Fitzpatrick (R-Pa.) introduced legislation Monday that would lift the cap of 12.25% for up to one year after the national emergency has ended. The exemption prohibits any business loan that would undermine the safety and soundness of a credit union.