Financial services companies would continue to make loans—and make money on the deals—if Congress decides to place a 36% interest rate cap on short-term loans, Richard Williams, president/CEO of the Essential Credit Union told a Senate committee Wednesday.
The House Financial Services Committee on Wednesday approved legislation which would require federal financial regulators to develop a strategic plan to encourage the chartering of new credit unions and banks. The panel approved H.R 4590 by voice vote. The bill, sponsored by Rep. Jake Auchincloss, D-Mass., would require the regulators to conduct an 18-month study examining the challenges that newly chartered credit unions and banks face. Following that study, the regulators would be required to develop a strategic plan to promote creation of new financial institutions, particularly minority depository institutions and community development financial institutions. In a memo prepared for
Credit union and banking trade groups are asking Congress to ignore proposals to impose a 36% fee and interest cap on loans made by financial institutions.
“The proposed 36% fee and interest cap would make it more difficult for many consumers to obtain credit, thereby harming the very consumers the legislation seeks to protect. Congress should reject these legislative measures,” the groups, including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote, in a letter to the Senate Banking Committee.
A Republican effort to kill a postal banking pilot program contained in the House version of the FY22 Financial Services spending bill failed Monday.
The decision by the House Rules Committee not to allow Republicans to offer that amendment during floor debate of the measure all but guarantees that the $6 million pilot program will be in the House-passed version of the appropriations measure.
Credit trade groups are continuing to press the National Credit Union Administration to lower its Normal Operating Level to 1.30%–a request that so far has been denied.
The National Credit Union Administration board agreed Thursday to solicit comments on a proposed rule that would amend the agency’s capital adequacy regulation governing credit unions with assets over $500 million.
In another sign of division among the three National Credit Union Administration board members, the agency on Wednesday dropped the 2022-2026 Strategic Plan from the agenda for Thursday’s board meeting.
On July 13, when federal banking regulators issued proposed guidance governing financial institution monitoring of third-party service providers, one agency was notably absent: the National Credit Union Administration.
The National Credit Union Administration board will consider the agency’s 2022-2026 Strategic Plan at its July 22 meeting, but once again is steering clear of contentious issues that badly divided the board earlier this year.
The National Credit Union Administration on July 19 will begin allowing staff and contractors to work onsite at credit unions where pandemic conditions have moderated, agency board Chairman Todd Harper announced Wednesday.