What in the world does Rolaids have to do with compliance? Well, if you are old like me, you might remember the commercials that ran in the 80’s which said Rolaids spells relief. However, in this case M-I-L-L-E-R may spell relief for credit unions. This is because House Financial Services Committee Vice Chairman Gary Miller submitted a credit union regulatory relief bill on June 28th.
In a release posted on his website, Miller stated “While I fully support effective federal regulation in the financial services sector, it is clear that new regulations out of Washington aimed at bad actors are negatively impacting those institutions that did not contribute to the financial crisis.” I’m guessing that many of us in the compliance field have made similar, though possibly less politically correct, statements (I know I have).
If passed as proposed, the Regulatory Relief for Credit Unions Act would:
- Allow the credit union’s prudential regulator, the National Credit Union Administration (NCUA), to grant federal credit unions a waiver to follow a state rule instead of a federal one in certain situations;
- Establish a risk-based capital system for credit unions akin to that of other depository institutions;
- Authorize the NCUA to step in where appropriate to delay application of, or slightly modify, a Consumer Financial Protection Bureau (CFPB) rule affecting credit unions to be sure such a rule recognizes the unique nature of credit unions while also carrying out the intent of the CFPB;
- Require that NCUA and CFPB revisit cost/benefit analyses of rules after three years so they have a true sense of the compliance costs for credit unions;
- Require the NCUA to conduct a study of the Central Liquidity Facility for credit unions and make legislative recommendations for its modernization;
- Provide credit unions parity with FDIC-insured institutions when it comes to deposit insurance coverage on Interest on Lawyers Trust Accounts (IOLTAs); and
- Give credit unions better control over their investment decisions and portfolio risk.
Keep your browser dialed in to The Works Blog for more information, as it is available.
And, while you wait, you may keep yourself entertained with the aforementioned Rolaids commercial, featuring Roger Staubach and Tommy Lasorda.