Housing bill clears House with pro-credit union amendments
The House moved forward a bill with a 390-9 vote Monday night that contains several credit union-supported amendments, including a bipartisan bill to update federal credit union board meeting requirements.
The larger bill, the Housing for the 21st Century Act (H.R. 6644), contains language from the Credit Union Board Modernization Act. This would give the board of federal credit unions the ability to meet six times per year, instead of the currently required once per month.
“The Housing for the 21st Century Act is an important step forward for credit unions, with several provisions that provide regulatory relief and support housing affordability,” said Scott Simpson, America’s Credit Unions president/CEO. “For years, America’s Credit Unions has advocated for modernizing outdated credit union governance rules that no longer reflect how institutions operate or the communities they serve. The inclusion of the bipartisan Credit Union Board Modernization Act within this package gives credit unions greater flexibility to build strong, effective boards while maintaining robust oversight and accountability.
“Modern governance helps credit unions focus on what matters most: expanding access to affordable financial services, supporting homeownership, and serving members during times of economic uncertainty. We appreciate the House continuing to recognize the need for these updates and urge the Senate to move quickly to advance these commonsense reforms.”
In addition to credit union modernization language, the House-passed H.R. 6644 would update statutory loan limits for Federal Housing Administration (FHA) mortgage insurance for multifamily projects, reform the HOME Program, make improvements to the Rural Housing Service, make innovations to manufactured housing, and examine expanding access to FHA small-dollar mortgages. Additional credit union-backed amendments included in H.R. 6644 would:
- Provide well-managed, well-capitalized credit unions with combined safety-and-soundness and consumer compliance examinations, as well as allowing limited-scope, off-site examinations in alternate years. The amendment is based on the Supervisory Modifications for Appropriate Risk-Based Testing (SMART) Act (H.R. 4437);
- Codify the Treasury’s mentorship program pairing small and rural financial institutions with larger ones. The amendment is based on the Advancing the Mentor-Protege Program for Small Financial Institutions (H.R. 3709); and
- Promote the formation of de novo credit unions and other community banks by streamlining the federal application process. The amendment is based on the text of the American Access to Banking Act (H.R. 4544).
In a letter to leadership prior to the vote, America’s Credit Unions urged House members to support the full package.