Credit union board modernization part of updated housing bill

The Credit Union Board Modernization Act is expected to head to the Senate floor this week as part of a housing package unveiled by Senate Banking and House Financial Services Committee leaders Tuesday.  

The updated bill text and section-by-section overview for the “21st Century ROAD to Housing Act” came from Sens. Tim Scott, R-S.C., Chairman, and Elizabeth Warren, D-Mass., Ranking Member of the Banking, Housing, and Urban Affair Committee; and Reps. French Hill, R-Ark., Chairman, and Maxine Waters, D-Calif., Ranking Member of the House Financial Services Committee.  

"America's Credit Unions thanks Chairmen Scott and Hill and Ranking Members Warren and Waters for their bipartisan leadership to address affordable housing issues. Credit unions make homeownership possible for millions of members, and we are encouraged by lawmakers' efforts to focus on practical solutions through the 21st Century Road to Housing Act,” said Scott Simpson, America's Credit Unions president/CEO.

“The legislation includes regulatory relief provisions that will allow credit unions to focus more of their resources on serving their members, including through the Credit Union Board Modernization Act. Our relentless advocacy with League partners and industry stakeholders for improvements to the regulatory environment will fuel stronger communities and deliver real results for families. We urge Congress to swiftly pass this much-needed package.”

The Credit Union Board Modernization Act would allow credit union boards the ability to meet six times per year at minimum, instead of the currently required once per month. It has passed the House several times this Congress, both as standalone legislation and as part of a larger package.

Other elements helpful to credit unions included in the housing package include the creation of a mentor-protégé relationship between large institutions over $50 billion and small institutions, rural institutions, and MDIs, and a requirement for the NCUA to study steps to help de novo credit unions and rural credit unions.

The bill was part of a housing package that passed the House in May, but the House would need to consider the updated version after it is passed by the Senate to send it to the president’s desk.