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S. 2155
On Friday, May 24, President Trump signed into law S. 2155, the massive regulatory relief package designed to ease the burden for credit unions and other community lenders that was passed by Congress on May 22.

S. 2155 - It's A Success

On Thursday, May 24, President Trump signed into law S. 2155, the massive regulatory relief package designed to ease the burden for credit unions and other community lenders that was passed by Congress on May 22.

"We would like to thank all of you for the years of hard work you put into making this victory possible. Every GAC, Hike the Hill, Connect for the Cause email, and district meeting laid the groundwork for this achievement," said Diana Dykstra, president and CEO of the California and Nevada Credit Union Leagues. "With the current challenges of moving legislation in Washington, D.C., this victory provides clear testimony to the importance of teamwork combined with perseverance. Our collective work also continues to demonstrate the value of the CUNA-League system. California and Nevada credit unions led the way.”

There are two provisions of this bill that would never have been part of the final package if not for the lengthy relationships between California and Nevada credit unions and their members of Congress. Section 105, which exempts 1-4 unit, non-owner occupied residential properties from the member-business lending (MBL) cap, was championed by California Congressmen Ed Royce (R-Brea) and Jared Huffman (D-Santa Rosa). For three Congressional sessions these two leaders have been the tip of the spear for this legislation. And at the last session, 80 percent of the California delegation and 100 percent of the Nevada delegation co-sponsored it.

In addition, Section 212 finally provides transparency in the NCUA’s budgeting process. The relationship between the Nevada League and Senator Dean Heller made this win possible. Sen. Heller began advocating for this change after meeting with Nevada credit union leaders a few years ago.

Below are some specifics about the value this legislation will bring to your credit union. Please review the full assessment of S.2155 that summarizes the various cost savings for credit unions by CLICKING HERE.

The largest savings in S. 2155 can be found in three sections:

Section 101 provides safe harbor for qualified mortgages held in portfolio.

  • California, 252 credit unions hold 159,100 first mortgages in portfolio.
  • Nevada, 13 credit unions hold 5,800 first mortgages in portfolio.

 Section 104 exempts Home Mortgage Disclosure Act compliance for financial institutions under $10 billion with less than 500 open and closed-end mortgages.

  • California, an estimated 205 CUs on roughly 27,700 loans, reducing 4,620 hours.
  • Nevada, an estimated 13 CUs on roughly 1,900 loans, reducing 320 hours.
  • Estimated Average Savings/Resource Time: $532,800 annually- CA/NV combined; an average of $2,444 per month per CA/NV credit union.

Section 105: Treatment of Non-Owner Occupied 1-4 Unit Residential Loans.

  • California, frees roughly $163.7 million of capital for residential lending.
  • Nevada, frees roughly $4.0 million for residential lending.

While we have provided these savings estimates to your credit union, the political capital gained by pushing S.2155 from concept to law cannot be quantified. In Washington, as in other legislative bodies, current wins lay the foundation for future ones. Credit unions still have a future agenda that includes: updating the federal charter, addressing data and payment security, continuing to fight for more commonsense regulation, and preservation of our tax status. For right now, let’s take a moment to enjoy this hard-earned victory.

Thank you all, once again for your long-term commitment to advocacy, the Leagues, and to our mutual successes.