SB 21-22: Credit Unions Are Good Act (Final Vote)

[Pericles]

CREDIT UNIONS ARE GOOD ACT

SECTION I: NAME
a. This act shall be known as the Credit Unions Are Good Act

SECTION II: REPEAL OF DUMB REGULATIONS
a. The regulation prohibiting federally regulated credit unions from purchasing mortgage servicing rights as an investment, including but not limited to mortgage servicing rights from other credit unions is hereby eliminated, provided the total assets of mortgage servicing rights held by any federal credit union does not exceed 20% of its total assets. 12 CFR 703.16 shall be amended accordingly.
b. The regulation prohibiting federally regulated credit unions from purchasing and holding their own account investment grade securities is hereby eliminated provided that the total assets of such securities held by a federally regulated credit union does not exceed 10% of its total assets. 12 CFR 703.14 shall be amended accordingly.
c. Any State law governing member business loan limitations for credit unions that conflict with a federal law governing federally-regulated credit unions are hereby preempted.

SECTION III: TIMING
a. This act shall take effect thirty (30) days after adoption.

House of Representatives
Passed the House of Representatives 7-0-1-1
X YE

Sponsor:
Senate Designation: SB 21-22

[Pericles]

This needs a sponsor.

[Pericles]

This needs a sponsor.

[ON Progressive]

I will sponsor.

[Pericles]

24 hours to object to Senator ON Progressive sponsoring this.

[Pericles]

ON Progressive is recognized as the sponsor and is invited to speak on this bill.

[Pericles]

ON Prog?

[Southern Senator North Carolina Yankee]

While I would prefer to wait for the sponsor, the one question I would like to get out there is does allowing the purchase of these assets undermine the security of credit unions?

[Southern Senator North Carolina Yankee]

While I would prefer to wait for the sponsor, the one question I would like to get out there is does allowing the purchase of these assets undermine the security of credit unions?

[Pericles]

ON Prog?

[ON Progressive]

This bill allows credit unions to invest up to 20% of their pool in mortgages and 10% of their pool in themselves, which will make it easier for credit unions to grow themselves.

While I would prefer to wait for the sponsor, the one question I would like to get out there is does allowing the purchase of these assets undermine the security of credit unions?

I don't expect allowing the purchase of these assets to undermine the security of credit unions.

[Southern Senator North Carolina Yankee]

Does this include allowing them to buy Mortgage backed securities? Either intentionally or unintentionally?

[ON Progressive]

Does this include allowing them to buy Mortgage backed securities? Either intentionally or unintentionally?

This bill doesn't appear to say anything about that. My guess would be yes though.

[Southern Senator North Carolina Yankee]

The underlying purpose here is sound I think, which is to ensure that we crafting policies to help smaller banks and credit unions as opposed to burdening them in a manner similar to or even worse then big banks. Big finance is crooked, who knew?

As for solving the concerns about mortgage backed securities, I think we can probably deal with that more generally in a subsequent bill (similar to the outline I brought up in the Too Big to Fail bill) preferably one not debated at Christmas time when attention spans on the minute details of banking regulations are going to naturally find themselves wanting for attention of the members.

With that said, I am fine with proceeding to a final vote if everyone else is.

[Southern Senator North Carolina Yankee]

I am going to go ahead and motion for a final vote on this one. I don't think we are in a position to deal with various complexities of financial laws during this holiday season and my hope is early in the next session to be able to advance a bill that deals with other aspects of financial regulation.

[Pericles]

24 hours to object to the final vote motion.

[Pericles]

With no objection, a final vote has begun on this bill. Senators have 72 hours to vote Aye, Nay or Abstain.

[ON Progressive]

Aye

[Peanut]

Aye.

[Dr. MB]

Aye

[Pyro]

Aye

[Southern Senator North Carolina Yankee]

AYE

[Pericles]

This bill has passed 5-0-0-1.
Aye; 5 (ON Progressive, Peanut, MB, PyroTheFox, North Carolina Yankee)
Nay; 0
Abstaining; 0
Not Voting; 1 (Devout Centrist)

[Pericles]

CREDIT UNIONS ARE GOOD ACT

SECTION I: NAME
a. This act shall be known as the Credit Unions Are Good Act

SECTION II: REPEAL OF DUMB REGULATIONS
a. The regulation prohibiting federally regulated credit unions from purchasing mortgage servicing rights as an investment, including but not limited to mortgage servicing rights from other credit unions is hereby eliminated, provided the total assets of mortgage servicing rights held by any federal credit union does not exceed 20% of its total assets. 12 CFR 703.16 shall be amended accordingly.
b. The regulation prohibiting federally regulated credit unions from purchasing and holding their own account investment grade securities is hereby eliminated provided that the total assets of such securities held by a federally regulated credit union does not exceed 10% of its total assets. 12 CFR 703.14 shall be amended accordingly.
c. Any State law governing member business loan limitations for credit unions that conflict with a federal law governing federally-regulated credit unions are hereby preempted.

SECTION III: TIMING
a. This act shall take effect thirty (30) days after adoption.

House of Representatives
Passed the House of Representatives 7-0-1-1
X YE
People's Regional Senate
Passed 5-0-0-1 in the Atlasian Senate Assembled