Credit Union Expansion Included in House-passed Bill
Today, the House of Representatives passed H.R. 2543, the Financial Services Racial Equity, Inclusion and Economic Justice Act, which includes provisions from the credit union expansion bill, H.R. 7003.
Nebraska representatives Don Bacon and Adrian Smith voted no on the passage of H.R. 2543.
Last week, the NBA, the American Bankers Association (ABA) and 50 state bankers associations sent a letter to members of the House of Representatives urging lawmakers to reject including H.R. 7003 in H.R. 2543. The groups called the credit union legislation “self-serving” and “masquerading as a financial inclusion initiative.”
H.R. 7003 would allow credit unions to expand their field of membership by adding areas 10 miles or more from the nearest financial institution branch and low-income areas. However, the bill does not require credit unions to demonstrate that they are providing financial services to underserved individuals and businesses. The legislation also creates a loophole in credit union commercial lending restrictions by exempting loans to borrowers living or operating in an underserved area from the lending cap.
FinCEN Issues Advisory on Elder Financial Exploitation
The Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert financial institutions to the rising trend of elder financial exploitation. The advisory highlights new types of exploitation and red flags since FinCEN issued its first advisory on the issue in 2011.
Read the Advisory
SBA OIG: Lenders Lacked PPP Fraud Guidance
In a new report, the SBA Office of the Inspector General (OIG) said the agency failed to provide Paycheck Program Program (PPP) lenders with “sufficient, specific guidance to effectively identify, track, address and resolve potentially fraudulent [Paycheck Protection Program] loans,” which increased the risk of potentially fraudulent PPP loans.
Read the Report
ARRC Issues USD Libor ICE Swap Rate Contracts Recommendations
The Alternative Reference Rates Committee (ARRC) issued recommendations for contracts linked to U.S. dollar LIBOR Intercontinental Exchange (ICE) Swap Rates.
Read the Recommendations