CU 4 Reality

Senate Bill S.2155: Regulatory Burden Hurting Financial Services Here in New Hampshire

Senate Bill 2155

March 15, 2018

Thank you Senators Shaheen and Hassan for voting and passing Senate Bill 2155

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New Hampshire is home to a robust array of credit unions and community banks. This is such a benefit for the state because these are local institutions focused on serving their local communities. What most New Hampshire consumers and small businesses may not know is that local institutions like ours are being hampered by unnecessary regulations that hurt our ability to better serve our member owners.


Here’s the problem: After the financial crisis struck in 2008, Congress responded by passing the Dodd-Frank Act in 2010, which brought a myriad of new regulations to the financial services industry. Dodd-Frank was focused on the mega Wall Street firms and bad financial actors that helped cause the financial crisis. Credit unions didn’t cause the financial crisis. We didn’t put our members in bad mortgages that hurt them financially. Quite the contrary, we did the right things for our members and our loans performed better than any other sector of the financial services industry. Why? Because we know our members and we work on a one-on-one basis with them to serve their unique financial needs.


Today, however, we don’t have the flexibility we once had. Dodd-Frank has crimped our ability to be flexible with members and work with them on their lending needs. For example, current mortgage regulations that were designed to limit Wall Street in being able to package up mortgages that haven’t been properly underwritten now put all borrowers in a tight box. If you don’t fit in that box it is very hard to meet that member’s mortgage needs. This is not good for consumers. We know our members and need the flexibility to work with them. It’s good for our communities and our economy.


Another example of overregulation is in the small business area. Most in New Hampshire probably don’t know that when their credit union makes a loan for a 1-4 non-owner-occupied property — the so-called double or triple deckers that are throughout our communities — those loans are classified as business loans not mortgages which they are for every other financial institution. This classification limits our flexibility on loan terms to help the borrower and worse, it counts as a small business loan for the credit union, for which we are limited on how many small business loans we can do. Because of this, credit unions have less capital available to fuel our state’s vibrant small business community. Small businesses need more options, not less.


The Senate voted to reverse this overregulation with Bill 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. The bill was passed on March 14th on the Senate floor and I thank Senators Shaheen and Hassan for voting to help the state’s community banks and credit unions by removing overregulation on community institutions. The bill keeps a tight regulatory watch on the big mega institutions and Wall Street, but gives relief to where it is most needed, community institutions like credit unions that are firmly planted on Main Street. I urge our two Congresswomen, Kuster and Shea-Porter, to vote for this bill in the House.


Contact your New Hampshire Congresswomen today:

Carol Shea-Porter Anne McLane Kuster
United States House of Representatives
1530 Longworth House Office Bldg.
Washington, D.C. 20515
Legislative Assistant: Tony Hobbs
Phone: (202) 225-5456
Website: https://shea-porter.house.gov
E-mail: tony.hobbs@mail.house.gov
United States House of Representatives
137 Cannon House Office Bldg.
Washington, D.C. 20515
Legislative Director: Justin German
Phone: (202) 225-5206
Website: https://kuster.house.gov
E-mail: justin.german@mail.house.gov

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