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The House Financial Services Committee today is set to markup several items – ranging from the fiscal year 2022 budget, to task forces on artificial intelligence (AI) and fintech, to legislation on diversity and more. Ahead of the markup, NAFCU's Brad Thaler shared the association's perspective on the issues up for discussion.

FY2022 Budget

President Joe Biden earlier this month released his FY2022 discretionary funding request, which included boosted funding for the Treasury Department's Community Development Financial Institution (CDFI) Fund. The House Financial Services Committee's outline of provisions under its jurisdiction to the Budget Committee notes its support of the CDFI funding and recommends setting aside 40 percent of funds for CDFI grants to minority lending institutions (MLIs). The committee also recommends providing $10 million to the NCUA's Community Development Revolving Loan Fund (CDRLF), with funds set aside for minority depository institutions (MDIs).

Thaler offered the association's support for these funding levels "to ensure credit unions have the proper policies and infrastructure in place amid the coronavirus pandemic and beyond."

In response to the committee's opposition to bringing the CFPB under the congressional appropriations process – which NAFCU has supported – to ensure its independence, Thaler reiterated the association's call to establish a bipartisan commission to lead the bureau.

Task Forces on AI and Fintech

The committee is considering resolutions to reestablish its Task Forces on Artificial Intelligence and Financial Technology. Thaler offered the association's support for Congress and regulators directing attention to these issues. NAFCU-witness Carlos Pacheco last week testified before a House Financial Services subcommittee on the need to establish a level playing field between credit unions and fintechs and ensure proper oversight of fintech companies looking to become banks or acquire banks.

Diversity, Equity, and Inclusion (DEI)

Three of the bills on the committee's markup agenda – H.R. 2123, the Diversity and Inclusion Data Accountability and Transparency Act, H.R. 2516, the Promoting Diversity and Inclusion in Banking Act, and H.R. 2543, the Federal Reserve Racial and Economic Equity Act – look to promote DEI in financial services. Thaler offered the association's general support of the legislation, highlighting credit unions' "record of diversity and commitment to helping the portions of their communities that are most in need with high-quality financial products and services." He also thanked the committee for ensuring the bills would not create additional burdens on small institutions and MDIs that make it harder for them to serve their communities.

Debt Collection

Another bill on the agenda – H.R. 2547, the Comprehensive Debt Collection Improvement Act – would combat abusive debt collection practices; Thaler noted the need to combat abusive practices and advised the committee to ensure provisions are "practical and workable."

Appraisals

Thaler offered the association's support for the intent of H.R. 2553, the Real Estate Valuation Fairness and Improvement Act – to review federal appraisal standards and identify reforms to promote equitable housing policy.

NAFCU will keep credit unions informed of the markup's outcomes and continue to advocate for legislation that allows credit unions to thrive and better serve their 124 million members.