Waters and Sherman Introduce CLF Bill; Mark-Up on June 23

L-R: House Financial Services Committee Chair Maxine Waters (D-Los Angeles); and Rep. Brad Sherman (D-Sherman Oaks).
L-R: House Financial Services Committee Chair Maxine Waters (D-Los Angeles); and Rep. Brad Sherman (D-Sherman Oaks).

House Financial Services Committee Chairwoman Maxine Waters (D-Los Angeles) — along with Reps. Brad Sherman (D-Sherman Oaks) and Ed Perlmutter (D-Colorado) — introduced H.R. 3958 on Thursday morning, the Central Liquidity Facility (CLF) Enhancement Act.

The bill will make permanent the temporary borrowing authority limits of the CLF under the CARES Act. This authority was extended throughout this calendar year under the Consolidated Appropriations Act signed into law in December 2020. The CLF is under oversight of the National Credit Union Administration (NCUA).

Throughout last year, Waters and Sherman worked to ensure the temporary extensions did not expire. Perlmutter is chairman of the subcommittee on Consumer Protection and Financial Institutions, as well as a long-time credit union supporter.

The bill has been scheduled for next week’s June 23 mark-up, the process in which the financial services committee will pass the bill and report it to the full House of Representatives.

While it’s a lower priority for the California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA), the bill’s introduction is an enhancement measure in which the Leagues and CUNA both support and submitted a letter supporting (which can be viewed here).

The Leagues and CUNA are also continuing to work with Waters and the full committee on other more timely measures, such as the Expanding Financial Access for Underserved Communities Act, which allows credit unions to add underserved communities to their fields of membership and grants unlimited business lending authority in these areas. That bill is still progressing behind the scenes. The Leagues and CUNA should have an update on this bill in the weeks ahead.

Other bills, such as the expulsion of harmful members and increasing maturity limits for non-mortgage loans, remain a high priority.

The Leagues will provide more details as the mark-up commences next week.

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