The Senate and the House of Representatives passed a transportation authorization bill – the Surface TransportationReauthorization and Reform Act (H.R. 22) – on Thursday. The Senatevote count was 83-16, while the House passed the bill by a 359-65vote. The legislation now awaits President Obama's signature.

The bill included the text of the Eliminate Privacy NoticeConfusion Act (H.R. 601), an amendment by Rep. Blaine Luetkemeyer(R-Mo.). The bill provides relief to financial institutions bychanging the frequency in which consumers receive privacy notices.Instead of sending privacy notices yearly, notices will only needto be sent to alert consumers of any documentation changes.Additionally, consumers will receive a privacy notice upon openinga new account.

Additionally, the package included the Helping Expand LendingPractices in Rural Communities Act (H.R. 1259) from Rep. Andy Barr(R-Ky.). This bill could prove helpful to credit unions as theydeal with the CFPB's definition of “rural area,” particularly as itrelates to the ability-to-repay mortgage rule.

Other provisions in the bill include giving privately insuredcredit unions the authority to become members of the Federal HomeLoan Bank with the presence of a Government Accountability Officereport that looks at private insurance. It also authorizes the FDICto complete an 18-month examination cycle for well-run community banks.Additionally, the bill removes a provision that called for the useof Fannie Mae and Freddie Mac credit-risk guarantee fees, org-fees, for highway funding.

“We thank the members of the House and Senate for taking thesesteps to provide regulatory relief in the final legislation andlook forward to the president signing this bill and making theseregulatory relief measures a reality for credit unions,” NAFCUPresident/CEO Dan Berger said in a statement.

CUNA also supported the action.

“This is a huge victory for credit unions and the over 100million credit union members CUNA represents,” CUNA President/CEOJim Nussle said in a statement. “CUNA has long supportedmodernizing privacy notification requirements, allowing privatelyinsured credit unions to become members of the Federal Home LoanBank system and directing the CFPB to establish a process fordetermining whether an area should be designated as rural whichcould impact the products credit unions offer.”

In response to the bill's passage, John McKechnie, partner atthe Washington-based consulting firm Total Spectrum, commented,“Financial institutions overall were treated well in thetransportation reauthorization bill, and credit unions should bepleased by the fact that Congress included several worthwhilecredit union-friendly provisions. Now, the stage may be setfor even more reg relief items in the omnibus; credit unions wouldbenefit from language in Chairman (Richard) Shelby's bill relatedto (the) CFPB, mortgages, FFIEC exam standards and FHFA membership,just to name a few. I'm going to be wearing out a few pairs ofshoes between now and next Friday, because the game really isafoot, and there are real opportunities to be had.”