Wisconsin Assembly Bill AB715

Wisconsin 2023-2024 Regular Session

• Introduced: 11/27/23
• Refer: 11/27/23
• Report Pass: 1/16/24
• Refer: 1/16/24
• Failed: 4/15/24

Caption

Authorized activities and operations of credit unions; the lending area of savings and loan associations; automated teller machines; residential mortgage loans and variable rate loans; payments for public deposit losses in failed financial institutions; promissory notes of certain public bodies; repealing rules promulgated by the Department of Financial Institutions; providing an exemption from rule-making procedures; and providing a penalty. (FE)

Impact

One of the significant provisions is the repeal of current restrictions on off-site automated teller machines (ATMs). Traditionally, financial institutions other than credit unions had to notify state regulators before operating off-site ATMs. With this bill, such notifications are no longer required, which could expedite the deployment of ATMs and enhance access to banking services. Additionally, the bill increases the maximum compensation for public deposit losses from $400,000 to $1 million, providing greater financial protection for municipalities and public depositors in the event of a bank failure.

Summary

Assembly Bill 715 aims to amend various aspects of financial regulations concerning credit unions and savings and loan associations in Wisconsin. Notably, it expands the ability of credit unions to purchase, lease, hold, and convey real estate. This flexibility is contingent upon compliance with guidelines established by the Office of Credit Unions (OCU). Furthermore, the bill permits credit unions to issue supplemental capital, thereby enhancing their financial stability and operational capabilities.

Contention

The removal of certain lender disclosure requirements for residential mortgage loans and variable rate loans may raise concerns among consumer rights advocates, as it could limit borrowers' access to essential information regarding their loans. Additionally, the elimination of geographical lending restrictions for savings and loan associations allows these institutions to operate more broadly, potentially increasing competition in specific markets. However, this may also provoke debates about the implications of deregulating certain facets of financial operations, heightening risks for consumers if adequate safeguards are not maintained.