Strengthening Oversight for the Financial Sector Act of 2026
Sponsored By: Representative Foster, Bill [D-IL-11]
Introduced
Summary
Expands federal oversight of third-party service relationships at credit unions and housing finance entities. The bill would change how credit unions notify the Board and give the Federal Housing Finance Agency Director clear authority to regulate and examine services performed for regulated entities as if done on their own premises.
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- Credit unions and their vendors would face a new notification rule that requires telling the Board in a manner the Board prescribes, and the bill removes subsection (f) of Section 206A of the Federal Credit Union Act.
- Entities supervised by the Federal Housing Finance Agency and the Office of Finance would have third-party activities treated as if performed by the entity itself, and must notify the FHFA Director within 30 days after a service contract is made or the activity is first performed.
- States keep their existing power to regulate these entities and their service providers, so federal oversight is applied without stripping State authority.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
FHFA oversight of service providers
If enacted, FHFA-regulated entities and the Office of Finance would have to tell the FHFA Director about a service relationship within 30 days. The 30-day clock would start after a service contract is made or after services begin, whichever happens first. Activities done for those entities by contractors would be subject to FHFA regulation and examination as if the entity did the work on its own premises.
New notice rules for credit unions
If enacted, entities that must notify the National Credit Union Administration Board under Section 206A would have to send that notice "in a manner and method prescribed by the Board." The change would take effect upon enactment and mainly affects federal credit unions and others who file those notices by adding a Board-prescribed compliance method.
Repeal of a credit union rule
If enacted, the bill would remove subsection (f) of Section 206A of the Federal Credit Union Act. The repeal would take effect upon enactment and apply to entities governed by that section. The text provided does not say what subsection (f) currently required, so the change could either reduce regulatory obligations or remove a protection.
Sponsors & CoSponsors
Sponsor
Foster, Bill [D-IL-11]
IL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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