[Congressional Record Volume 165, Number 86 (Wednesday, May 22, 2019)]
[House]
[Page H4075]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            CURRENT EXPECTED CREDIT LOSS ACCOUNTING STANDARD

  (Mr. LUETKEMEYER asked and was given permission to address the House 
for 1 minute and to revise and extend his remarks.)
  Mr. LUETKEMEYER. Mr. Speaker, today I rise to discuss an issue that 
is probably on the radar for almost everybody in this country that is 
watching or listening, but it involves new accounting standards being 
proposed called CECL.
  This is supposed to put some transparency into the balance sheet for 
people investing in banks, but it has a far-reaching impact in credit 
unions, debt collection, and all sorts of other funds, including the 
GSEs and credit cards; yet this accounting standard is being promoted 
by the Federal Accounting Standards Board without any study to show 
whether it is going to have an impact or not on our economy and on our 
consumers.
  The Home Builders Association says, for every $1,000 incoming into 
the cost of a home loan, 100,000 people across this country will no 
longer have access to home loans.
  What a dramatic impact on low- to moderate-income folks as well as 
our economy as a whole, as well as to financial institutions as a 
whole.
  The result of this, in other words, whenever this thing is 
implemented, when we have a downturn in the economy and all of a sudden 
you have to reserve additional money because of that, it will 
exacerbate, in my opinion, the downturn.
  This is a horrible deal. We need to take another look at it. We need 
to stop it and study it.

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