Credit unions did not contribute to the financial crisis yet are still subject to increasing regulatory requirements mandated under the Dodd-Frank Act. Accordingly, broad-based regulatory relief continues to be a top priority for NAFCU and its member credit unions. In addition to NAFCU's five-point plan for regulatory relief, NAFCU called on Congressional leaders to embrace bipartisan regulatory relief in a letter outlining top priorities for the 114th Congress, including:
Regulatory relief for community based financial institutions has been a hot topic in the 114th Congress. NAFCU has already testified before the House Financial Services and Senate Banking Committees on regulatory relief priorities for credit unions including the impact of NCUA's second risk-based capital proposal, field of membership changes, and a plethora of other issues outlined in NAFCU's 5 Point Plan for Regulatory Relief. The Financial Services Committee moved a package of bills, several of which positively impacted credit unions. Chairman Richard Shelby (R-AL) and the Senate Banking Committee moved a comprehensive measure, the Financial Regulatory Improvement Act, which also contains several provisions directly impacting credit unions. While the bill failed to garner the support of any Democrats on the Senate Banking Committee, negotiations are ongoing and NAFCU is hopeful that regulatory relief legislation that would help credit unions will be taken up by the full Senate this Congress.
Last Congress, the House considered and passed by voice vote a standalone measure (H.R. 3468) that amends the Federal Credit Union Act to require that pass-through share insurance coverage be provided when a credit union member holds funds on behalf of a nonmember in trust accounts, such as Interest on Lawyers Trust Accounts (IOLTAs). On December 11, 2014, the Senate passed the House bill by unanimous consent, and on December 18, 2014 the bill was signed by the President. NCUA Chairman Debbie Matz announced on December 19, 2014 that lawyers' trust accounts at federally insured credit unions are now insured to the limit allowed by the National Credit Union Share Insurance Fund. NAFCU had urged an NCUA response immediately after President Obama signed the bill into law. NAFCU believes this bipartisan measure passed at the end of the 113th Congress is a good first step and will lead to larger regulatory relief in the 114th Congress.
NAFCU has testified
before Congress on regulatory relief numerous times and looks forward to future
opportunities before key lawmakers. Recent
regulatory relief testimony includes:
Peggy Bosma-LaMascus, President and CEO of Patriot FCU before the House Financial Services Committee, "Preserving Consumer Choice and Financial Independence." 3/18/2015
Ed Templeton, President and CEO of SRP FCU before the Senate Banking Committee, "Regulatory Relief for Community Banks and Credit Unions." 2/12/2015
Linda McFadden, President and CEO of XCEL FCU before the Senate Banking Committee, "Examining the State of Small Depository Institutions." 9/16/2014
David Clendaniel, President and CEO of Dover FCU before the House Financial Services Committee, "Examining Regulatory Relief Proposals for Community Financial Institutions" 7/15/2014
Daniel Weickenand, President and CEO of
Orion FCU before the House Financial Services Committee, "How Prospective and Current
Homeowners Will Be Harmed by the CFPB's Qualified Mortgage Rule" 1/14/2014
Burrow, President and CEO of Bay Heritage FCU before the House Financial
Services Committee, "Examining Credit Union Regulatory Burdens"4/10/2013
Please be assured that NAFCU will continue to push for commonsense regulatory reform on Capitol Hill with an emphasis on the five areas outlined in our plan below and available for download.
1. Capital Reforms for Credit Unions
Modernize capital standards for credit unions in order to reflect the realities of the 21st century financial marketplace:
2. Field of Membership Improvements for Credit Unions
Make improvements to the Federal Credit Union Act to help enhance the federal credit union charter:
3. Reduce Consumer Financial Protection Bureau (CFPB) Burdens on Credit Unions
Credit unions did not cause the financial crisis, but have been victims in the new tide of regulations aimed at those institutions who did, with over 1,000 institutions disappearing since the passage of the Dodd-Frank Act, primarily due to the new regulatory burdens.
4. Operational Improvements for Credit Unions
Credit unions stand willing and ready to assist in our nation's economic recovery. Our industry's ability to do so, however, is severely inhibited by antiquated legislative restrictions.
5. 21st Century Data Security Standards
Credit unions are being adversely impacted by ongoing cyber-attacks against the United States and continued data breaches at numerous merchants. The cost of dealing with these issues hinders the ability of credit unions to serve their members. Congress needs to enact new 21st century data security standards that include:
NAFCU has stayed at the forefront of this issue and continued to champion credit unions in major media nationwide.
NAFCU Statement on House Financial Services Committee Approval of Regulatory Relief Bills
(July 29, 2015)
Credit Unions Fighting for Survival (Wall Street Journal, July 23, 2015)
NAFCU Statement In Response to Senate Appropriations Committee Mark-up of “Financial Services and General Government Appropriations” Bill (July 23, 2015)
Dodd-Frank's Fifth Anniversary Is No Cause for Celebration (American Banker, July 21, 2015)
5 years later, 5 things to know about Dodd-Frank (CNBC.com, July 21, 2015)
Dodd-Frank Continues to Polarize 5 Years Later (Credit Union Times, July 21, 2015)
Congress & Industry Leaders Discuss Dodd-Frank’s Progress on its Fifth Anniversary (The MReport, July 21, 2015)
Dodd-Frank Anniversary Part I: NAFCU Says Legislation Has Led to ‘Demise’ Of Many CUs(CUtoday.info, July 20, 2015)
NAFCU Statement on Five -Year Anniversary of Dodd-Frank and Credit Unions
(July 21, 2015)
Federal Advocacy More Important Than Ever Post Dodd-Frank (Credit Union Times, July 10, 2015)
World A Better Place Post Dodd-Frank? NAFCU Says No (CUtoday.info, July 9, 2015)
Dissecting Dodd-Frank 5 Years Later (Credit Union Times, July 7, 2015)
Read recent letters from NAFCU to members of Congress on the important issue of regulatory relief for credit unions.
4-22-2015 NAFCU Letter on Regulatory Burdens Faced by Credit Unions
12-12-2014 NAFCU Letter to the President Urging Support for the Credit Union Share Insurance Fund Parity Act (H.R. 3468)
10-22-2014 NAFCU Letter to Senator Crapo on Regulatory Relief for Credit Unions
9-26-2014 NAFCU Letter to the Senate on Regulatory Relief for Credit Unions
9-8-2014 NAFCU Letter to the Senate Banking Committee on the Importance of Regulatory Relief for our Nationals Credit Unions
NAFCU Letter to the HFSC on Regulatory Relief Measures for Credit Unions
7-15-14 Testimony from David Clendaniel from the House Financial Services Committee on Financial Institutions and Consumer Credit
5-6-14 NAFCU's Letter in Support for Credit Union Regulatory Relief Measures
5-5-14 NAFCU's Letter in Support of Insurance Parity on IOLTAs (H.R. 3468)
5-5-14 NAFCU's Letter in Support of Changes to the CFPBs Rural Designation Process (H.R. 2672)
View all NAFCU Policy Letters
Updated June 2015