WASHINGTON—NAFCU cited five tenets of a healthy and appropriate regulatory environment for credit unions in a letter to the leaders of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, which held a hearing Wednesday on regulatory relief for community financial institutions.
"History has shown that a robust and thriving credit union industry is good for our nation’s economy, as credit unions fill a need for consumers and small businesses in the financial services marketplace that may otherwise not be met by other institutions," wrote Brad Thaler, vice president of legislative affairs, in a letter to panel Chairman Blaine Luetkemeyer (R-MO) and Ranking Member William Lacy Clay (D-MO).
"NAFCU firmly believes that regulatory relief is needed both from Congress and the regulators to ensure credit unions have a healthy and appropriate environment that allows them to meet the needs of the nation's 108 million credit union members,” Thaler added.
Addressing the "five tenets," Thaler said NAFCU supports:
- A regulatory environment that allows credit unions to grow
- Appropriate, tailored regulation for credit unions and relief from growing regulatory burdens
- A fair playing field
- Transparency and independent oversight
- A strong, independent NCUA as the primary regulator for credit unions
Thaler also reiterated the association's support for Leutkemeyer's Community Lending Enhancement and Regulatory Relief Act (HR 2133), one of nine bills up for discussion in Wednesday’s hearing.
The CLEARR Act, would, among other things, increase the "small servicer" exemption threshold to an annual 30,000 mortgages; repeal risk-based capital rules related to mortgage servicing assets; and remove of "abusive" from the CFPB prohibition against unfair, deceptive, or abusive acts and practices (UDAAP).
"We are also pleased to see the subcommittee examining bills to provide relief on issues such as examination appeals, privacy notices, online banking and appraisal requirements," Thaler added.