WASHINGTON–NAFCU and CUNA said they have jointly retained the law firm Williams & Connolly to respond to the lawsuit filed against NCUA over its proposed changes to its member business lending regulations.
That lawsuit was filed by the Independent Community Bankers of America (ICBA). As CUToday.info reported here, the ICBA said at the time it filed the lawsuit that "If allowed to stand, the NCUA’s final rule would allow tax-exempt credit unions to exceed limitations on commercial lending activity established by Congress while relaxing regulatory oversight—putting consumers and the financial system at risk."
In a joint statement, NAFCU CEO Dan Berger and CUNA CEO Jim Nussle said, "With approximately 6,000 credit unions that represent nearly 105 million Americans, NAFCU and the CUNA/league system will take whatever actions are necessary to protect and defend the interests of credit unions and small businesses. Our trade associations support the NCUA’s member business lending rule, which is consistent with the law and allows small businesses more access to the capital they need.”
When the lawsuit was introduced in early September, both CUNA and NAFCU were quick to respond, saying the lawsuit is “baseless” and part of a “campaign of misinformation.”
The lawsuit, however, prompted some Washington state-chartered credit unions to ask the state's Director of Credit Unions to temporarily suspend its pending rulemaking process to update the Washington State Member Business Lending Rule.
“We concur that, while the Division of Credit Unions and credit unions analyze this lawsuit and its implications (if any) for Washington State, it would be prudent to temporarily suspend our rulemaking process at this time,” the division said, noting that it has cancelled four rulemaking meetings throughout the end of the year.