WASHINGTON—In follow up to a letter sent to House and Senate leaders at the start of the 116th Congress, NAFCU Vice President of Legislative Affairs Brad Thaler has elaborated on the details of the association's 2019 priorities, including action items necessary to achieve them.
Thaler sent letters to Senate Majority Leader Mitch McConnell (R-Ky) and Senate Minority Leader Chuck Schumer (D-NY); and House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) that were copied to their respective chambers.
NAFCU called for an environment that allows credit unions to grow and thrive, with Thaler outlining action items in support of that goal:
- Preserving the credit union tax exemption. NAFCU noted it has long defended the industry's tax status, and that an independent study commissioned by NAFCU found the credit union tax exemption provides a $16 billion per year benefit to the U.S. economy and allows credit unions to offer better loan and deposit rates to consumers.
- Reforming the housing finance system and government-sponsored enterprises. Thaler said there is bipartisan interest in addressing this issue, writing, "Preserving a government guarantee, maintaining unfettered access to the secondary market, and ensuring fair pricing for credit unions based on loan quality will remain a top legislative issue for NAFCU."
- Reforming field of membership. NAFCU said it believes the federal charter should keep pace with state charters. Thaler says there are opportunities for legislative improvements to the Federal Credit Union Act, including allowing all credit unions to add underserved areas.
- Reforming capital and risk-based capital (RBC) rules. Thaler reiterated NAFCU's request that Congress further delay the NCUA's RBC rule until 2021 to allow the agency more time to reconsider its approach. He also notes the need for improved access to alternative capital, including both secondary capital and supplemental capital.
- Modernizing the Telephone Consumer Protection Act (TCPA). NAFCU noted it has previously shared its concerns related to the definition of an autodialer and the need for clarity under the TCPA to ensure credit unions can contact their members without fear of breaking the law.
Other Priorities
In addition to growth, the other priorities outlined by Thaler included: regulatory relief, a fair playing field, government transparency and accountability, and a strong, independent NCUA as credit unions' primary regulator.
Some of the action items include reconsidering the current expected credit loss (CECL) standard, enacting a national data security standard and obtaining guidance on website accessibility requirements under the Americans with Disabilities Act (ADA).