ARLINGTON, Va.–A new year, a new Congress and a new administration—time for a fresh start when it comes to Washington advocacy?
Perhaps, said NAFCU EVP and General Counsel Carrie Hunt, but before there’s any talk of how a new Congress might act, there is still a big issue to be decided, and that is control of the Senate. That will come down to yesterday’s special election for two Senate seats representing Georgia. Race results are expected to take several days to certify.
“That will be key,” said Hunt.
And even though its races are all decided, the House will also be tight, added Hunt. Nancy Pelosi (D-CA) was reelected Speaker of the House in a tight race and the Democrats—although they maintain their majority—lost seats. The expected Blue Wave, observed Hunt, “has not happened” in Congress. As a result, Hunt said she expects there to be “some healthy debate” in the new session of the national legislature.
The near 50-50 divide in the Senate (depending on the Georgia race) and a House still divided along partisan lines sounds like a recipe for more gridlock, and Hunt acknowledged there is certainly the potential for a repeat of the lack of progress that plagued the most recent Congress. But, she said, “I don’t think we will see quite as much gridlock as the last term. It will depend on the issues being debated.”
The Overarching Issue
The overarching issue, pointed out Hunt, remains the COVID-19 pandemic and its effects on the economy. While vaccines are now available, the rollout has been slower than had been anticipated, and many Americans have indicated they will decline to be vaccinated. The result could be the need for more stimulus or other relief and, for credit unions, lagging loan growth.
Hunt said a priority issue for NAFCU in recent years—CECL–remains a key in 2021, especially as deposits continue to flood in as the result of the new stimulus.
The new CECL rules, she said, will require credit unions to hold more capital than is necessary, and “that needs to be addressed.”
2021 Priorities
In a statement, NAFCU said its 2021 priorities are:
- Growth. “Supporting legislation and regulation that helps credit unions grow membership, loans and retained earnings.”
- Fair and Innovative Market. “Fighting back against banker attacks and establishing regulatory standards for fintech and other non-depository institutions.”
- Regulatory Relief. “Providing clear rules of the road and streamlining regulation that allows credit unions to put more resources towards serving members.”
- Strong NCUA. “Pressing for the NCUA to be the sole industry regulator and fostering a strong relationship with the agency to ensure credit unions’ voices and concerns are heard.”
- Data Protection: “Encouraging federal standards for data privacy and data security that recognize existing regulatory requirements for credit unions.”
NCUA in 2021
Looking to credit unions’ federal regulator in the new year, when board member Todd Harper is likely to be elevated to chairman as soon as President-elect Joe Biden takes office, Hunt said she “certainly believes we will see a different tone out of NCUA. Board Member Harper has identified his priorities as a board member and it remains to be seen” if those priorities will remain once he is chairman.
As chair, Harper will have control over the NCUA board agenda, but he will be in the minority as a Democrat. Current Chairman Rodney Hood and Vice Chairman Kyle Hauptman are Republican appointees.
Hunt said NAFCU will be watching the agency, especially activities related to the share insurance fund. With the stimulus funds hitting members’ accounts, Hunt said “credit unions need more tools to park these funds.”