WASHINGTON—Both CUNA and NAFCU have outlined their legislative priorities for 2017 and, as expected, much of it is focused on regulatory relief for credit unions.
“For both new and returning members of Congress it is vital they understand the unique value of credit unions—not-for-profit, member-focused financial institutions—in America’s financial landscape,” said NAFCU President and CEO Dan Berger. “We welcome the opportunity to work with Congress and the Trump administration to promote a positive business environment that will allow credit unions to succeed and help our nation’s economy to prosper.”
NAFCU’s 2017 top priorities include preserving the credit union tax exemption, pushing for credit union regulatory relief and housing finance reform. Some of NAFCU’s priorities, as outlined by the trade association, are below:
- Preserve the credit union tax exemption. Preserving credit unions’ federal corporate income tax exemption remains NAFCU’s number-one legislative priority. While no member of Congress has proposed eliminating the exemption, this issue could get a fresh look with new eyes under a new Republican administration and Republican-controlled Congress, according to the trade group.
- Push for regulatory relief, CFPB exemptions. Congress and regulators, including the CFPB, have agreed that credit unions did not cause the financial crisis on numerous occasions and, as a result, NAFCU said it will again continue to press the CFPB to use its authority under Section 1022 of the Dodd-Frank Act to exempt credit unions from its regulations. NAFCU said it will also seek greater CFPB reforms and accountability, including replacing the director with a commission. NAFCU reminded it was the only financial services trade association to oppose CFPB authority over credit unions, and it will continue to urge the Bureau to make better, more effective decisions in how it exercises its authority.
- Repeal the Durbin Amendment. During 2016 legislation was introduced in the House and passed out of committee to repeal the Dodd-Frank Act’s Durbin amendment. In 2017, NAFCU said will continue to push for repeal of the failed Durbin measure and to fight against any efforts to expand interchange price caps to credit cards. NAFCU said it will also continue to advocate on behalf of our member credit unions for a reasonable return from interchange fee income.
- Protect CUs’ interests in housing finance reform-Effective housing finance reform that preserves a government guarantee, maintains unfettered access to the secondary market and ensures fair pricing for credit unions based on loan quality, not volume, will remain a top legislative issue for NAFCU for 2017 as lawmakers continue deliberations on the disposition of the government-sponsored enterprises, including Fannie Mae and Freddie Mac, the association said. NAFCU is also monitoring progress on the Federal Housing Finance Agency’s proposal on membership requirements for the Federal Home Loan Banks, and NAFCU will continue to work with the FHFA to ensure the agency’s activities do not hinder credit unions’ ability to sell mortgages on the secondary market.
For NAFCU’s complete list of priorities, visit CUToday.info’s The gov.
Separately, CUNA sent a letter to the House and Senate outlining its focus for the 115th Congress.
“We feel there is a great need for return to common sense regulatory reform,” said Donovan. “The one-size-fits-all approach we have been experiencing over the last several years has not worked for main street or for local member-owned credit unions and their members. It has created a rigged system favoring the largest financial institutions that can afford to comply with regulations that are complex and overly burdensome.”
Donovan added that credit union members are feeling the effects of this approach to regulation through higher priced products and services, and more limited offerings.
CUNA’s letter, signed by President and CEO Jim Nussle, focused on reform to the CFPB and taking corrective action to address the impact of regulations that have been finalized over the last several years and those that are being finalized.
Key points, as outlined by CUNA, include:
- Congress Should Return to Common-Sense Regulation of Credit Unions—Credit unions accept that they must operate in a regulated environment. Common-sense regulation balances safety and soundness, consumer protection, and members’ needs. The behavior of the large Wall Street banks, some nonbank financial services providers, and other abusers of consumers caused the greatest financial crisis since the Great Depression, throwing this balance out of whack. The post-crisis regulatory response, which has resulted in the Consumer Financial Protection Bureau (CFPB) applying one-size-fits-all consumer protection regulation to all providers regardless of size, structure, or history of consumer service, has further disrupted the common-sense balance . . .
- CFPB Structural Reform Would Enhance Consumer Protections—As presently structured, the CFPB is an anomaly in the federal government. The CFPB’s extraordinary authority is vested in a single person absent of appropriate levels of Congressional oversight. Conforming the CFPB to include a multi-member Commission would enhance consumer protection by ensuring that diverse perspectives are included in final rules and prevent disruptions and market uncertainty caused by personnel changes. Ultimately, credit union members benefit from policymaking that includes more voices. The CFPB’s current funding scheme is also ineffective, as it takes power out of the hands of consumers’ elected representatives, does not incentivize the CFPB to prioritize resources, and fails to ensure appropriate oversight. Funding the CFPB through appropriations means taxpayers through you and other elected representatives have a voice in the priorities of the CFPB. Credit union members will benefit from a Bureau that is going after the bad guys and is subject to direct oversight and funding by representatives they elect to Congress . . .
- Corrective Action Needed to Mitigate Adverse Impact of CFPB Regulations—We have called on the CFPB to engage in a moratorium on new rulemaking, and we urge Congress to do the same. Through the enactment of common-sense regulatory reform, Congress should also take corrective action to mitigate the adverse impact of recently promulgated CFPB regulations and to stop pending and future rulemakings from harming consumers’ access to safe and affordable financial services from local, member-owned credit unions . . .
For CUNA’s complete list of priorities, visit CUToday.info’s The gov.