ARLINGTON, Va.–Credit unions are hopeful that the new Congress, with Republican majorities in the House and Senate, and Republican President-Elect Donald Trump will help bring about regulatory relief.
Both CUNA and NAFCU indicated they believe the new Congress and administration will be receptive to their message regarding the regulatory burden on credit unions. CUNA CEO Jim Nussle, acknowledging the divisiveness of the presidential race, said he believes credit unions can even play a role in the “healing process.”
Brad Thaler, NAFCU’s VP-Legislative Affairs, told CUToday.info the association has been in touch with Trump’s organization regarding issues of concerns to credit unions.
Thaler noted that Sen. Mike Crapo (R-ID) is expected to become the new chairman of the Senate Banking Committee when the new Congress begins its session in 2017, and noted that “he has a long history of working with credit unions and on regulatory relief.”
He said 97% of the candidates who received backing from NAFCU’s PAC won their races.
Thaler described the change in the administration and in Congress as a “window of opportunity” to move forward some credit union priorities.
There is still a lame duck session of the current Congress that must meet, and Thaler said it’s uncertain what, if anything, might occur. He said most Republicans may want to wait until the new Congress begins before aggressively pursuing their agenda.
Where the real “wild card” lies, said Thaler, is what will happen at the regulatory agencies, including NCUA and the CFPB. NCUA Chairman Rick Metsger, a Democratic appointee, could be replaced as chairman should the Trump Administration choose to elevate current board member Mark McWatters to the position. Such a change took place when Debbie Matz replaced Michael Fryzel as chairman. The NCUA board also continues to have a vacancy. Metsger’s term expires in August 2017, so Trump appointees will eventually fill out the entire board.
And just to add to the questions related to NCUA, McWatters is also currently nominated for a seat on the Export Import Bank, meaning that if approved by the Senate he could even become that organization’s chairman.
What might happen at the CFPB is even more uncertain. An Appeals Court has already ruled that the structure of the CFPB with its single director who isn’t accountable to any other body is unconstitutional. Congress could move to change that structure and create a board to oversee the CFPB, potentially removing current director Richard Cordray in the process.
“We could see changes in the structure of the CFPB and in rulemaking,” said Thaler. “There are a lot of changes to be determined.”
Meanwhile, in a letter to credit unions today, CUNA CEO Jim Nussle wrote, “I am launching credit unions' attack to reduce regulatory burden now - and I need you.
“Each year America's credit unions face upward of $7 billion in excessive regulatory burden, which results in over $70 a year being taken from the pockets of every single credit union member in America,” said Nussle. “We must continue to focus on this critical issue. We pledge to work with the Trump administration and the new Congress on easing regulatory burden for America's credit unions and the millions of American consumers they serve. This has been CUNA's highest priority and will remain so going forward.”
Nussle then went on to add, “There is no question that this has been a difficult, divisive presidential campaign – regardless of which candidate you backed. But now, as Americans, we must come together and focus on what we can and must do to unite this nation. America's credit unions reflect a broad cross-section of the American people, and I can think of no better group of people to immediately begin that healing process.”
CUNA has sent a letter to the Trump transition team that can be found in CUToday.info’s The Gov.
CUToday.info has additional analysis of how credit union-backed candidates did in the elections here.