WASHINGTON—During a week in which Congress is in recess, NAFCU and CUNA are focusing on the rest of 2018 and what’s needed for the movement from Washington following President Trump’s signing of the regulatory relief legislation last week.
“We enjoyed a tremendous victory last week but a lot of work is left to be done,” said CUNA Chief Advocacy Officer Ryan Donovan. “We are pleased we were able to able to get the regulatory relief bill across the finish line before Memorial Day. Now, as we look into second half of 2018 and approach the elections and the potential for a new Congress next year, there is still a lot we need from Washington to revolutionize the operating environment for credit unions so they can better serve their members.”
Donovan pointed out that last week, after the House passed S 2155, CUNA sent a letter to the House Financial Services Committee encouraging it to take up several measures to address additional regulatory relief priorities.
“We encouraged the Committee to consider legislation implementing a multi-member, bipartisan commission at the Bureau of Consumer Financial Protection; engage in a second tranche of regulatory relief legislation that includes legislation to delay NCUA’s risk-based-capital rule, enactment of the Tailor Act, enactment of legislation dealing with the technical corrections to privacy notifications requirements, increase the threshold for examination at the Bureau of Consumer Financial Protection, and consider examination fairness legislation that brings about improvements to the TRID rule.”
Donovan also noted that CUNA is focused on assisting credit unions facing Americans With Disabilities Act lawsuits, as CUs face the potential for wave of lawsuits targeting overdrafts.
NAFCU said that high on its lists of issues ahead are getting CUs relief from the NCUA's risk-based capital rule and creating a national data security standard.
The trade association also noted that with both the House and Senate in recess this week, credit unions should connect with legislators while they're back in their home districts and states, and pointed to its Grassroots Action Center for resources.
White Paper
Separately, CUNA Tuesday submitted a white paper to the Bureau of Financial Consumer Protection to "further ensure regulations are tailored and streamlined."
"As the Bureau has acknowledged, credit unions were not responsible for the 2008 financial crisis, and were instead the trusted institutions that consumers looked to for safe and competitively priced financial products and services," the paper said. "Therefore, CUNA strongly believes the Bureau’s efforts and resources should focus on the problem actors in the industry, not credit unions."
CUNA's white paper is a collaborative effort, with contributions from credit unions, prepared in response to the Bureau's series of Requests for Information (RFI) seeking evaluation from the industry.
Key recommendations from CUNA include the following:
- The Bureau must understand the unique structure and business model of credit unions as member-owned financial services institutions that are inherently consumer friendly
- Thus, the Bureau must focus on the problem actors in the industry, not credit unions. To do so, actions must be taken to provide exemptions for credit unions in current and future regulations
- The Bureau must actively engage with the credit union industry through meetings, roundtable discussions, and the preservation of its Credit Union Advisory Council
- The Bureau must adjust its rulemaking processes so it can effectively receive feedback from the financial services industry
- The Bureau must work with the NCUA regarding any rulemakings or actions involving credit unions
The white paper can be found in CUToday.info's Open Vault.