WASHINGTON—Expansion of the Military Lending Act, alternative solutions to postal banking and protecting credit union interests in the upcoming 2022 National Defense Authorization Act (NDAA) were just some of the issues addressed last week during the Defense Matters Forum.
As CUToday.info reported earlier, this year’s Defense Matters Forum, hosted by the Defense Credit Union Council (DCUC) was hosted virtually, instead of the live event at the Marriott Marquis Hotel in Washington where it is typically held in conjunction with CUNA’s Governmental Affairs Conference.
Instead, DCUC’s annual advocacy update was held from the Big Whig Media studios in downtown Washington.
Congressman Speaks to Meeting
The Forum was co-hosted by DCUC President/CEO Anthony Hernandez, and John McKechnie, senior partner at Total Spectrum. Over the course of the program, they were joined by Congressman Anthony Brown (D-MD) and NCUA Chairman Todd Harper, both of whom addressed issues affecting defense credit unions.
Rep. Brown, a veteran, shared a message highlighting the importance of credit unions in serving military and veteran communities. He discussed the fundamental role they have played throughout the pandemic and their continued importance in the recovery process.
Harper shared his vision for his chairmanship of the NCUA, saying his priorities included capital and liquidity, consumer financial protection, cyber security, and diversity, equity, and inclusion. He discussed how the guiding principles will help move the credit union industry forward as it addresses the economic fallout from the pandemic, how they work to protect consumers, and improve financial education, DCUC reported.
‘Profound Implications’
Harper noted that according to statistics from the Department of Defense, “nearly 46% of active duty military members are 25 years old or less. This age range is when many young service members have their first experiences with the financial system, such as opening a credit union account, taking out their first car loan, or getting their first credit card.
“The financial decisions these individuals make can have profound implications for their financial well-being later in life and even on our military’s readiness,” Harper continued. “Each of you can play a pivotal role in helping our service members handle all the major events in their personal financial life, from buying a home, to making the most of their GI Bill benefits, to planning for retirement.”
Discussion of Issues
Following comments from Brown and Harper, Hernandez and McKechnie continued their discussion of issues affecting defense credit unions and DCUC’s priorities for the year ahead.
Among the topics the two speakers addressed, as summarized here by to the Defense Council:
- DCUC’s Caution in Expansion of the Military Lending Act (MLA) Nationwide
“The Veteran and Consumers Fair Credit Union Act and Fair Debt Collection use the MLA as a model for expanding additional rules and regulations nationwide. DCUC supports MLA and the protections it provides our servicemembers. However, DCUC is wary of the unintended consequences and burdens that additional regulations will cause.”
- Concerns with credit union inclusion under the Community Reinvestment Act (CRA)
“CRA regulations were put in place to combat redlining by banks in the 1970s. In recent years, Congress has considered expanding these regulations to credit unions. DCUC is concerned with these additional regulations, because imposing CRA restrictions on credit unions would make it more difficult for them to accomplish the work they already do in rebuilding our communities.”
- Alternative solutions to Postal Banking—Credit Union initiatives
“There has been talk of using the USPS to bring financial services to underserved areas. Hernandez has led arguments on using credit unions instead, because of their experience serving those of more modest means. The USPS delivers mail, credit unions deliver financial services.”
“The focus should be on helping credit unions expand their fields of membership to serve more members,” Hernandez said.
- Reintroducing Veteran Business Lending Exemptions
DCUC said it wants to see the Veteran Business Lending Exemption reintroduced, because it is one of the “best ways to help our military members,” stated Hernandez.
“Military and Veteran members are denied business loans at a higher rate because they are seeking micro-loans, lack credit history, and have little collateral. Excluding extensions of credit made to veterans and military members from member business loan limits will help close the gap,” DCUC said.
- Protecting credit union interests in the upcoming 2022 NDAA
The NDAA is always an area of concern, however, and Hernandez said he is optimistic, because of past bi-partisan support and new leadership on the Senate Armed Services Committee. “However, DCUC will not rest easy, because the banking lobby won’t,” Hernandez said.
- Revisiting the Credit Union Governance Modernization Act
DCUC’s Military Advocacy Committee brought this issue to DCUC’s attention. “They are in favor of amending rules for expelling members and DCUC will work to persuade NCUA that it is the right decision,” Hernandez said.
‘Many Changes’
“DCUC is expecting many changes in the year ahead with the new administration. While these are some of the issues that DCUC is expecting to see, DCUC will remain vigilant to any new initiatives introduced by the new Congress,” stated Hernandez. “For the time being, DCUC believes Congress’ focus will remain on COVID relief, but over time, issues like regulatory relief and data security will return to the forefront. No matter what happens, DCUC will remain proactive in working for defense credit unions.”
Hernandez also noted he was satisfied with how the annual DCUC event was conducted virtually.
“This was a first for DCUC,” Hernandez told CUToday.info. “The DCUC Staff worked very hard and very closely with Big Whig Media experts in generating graphics, scripts, and edits. I am very thankful for our keynote speakers and for our sponsors who made this a great program. Now, our work begins in advocating for our members.”