Brad Thaler, NAFCU
WASHINGTON—Calling 2015 a “positive” legislative year for credit unions, NAFCU is offering an assessment of CU successes on Capitol Hill and at NCUA, addressing the efforts of the trade association on both fronts.
“We made some important strides in the first session of this Congress,” said Brad Thaler, NAFCU’s vice president of legislative affairs. “I think it was a positive year for credit unions. And, in the second session of Congress in 2016, there are a lot of things we can build off of.”
Among a number of wins this year, Thaler pointed to the Data Security Act of 2015 and the “Highway Bill,” which included the most significant regulatory relief for credit unions in a decade, he noted.
“But at the top of our agenda this year, as always, is protecting the CU tax exemption, and reducing regulatory burden on CUs,” explained Thaler, who noted that bankers made no headway the CU tax status in 2015. “We stayed out of any recommended changes among the Senate working groups. It’s simply important to note that nothing happened on that front in 2015.”
Thaler said that NAFCU worked diligently on data security legislation, reminding that NAFCU CEO Dan Berger testified on data security issues before the House Small Business Committee in April and was invited to represent credit unions at the President’s Cybersecurity Summit in February.
Data Security
“We have kept data security issues on the forefront,” said Thaler. “We have been a leader in working on this issue on Capitol Hill.”
Thaler said that the trade association this year continued to work with Congress on greater oversight of NCUA, and greater transparency at the agency.
“We saw legislation introduced and marked up in both the House Financial Services Committee and Senate Banking Committee, as part of the (Richard Shelby,R-AL) Shelby regulatory relief bill, to provide greater oversight of the NCUA budget. We also saw the hearing in July with Chairman (Debbie) Matz before the Financial Services Committee.”
Thaler emphasized that Congress paid a great deal of attention to NCUA’s risk-based capital rule, and that despite the agency passing a final RBC rule, Capitol Hill is requesting that NCUA provide more information on RBC, and take time to stop and study the rule before implementation.
Thaler noted there were Congressional efforts to provide relief for CU member business lending, and that NCUA took steps to bring about MBL reform.
What's Ahead
Looking ahead, Thaler said NAFCU lobbyists will focus their efforts between now and Jan. 4 on laying the groundwork for next steps toward passage of legislation that would bring credit unions much-needed regulatory relief.
“NAFCU will be pushing for final passage and enactment of a number of proposals on data security, regulatory relief, NCUA budget transparency, CFPB structure and more when lawmakers return from the holiday recess,” he said.
Thaler addressed key bills awaiting further action during the second session of the current Congress:
- Data security: H.R. 2205, the Data Security Act of 2015, approved by the House Financial Services Committee and sent to the House floor in early December, would require merchants to adhere to national standards on data security and hold them accountable for data breaches occurring on their end. A companion measure, S. 961, awaits Senate action.
- NCUA budget transparency: H.R. 2287, the National Credit Union Administration Budget Transparency Act, also awaits House action. It would require NCUA to publish its draft budgets in the Federal Register and to allow comments from the public; yearly hearings on the budget would also be required. Its Senate companion measure is S. 924.
- Member business lending: NAFCU continues to press for committee and House action on legislation to ease statutory constraints on credit union business lending to members.
- CFPB structural improvements: The trade association continues to press for a change in CFPB’s leadership structure to provide for a bipartisan, five-person commission instead of the single director post.
NAFCU is also pressing for action on S. 1484, the Financial Regulatory Improvement Act. Introduced by Sen. Shelby, S. 1484 contains many of the above provisions, including NCUA budget hearings. It would also grant safe harbor qualified-mortgage status for certain loans held in portfolio. Cleared by the committee in May, it awaits Senate action.
Top Priorities
On Jan. 4, NAFCU sent its top legislative and regulatory priorities to House and Senate leaders in a letter from NAFCU President and CEO Dan Berger. For the list, click here.