By Carrie Hunt
Credit unions continue to enjoy a positive reputation among lawmakers and regulators for their focus on the needs of their members. Despite that, and as much as we hear of the Trump administration's push for regulatory relief, NAFCU knows that making sure credit unions get real relief from burdensome rules will require vigilance and persistence – and we're bringing both.
The door is opening. If you were watching, you'll recall Treasury Secretary Steve Mnuchin telling the Senate Banking Committee in a recent hearing of plans to consider Dodd-Frank Act relief for credit unions under $10 billion in assets. Though not the blanket application we are pushing for all credit unions, it's a start, and we're working with Mnuchin and his staff to ensure plans translate to action.
NAFCU, this year marking its 50th year representing credit union interests in Washington, is as focused as ever on winning the industry the regulatory flexibility it needs to effectively and efficiently serve the nation's now more than 107 million credit union members.
We're also encouraging credit unions to mobilize those 107 million members – constituent voices – in advocacy to ensure lawmakers understand how their actions affect voters back home.
Back in Washington, NAFCU is energetically pursuing a substantial list of legislative and regulatory priorities. Here are the key ones in play now.
Regulatory relief
The Financial CHOICE Act, sponsored by House Financial Services Committee Chairman Jeb Hensarling (R-TX), as an alternative to the Dodd-Frank Act, contains numerous regulatory reforms NAFCU supports – eased mortgage rules, an examination of appropriate risk capital levels, and an end to the CFPB's de facto fair practices regulation by enforcement order (UDAAP authority). But this package is 600 pages long, it has some things we do not support (such as pulling NCUA into the appropriations process), and lawmakers have made clear that this bill was always expected to be a starting point, not an end.
This bill has begun moving through the legislative process but has quite a way to go still, and the Senate will put forth its own version of regulatory relief. NAFCU is pursuing all avenues – through meetings, letters and testimony on Capitol Hill – to help ensure any final bill, or series of bills, advances credit union interests.
And Dodd-Frank reform isn't the only relief vehicle in play. We continue to press the CFPB to exempt credit unions from more of its rules and to prevent future rulemaking – such as the small-business data collection requirements being contemplated – from being added to the giant heap of rules credit unions are struggling under now.
We're also looking forward to more regulatory relief from the NCUA in coming months. NAFCU will continue to press for refunds to credit unions directly from the Temporary Corporate Credit Union Stabilization Fund.
Tax Reform
With the president's fiscal 2018 budget out and House and Senate committees turning to tax reform, NAFCU is reaching out to lawmakers and Treasury to ensure that anyone tinkering with the nation's tax code recognizes the value of credit unions and their federal tax exemption.
We expect the banking trades to keep pushing their misinformation about credit unions in order to undermine credit unions' tax status. NAFCU is working to stay ahead of that by educating Congress and the administration about the billions of dollars federally-tax-exempt credit unions generate for the nation's economy. For more, read the study (www.nafcu.org/cutaxexemption) we released in January.
Reform for Fannie Mae and Freddie Mac
The Trump administration and a bipartisan group of U.S. senators are working to address an issue that has gone unresolved for nearly a decade: how to overhaul Fannie Mae and Freddie Mac, the mortgage-finance giants the government took over in 2008. NAFCU's position is unchanged – we strongly support a viable, strong secondary market with GSEs that have a government backstop; and equal access to the market for credit unions and fair pricing based on loan quality, not volume.
The current climate in Washington is challenging, but with challenges come opportunities. NAFCU will continue to staunchly advocate for credit union interests, and we know credit unions will too.
Carrie Hunt is VP-Government Affairs and General Counsel with NAFCU.