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	Carrie Hunt, NAFCU's general counsel and vice president of regulatory affairs (left, with NAFCUChief Economist DavidCarrier), discussed activities at NCUA and the ConsumerFinancial Protection Bureau. – NAFCU photo

June 15, 2012 – The European economic landscape and talk in the U.S. about tax reform are among the key issues NAFCU is watching in its efforts to ensure credit unions' best interests, according to association representatives speaking during Thursday's free member call-in.

NAFCU President and CEO Fred Becker told call-in participants about the association's recent actions to encourage NCUA to be prepared to take mitigating action in the event problems in Europe spill over to the U.S. financial system – particularly the banking sector – and trigger a "flight to safety" of consumer deposits in credit unions.

With talk heating up again about tax reform, NAFCU Vice President of Legislative Affairs Brad Thaler emphasized the need for increased credit union vigilance to make sure lawmakers understand their organizations and why they deserve to keep their tax exemption. Thaler said preserving the tax exemption remains NAFCU's top priority, and the association is working continuously to ensure it remains intact in any tax-reform package.

Senate Finance Chairman Max Baucus, D-Mont., has declared that "everything's on the table," and Thaler said it's critical that credit unions take a direct hand in advocating for their tax-exempt status. "No one is targeting the credit unions," he said. But credit unions "need to be vigilant" in ensuring lawmakers understand how credit unions promote economic growth (and jobs) and serve consumers.

Carrie Hunt, NAFCU's general counsel and vice president of regulatory affairs, said the Dodd-Frank Act is going to keep the association's regulatory affairs team – and member credit unions – busy through 2012 and well into 2013.

Hunt said the CFPB has begun a real focus on non-depository institutions that were largely unsupervised by federal authorities prior to the 2010 enactment of the law. But despite that focus, there are a number of other activities under way of specific interest to credit unions.

She noted the CFPB's field hearing last month on prepaid cards and the bureau's request for information from the public on general-purpose, reloadable prepaid cards. The information the bureau receives in response to that request will guide it in future rulemaking for depository institutions.

Also gaining attention is the matter of overdraft protection programs, on which the CFPB is taking comments through July 9. Hunt said NAFCU soon will submit its official comment.

Hunt also talked to participants about the CFPB's ongoing work on mortgage disclosures and rulemaking as well as activities at NCUA. She said NCUA is continuing its emphasis on risk – not only interest-rate and credit risk, but operational risk as well. In focusing on operational risk, she explained, the agency is increasing its scrutiny of decision-making by credit union boards and management.

NAFCU's June 14 member call-in will be archived and posted soon on this website.