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May 12, 2015
NAFCU, weighing in for today's Hill hearings, pushes reg relief
Writing in advance of regulatory-burden focused hearings at House Financial Services subcommittees today, NAFCU Vice President of Legislative Affairs Brad Thaler on Tuesday urged lawmakers to act on NAFCU's five-point plan for regulatory relief.
The Subcommittee on Oversight and Investigations is holding a hearing titled "The Dodd-Frank Act and Regulatory Overreach." Thaler wrote subcommittee Chairman Sean Duffy, R-Wis., and Ranking Member Al Green, D-Texas, and urged them to follow NAFCU's five-point plan "to enact common-sense regulatory relief that will enable credit unions to better serve their 100 million member-owners."
Thaler pointed out that 97 percent of NAFCU members in 2011 reported spending more time on compliance issues than they did in 2009, with more than 70 percent saying they had non-compliance staff taking on compliance-related duties. Furthermore, he noted that since the second quarter of 2010, 1,200 federally insured credit unions have closed – 96 percent of which had less than $100 million in assets.
Also today, the Subcommittee on Capital Markets and GSEs is holding a hearing titled "Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens, Part II." Thaler urged subcommittee Chariman Scott Garrett, R-N.J., and Ranking Member Carolyn Maloney, D-N.Y., to consider H.R. 1188, the "Credit Union Small Business Jobs Creation Act," which would raise the arbitrary credit union member business lending cap.
"As the economy recovers, credit unions continue to serve as an important resource for small businesses to obtain capital oftentimes in the event that they have been turned away from other financial service providers," Thaler wrote. "While credit unions are equipped to help small businesses, their efforts, unfortunately, are severely hindered by the arbitrary credit union member business lending cap."
Thaler also touted H.R. 989, the "Capital Access for Small Businesses and Jobs Act," which would authorize NCUA to allow credit unions more access to supplemental capital.
The Subcommittee on Oversight and Investigations is holding a hearing titled "The Dodd-Frank Act and Regulatory Overreach." Thaler wrote subcommittee Chairman Sean Duffy, R-Wis., and Ranking Member Al Green, D-Texas, and urged them to follow NAFCU's five-point plan "to enact common-sense regulatory relief that will enable credit unions to better serve their 100 million member-owners."
Thaler pointed out that 97 percent of NAFCU members in 2011 reported spending more time on compliance issues than they did in 2009, with more than 70 percent saying they had non-compliance staff taking on compliance-related duties. Furthermore, he noted that since the second quarter of 2010, 1,200 federally insured credit unions have closed – 96 percent of which had less than $100 million in assets.
Also today, the Subcommittee on Capital Markets and GSEs is holding a hearing titled "Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens, Part II." Thaler urged subcommittee Chariman Scott Garrett, R-N.J., and Ranking Member Carolyn Maloney, D-N.Y., to consider H.R. 1188, the "Credit Union Small Business Jobs Creation Act," which would raise the arbitrary credit union member business lending cap.
"As the economy recovers, credit unions continue to serve as an important resource for small businesses to obtain capital oftentimes in the event that they have been turned away from other financial service providers," Thaler wrote. "While credit unions are equipped to help small businesses, their efforts, unfortunately, are severely hindered by the arbitrary credit union member business lending cap."
Thaler also touted H.R. 989, the "Capital Access for Small Businesses and Jobs Act," which would authorize NCUA to allow credit unions more access to supplemental capital.
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