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NAFCU Hails President Obama's Signing Into Law IOLTA Parity for Credit Unions

Washington (Dec. 18, 2014) – National Association of Federal Credit Unions (NAFCU) President and CEO Dan Bergertoday hailed President Obama's signing into law H.R. 3468, the "Credit Union Share Insurance Fund Parity Act." The legislation will help ensure credit unions parity with banks on escrow accounts such as Interest on Lawyer Trust Accounts (IOLTAs).

"This is a big victory for the credit union industry, and we thank President Obama for his action on this matter," said Berger. "Having parity between the coverage under the National Credit Union Share Insurance Fund and the FDIC on all types of deposits and accounts has been one of our regulatory relief goals for credit unions."

"We thank the bill's House sponsors, Reps. Ed Perlmutter, D-Colo., and Ed Royce, R-Calif., as well as Sens. Angus King, I-Maine, Jon Tester, D-Mont., Deb Fischer, R-Neb., and Mark Warner, D-Va., for introducing a similar bill in the Senate. We also thank Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, for their leadership in advancing this legislation," Berger continued.

In Berger's letter to the president last week, he noted, "Consumers often do not distinguish between the government backing on accounts at financial institutions. It is important that the law dictate that there is no difference in coverage, so as not to favor one type of institution over another in the marketplace."

The measure will help ensure that federally insured credit unions have parity with FDIC-insured institutions with respect to escrow accounts such as IOLTAs – advancing a key aspect of NAFCU's five-point plan for regulatory relief for credit unions.

Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org