In February 2013, at the beginning of the 113th Congress, NAFCU called on lawmakers to enact broad-based regulatory relief for credit unions. Credit unions did not contribute to the financial crisis yet are still subject to increasing regulatory requirements mandated under the Dodd-Frank Act.
NAFCU believes the five-point plan outlined below (and described in the February 2013 letter to Congressional leaders) is essential to give the credit union industry the continued ability to serve its member-owners in today's environment.
In September 2014 Linda McFadden, President and CEO of XCEL Federal Credit Union, told the Senate Banking Committee that "enough is enough" when it comes to regulating the credit union industry. The hearing also covered NCUA's risk-based capital proposal, member business lending and regulatory relief, and third-party vendors.
In July 2014 David Clendaniel, President and CEO of Dover Federal Credit Union, testified on NAFCU's behalf before the Financial Services Financial Institutions Subcommittee. In addition to seeking relief from regulation stemming from the Dodd Frank Act, Mr. Clendaniel was able to update Congress on NCUA's risk-based capital proposal and encourage additional Congressional oversight as the rule making process moves forward.
In May 2014 the House considered and passed by voice vote a standalone measure (H.R. 3468) that amends the Federal Credit Union Act to require that pass-through share insurance coverage be provided when a credit union member holds funds on behalf of a nonmember in trust accounts, such as Interest on Lawyers Trust Accounts (IOLTAs). In July 2014 Senate legislation (S. 2699) was introduced to address this issue. NAFCU continues to advocate for Senate action on IOLTAs.
In April 2013 Robert Burrow, President and CEO of Bayer Heritage FCU in Proctor, West Virginia, testified on behalf of NAFCU before the House Financial Services Financial Institutions Subcommittee. The hearing focused on the regulatory environment for credit unions and provided a critical opportunity for NAFCU and the credit union industry to educate members of Congress about the daunting challenges credit unions face. In conjunction with the hearing Financial Services Committee Vice Chairman Gary Miller (R-CA) announced his intention to introduce a regulatory relief package for credit unions.
Representative Miller introduced H.R. 2572, the "Regulatory Relief for Credit Unions Act of 2013." The centerpiece of the legislation is a risk-based capital proposal that revives concepts supported by the credit union industry in previous legislative efforts such as the Credit Union Regulatory Improvements Act.
The provisions in H.R. 2572, as reflected in NAFCU's five-point plan, would:
With Member Business Lending addressed as part of H.R. 688, the Credit Union Small Business Jobs Creation Act, and supplemental capital addressed in H.R. 719, the Capital Access for Small Businesses and Jobs Act, H.R. 2572, the Regulatory Relief for Credit Unions Act of 2013, becomes the third major credit union specific proposal from NAFCU's five-point plan for credit union regulatory relief to be offered in the House this Congress.
Please be assured that NAFCU will continue to push for commonsense regulatory reform on Capitol Hill with an emphasis on the five areas outlined in our plan below.
Download NAFCU's Five-Point Plan for Regulatory Relief
Administrative Improvements to the National Credit Union Administration (NCUA)
Data Security Reforms
NAFCU has stayed at the forefront of this issue and continued to champion credit unions in major media nationwide.
Lawmakers, Regulators Spar Over Regulatory Relief (Credit Union Journal, September 17, 2014)
Credit unions to Senate Banking: Enough is enough (HousingWire, September 16, 2014)
House Committee Gives CUs Some Potential Regulatory Relief (Credit Union Journal, July 30, 2014)
House panel seeks to SCRUB onerous regs (The Hill, June 18, 2014)
NAFCU members see regulatory costs spiking (HousingWire, May 14, 2014)
CFPB's QM Reg Relief Not Enough: Mortgage Execs (Credit Union Times, May 7, 2014)
Trio Of Credit Union Reg Relief Bills Passes House (Credit Union Journal, May 7, 2014)
Trades Rebuff NCUA Reg Relief Claims (Credit Union Times, April 8, 2014)
Read recent letters from NAFCU to members of Congress on the important issue of regulatory relief for credit unions.
10-22-2014 NAFCU Letter to Senator Crapo on Regulatory Relief for Credit Unions
9-26-2014 NAFCU Letter to the Senate on Regulatory Relief for Credit Unions
9-8-2014 NAFCU Letter to the Senate Banking Committee on the Importance of Regulatory Relief for our Nationals Credit Unions
NAFCU Letter to the HFSC on Regulatory Relief Measures for Credit Unions
7-15-14 Testimony from David Clendaniel from the House Financial Services Committee on Financial Institutions and Consumer Credit
5-6-14 NAFCU's Letter in Support for Credit Union Regulatory Relief Measures
5-5-14 NAFCU's Letter in Support of Insurance Parity on IOLTAs (H.R. 3468)
5-5-14 NAFCU's Letter in Support of Changes to the CFPBs Rural Designation Process (H.R. 2672)
9-17-13 NAFCU letter to Rep. Miller regarding Regulatory Relief
6-28-13 NAFCU letter regarding Regulatory Relief Bill H.R. 2572
6-13-13 NAFCU letter regarding regulatory relief
5-7-13 NAFCU letter regarding importance of regulatory relief
4-10-13 Robert. D. Burrow's testimony on the HFSC Subcommittee on Financial Institutions and Consumer Credit
View all NAFCU Policy Letters
Updated October 2014