Newsroom

July 12, 2017

NAFCU writes House appropriators on CU concerns

NAFCU is urging the House Appropriations Committee to approve $250 million in funding for the Community Development Financial Institutions Fund, restore funding for the NCUA's Community Development Loan Fund, provide for a five-member CFPB commission and keep the NCUA out of appropriations when it marks up a spending bill today.

Brad Thaler, NAFCU's vice president of legislative affairs, conveyed thanks for the work lawmakers have done on the fiscal 2018 spending package on financial services and general government, but he noted the above issues as being of key concern to credit unions and offered recommendations in a letter to committee Chairman Rodney Frelinghuysen, R-N.J., and Ranking Member Nita Lowey, D-N.Y.

CDFI Fund: Thaler urged the panel to approve $250 million in fiscal 2018 funding for the CDFI Fund. The 287 CDFI-certified credit union (as of Jan. 31) represent 27 percent of total institutions certified and hold more than 50 percent of total CDFI assets. "Clearly, CDFI credit unions are critical partners in the CDFI Fund's mission," Thaler wrote.

"The CDFI Fund grant program helps credit unions serve communities and consumers that large banks do not focus on," Thaler urged. He also sought restoration of CDRLF funding.

CFPB structure: "Given the broad authority and awesome responsibility vested in the CFPB, a five-person commission has distinct consumer benefits over a single director," Thaler wrote. He said a commission would allow several perspectives and robust discussion of consumer protection issues. He urged support for an amendment expected from Rep. Mark Amodei, R-Nev., to create a bipartisan commission.

NCUA funding: Thaler stated NAFCU's support for several provisions in Title IX of the measure that would benefit credit unions, but he reiterated NAFCU's opposition to placing the NCUA under the congressional appropriations process. "The current structure of the NCUA, including a three-person board, has a track record of success, and we would urge the committee to strike this section from the bill," Thaler urged.

In further comments on Title IX, Thaler urged the panel to ensure unregulated entities, such as payday lenders, "do not escape oversight."