Newsroom

September 28, 2017

Berger, Sen. Scott talk CUs, reg relief

NAFCU President and CEO Dan Berger met with Sen. Tim Scott, R-S.C., Thursday to discuss issues affecting the credit union industry and ways to reduce regulatory burden to make it easier for credit unions to serve their members and communities.

Scott, who spoke to hundreds of credit union representatives at NAFCU's Congressional Caucus earlier this month, reiterated his confidence in credit unions' mission to serve the underserved during the meeting.

Scott recently introduced the NAFCU-backed Credit Score Competition Act that would require the Federal Housing Finance Agency to create a process for validating and approving credit scoring models that take into account non-traditional credit indicators for mortgage purchases.

Under the current system, Fannie Mae and Freddie Mac use an outdated model that doesn't take into account rent utility and cell-phone bill payments, which Scott says "disproportionately hurts African-Americans, Latinos, and young people who are otherwise creditworthy."

The two also talked about upcoming legislative efforts that will create a healthier regulatory environment for credit unions to provide credit to consumers and small businesses, which is a key tenet of NAFCU's regulatory reform agenda.