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WASHINGTON – National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt today sent a letter to Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Chuck Schumer (D-NY) expressing support for S. 2155, The Economic Growth, Regulatory Relief and Consumer Protection Act. The letter describes key components of the bill that would positively impact the credit union industry and says that anyone in support of this legislation is in support of credit unions.

"Regulatory burden is the top challenge facing credit unions today. Reducing burdensome and unnecessary regulatory compliance costs is the only way for credit unions to thrive and continue to provide their member-owners with basic financial services and the exemplary service they need and deserve," said Hunt. "NAFCU believes that credit unions must have a positive regulatory environment that allows them to succeed.

"We are pleased to see the coalition of Republicans and Democrats come together to get a package of relief and economic growth ideas that can get bipartisan support. We thank the cosponsors for their leadership in crafting this package," Hunt added.

Since the second quarter of 2010, the credit union industry has lost more than 1,700 federally-insured credit unions – more than 22 percent of the industry. The overwhelming majority of these were smaller institutions with less than $100 million in assets. A trend that has accelerated since the passage of the Dodd-Frank Act.

Throughout the letter, Hunt outlines several provisions of the act that would benefit credit unions, including:

• Section 101 would provide key regulatory burden relief and safe harbor for certain mortgage loans that are made by certain credit unions and held in portfolio.
• Section 104 would provide important relief from new Home Mortgage Disclosure Act (HMDA) reporting requirements for smaller lenders.The CFPB's new rule, that went beyond the parameters of the Dodd-Frank Act, created new burdens and costs for many small lenders, with little likely benefit or additional data.
• Section 105 would exempt loans for one- to four-unit non-owner occupied dwellings from the credit union member business lending (MBL) definition, which would free up capital for additional lending to small businesses to help foster economic growth.
• Credit unions work for the best interest of their members in a mortgage transaction and may be able to provide a better rate to a member as they head to closing. Section 110 provides credit union members with the important ability to not have to wait three days if a credit union is able to provide them with better terms before closing.

NAFCU has been encouraging all credit unions to reach out to their senators ahead of the vote, expected later this week, to urge them to support the bill.

Creating a positive regulatory environment for credit unions with appropriate and tailored regulations is part of NAFCU's 2018 advocacy priorities.

For full text of the letter, please click here.

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The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.