Newsroom

July 24, 2018

NAFCU focused on securing more CU reg relief

pillarsNAFCU is focused on securing even more relief for credit unions – such as risk-based capital (RBC) standards and website accessibility requirements under the Americans with Disabilities Act (ADA) – that will improve the regulatory environment in which the industry operates. As the industry's Washington Watchdog, the association is in constant contact with key lawmakers, regulators and administration officials to do so.

Today, NAFCU is monitoring a House Financial Services Committee mark-up that includes two bills related to financial technology and mortgage loans. NAFCU has also seen progress made on a number of key issues since the enactment of the NAFCU-backed Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155):

NCUA's RBC rule

Following months of NAFCU advocacy and credit union grassroots efforts, a provision to delay the NCUA's RBC rule by two years has now passed the House three times. NAFCU is engaged with Senate leaders urging them to also approve the provision.

NAFCU supports an appropriate RBC system for credit unions, but has been opposed to NCUA's RBC rulemaking since its passage and has urged the rule be delayed, particularly because of increased regulatory burdens and costs.

The RBC-delay language comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. NAFCU President and CEO Dan Berger met with Posey and Heck to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.

ADA website accessibility

As the association works with Congress, the Justice Department and other stakeholders to obtain website accessibility guidance under the ADA, NAFCU continues to support credit unions facing litigation over the unclear requirements.

NAFCU has filed 16 amicus briefs in support of credit unions, two of which have been filed at the federal appellate level. So far, seven of the complaints in which NAFCU has supported the credit union have been dismissed; a decision at the appellate level could set a heavier precedent than those in district courts.

These dismissal decisions have been cited positively by courts dismissing cases against other credit unions in Virginia, Ohio and Georgia.

National Credit Union Share Insurance Fund (NCUSIF) distributions

Credit unions are to start receiving their portion of the $735.7 million distribution from the NCUSIF this week. NAFCU remains committed to having more monies returned to credit unions from the NCUSIF.

This distribution is the result of the NCUA Board vote last September to merge the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) with the NCUSIF. At the same time, NCUA also elected to raise the NOL of the NCUSIF to 1.39 percent. NAFCU was the only trade association fighting to keep the NOL at 1.3 percent so credit unions could realize the fullest distribution possible; the association continues to urge the NCUA to return the NOL to that level as soon as possible.

Telephone Consumer Protection Act (TCPA)

NAFCU's push for TCPA clarity has been bolstered by two recent court decisions at the federal appellate level that have shown a willingness to more narrowly define an Automatic Telephone Dialing System (ATDS). In addition to the court decisions, the Federal Communications Commission (FCC) has taken steps to address various TCPA issues.

NAFCU has called for the FCC to take a more narrow approach to ensure credit unions can contact members about their accounts without fear of inadvertently violating the TCPA, and has also offered support for a centralized reassigned numbers database. The association's newest Compliance Monitor includes an update on TCPA progress.

Data security

Data breaches at retailers and other entities that handle personal financial data continue to plague consumers. NAFCU has shared with Congress principles credit unions would like to see addressed in any comprehensive cyber and data security legislation, which could happen yet this year.

NAFCU has been active with lawmakers since the massive 2013 Target data breach stressing the need for a legislative solution to reform the nation's data security system. The association supports legislative efforts to create national data security standards – akin to those followed by credit unions – in an effort to curb future breaches.