June 25, 2014

NAFCU urges Senate Banking action on IOLTA bill

June 26, 2014 – NAFCU Vice President of Legislative Affairs Brad Thaler urged Senate Banking Committee leaders Wednesday to support and pass H.R. 3468, which would ensure credit unions have parity with FDIC-insured institutions when it comes to escrow accounts, such as Interest on Lawyers Trust Accounts.

"Maintaining parity between the coverage provided by the National Credit Union Share Insurance Fund (NCUSIF) and the Federal Deposit Insurance Corporation (FDIC) on all types of deposits and accounts is imperative and a longstanding goal of NAFCU member credit unions," Thaler wrote to Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, on Wednesday.

The bill passed the House in May.

Advancing a key element of NAFCU's five-point plan for credit union regulatory relief, H.R. 3468, the "Credit Union Share Insurance Fund Parity Act," would advance parity for certain accounts in credit unions, including IOLTAs, protected by the National Credit Union Share Insurance Fund with those accounts in banks that are backed by the FDIC Deposit Insurance Fund. The bill was introduced by Reps. Ed Royce, R-Calif., Ed Perlmutter, D-Colo., Gary Miller R-Calif., and Brad Sherman, D-Calif.