February 21, 2014

NAFCU watching for tax, CFPB reform on Capitol Hill this week

NAFCU lobbyists will be on Capitol Hill this week sharing the findings of the association's new credit union tax exemption study as House Ways and Means Chairman Dave Camp, R-Mich., prepares to release a "discussion draft" on tax reform to committee members.

CU Tax Exemption Study Cover

To date, lawmakers and their staff have assured NAFCU that the credit union exemption is not targeted in any specific tax reform proposal, but the association is remaining vigilant. Preserving credit unions' federally tax-exempt status is the association's top priority.

The House and Senate are returning to work this week following their recent recess. In addition to tax reform, lawmakers will also be looking at the following:

  • Housing finance reform: Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, may be close to sharing or introducing legislation on housing finance reform. NAFCU continues to advocate for guaranteed credit union access to the secondary mortgage market and loan pricing that prioritizes loan quality over quantity.
  • CFPB structural reform: H.R. 3193, the "Consumer Financial Protection Safety and Soundness Improvement Act," is supported by NAFCU and is expected to be considered on the House floor this week.
  • Flood insurance premium hike delay: The House is scheduled to consider on the floor this week a modified version of the Senate-passed S. 1926, the "Homeowner Flood Insurance Affordability Act," to protect homeowners from sharp flood insurance premium hikes.

Also of note this week: Federal Reserve Board Chair Janet Yellen testifies before Senate Banking Committee Thursday on monetary policy (she testified Feb. 11 before the House Financial Services Committee); the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises will hold a hearing on the Dodd-Frank Act's impact on asset-backed securities.

NAFCU is also watching for any developments relating to the nomination of Mark McWatters to the NCUA Board.