Activity in Washington, D.C., of Keen Interest to Credit Unions

Over the past two weeks there have been several issues of keen interest to credit unions percolating in Washington, D.C., ranging from a U.S. Senator pushing the IRS to place new requirements on federal credit unions, to the U.S. Senate passing a resolution to stop the Consumer Financial Protection Bureau’s (CFPB) rule on indirect auto lending, to NCUA issuing a notice to the court on the field of membership challenge. All while credit unions continue to push for regulatory relief in the U.S. House! These issues:

• Back in February, U.S. Senator and Finance Committee Chairman Sen. Orrin Hatch (R-UT) publicly questioned NCUA on the validity of the credit union income tax exemption (click here for details). CUNA and NAFCU joined forces on this issue, and NCUA Chairman McWatters sent his response to Sen. Hatch on April 23^rd regarding the credit union tax status, and NCUA’s implementation of the Federal Credit Union Act. Specifically, McWatters highlighted that the removal of the federal tax exemption would create a negative impact on credit unions and the members they serve (along with some intrinsic challenges to the country). Shortly afterwards, on the morning of April 24^th, Sen. Hatch sent a letter to the IRS questioning whether federal credit unions should have more oversight. This entire situation is being monitored closely, and illustrates why it is important to continually educate legislators with a strong and collective voice nationwide on the importance of credit unions in the districts, how they are different, and what they do to help people afford life.
• On April 18^th the Senate passed S.J. Res. 57, which is a measure to stop the CFPB’s 2013 lending bulletin on the indirect auto lending compliance with the Equal Credit Opportunity Act. CUNA had lobbied the Senate to move this resolution forward, as stopping the lending bulletin would help prevent broad sweeping policymaking without the analyst necessary to do so. The concern is not on the aspect of fair lending (which is supported!), but rather the lack of data to support the CFPB’s 2013 bulletin and the fact that that it created guidance without the usual notice and comment period. The joint resolution of disapproval will now go to the House for its consideration, and if signed into law could provide some regulatory relief to credit unions.
• NCUA issued a notice to the court regarding implementing the ruling in the banking industry’s Field of Membership (FOM) legal challenge, and what actions they are taking to comply with the ruling. NCUA shared that it has ceased granting community charters on the basis of the new definitions, and has instructed those affected credit unions to “not accept any new members who would only be eligible for membership in the relevant credit union based on the vacated portions of the final rule.” The notice also makes mention of potential appeal, which a footnote describes the agency as “currently considering.” This is another issue being watched closely on the national perspective; stay tuned.
• And last but not least, credit unions across the country continue to ask the U.S. House to vote for  S. 2155 that passed the U.S. Senate earlier. In Georgia, credit unions joined with bankers to urge Congress to move this bill forward by issuing a joint letter from GCUA, the Georgia Bankers Association, and the Community Bankers Association. In addition, the recent Atlanta Business Chronicle article cited all three state financial industry trades on why this bill is needed, and is part of a strategic effort to help move this bill forward. You can join in this effort; reach out to encourage members of the U.S. House to vote YES on S. 2155 here today!