April 7, 2015
Storming the Capitol
You
can make a difference and help to protect credit union members from unnecessary
regulation
National credit union organizations are
extremely busy these days, waging battle on your behalf.
Maybe the biggest fight is the battle
against overzealous regulatory burdens that squeeze credit unions' ability to
offer the best possible products and services to over 100 million consumers and
small businesses.
Check out some of the hotly contested
issues the National Association of Federal Credit Unions (NAFCU) is taking up
before Congress. Feel free to click on the links for more information on any of
the topics.
Protect the Credit Union Tax Exemption
Comprehensive tax reform remains on the
Congressional agenda. Various proposals could impact the credit union federal tax exemption or
Unrelated Business Income Tax (UBIT). Both the Senate Finance Committee and
House Ways and Means Committee are holding hearings on business taxes and tax
expenditures. The data in NAFCU's study
shows how vital the tax exemption is to credit unions, to their members and to the
economy.
Data Security
NAFCU and other credit union trade
organizations have bent lawmakers’ ears on data security in
the wake of the Target data security breach. They continue to insist that
retailers do their part to prevent breaches, and own up to their liability when
a breach originates from the merchants. When they are at fault, retailers must
cover fraud costs and the expense to reissue credit and debit cards.
Regulatory Relief
NAFCU reintroduced the Five-Point Plan for Regulatory Relief to
encourage Congress to focus on enacting real relief for overburdened credit
unions. The cumulative regulatory burden our industry faces from various
factions is staggering. Now more than ever, credit unions need lawmakers to
step in and address duplicative and over burdensome regulations. Your credit
union's individual story paints an invaluable picture for lawmakers about how
these rules impact the ability of credit unions to serve over 100 million
Americans who rely on you.
Risk-Based Capital Reform
According to NAFCU, the National Credit
Union Administration’s (NCUA) second proposed risk-based capital rule
(RBC2) is too costly and unnecessary, given that credit unions are well
capitalized and weathered the worst financial crisis of our time much more
effectively than many bank counterparts. NAFCU is lobbying Congress that this
proposal will only impose more regulatory burden on an already extremely
well-capitalized industry.
Housing Finance Reform
Debate continues in Congress about the
future of housing finance reform.
The secondary mortgage market is critical for credit unions in managing
interest rate risk and facilitating the flow of mortgage credit to their
members. Credit unions are an important part of the mortgage market and should
not, under any circumstances, be shut out by larger players. Given the complex
nature of the housing finance market, lawmakers need your immense expertise and
insight as a lender.
Learn more about housing finance
reform.
