Thursday, April 9, 2015

Storming the Capitol


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.

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