Regulatory Advocacy Update

Credit Unions Should Look Twice at Small Business Health Care Tax Credit
The Internal Revenue Service (IRS), partnering with the Department of Health and Human Services, is calling attention to the Small Business Health Care Tax Credit and encouraging small businesses to review eligibility. In a recent news release, the IRS stated that “the credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.”

Even an eligible organization that has already filed with the IRS can still claim the credit.

Both agencies have been doing extensive outreach, working to spread the message through emails, social media, and YouTube videos in English, Spanish, and American Sign Language to help ensure those eligible are seeking the exemption.

To learn more about the exemption and determine eligibility, read the IRS announcement.

Credit Union Conversions and the Temporary Corporate Credit Union Stabilization Fund (TCCUSF)
Questions around the potential impact of credit union conversions to banks or private insurance on the stabilization repayment program assessments have been lingering ever since the program’s inception. In a recent letter, the National Credit Union Administration (NCUA) stated that while it does not have a contingency plan for the impact such conversions might have, it is watching the situation closely.

Those credit unions converting this year will be paying the 2011 assessment, with some paying next year’s assessment as well. Going forward, the monthly TCCUSF management report will clearly outline the percentage of total insured shares each converting credit union represents. The NCUA cited that while insured shares from conversions have decreased by nearly $700 million since May 2009, total insured shares increased by $69 billion during that same period.

The Northwest Credit Union Association (NWCUA) will continue to monitor changes to the TCCUSF.

CFPB Enters Fourth Round in Developing New Loan Disclosure Forms
In its effort to ease mortgage paperwork, the Consumer Financial Protection Bureau (CFPB) continues to revise the new combined form merging the formerly-separate Truth in Lending and Real Estate Settlement Procedures Act documents.

As it enters the fourth round of its “Know Before You Owe” effort, the CFPB has changed the question slightly. Rather than asking which form you prefer, the question now asks which form is easier to use when comparing loan products. It also asks for input as to what information is and is not helpful, as well as asking what additional information would be useful.

This is a great opportunity for credit unions to weigh in as this process develops. To review the forms and provide your feedback, visit the CFPB site.


The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Director of Regulatory Advocacy Jaycee Winn at or 800.995.9064 x209.

Posted in Advocacy News.