The Nussle Report
July 14, 2015
July 10, 2015
Effective CUNA/League Advocacy Protects CU Tax Status in Senate Finance Report:
In a victory for credit union advocacy and the consumers we represent, the report of a U.S. Senate Finance Committee working group, chaired by Sens. John Thune (R-S.D) and Ben Cardin (D-Md.), makes no mention of altering the not-for-profit tax status of credit unions. The Senators have been examining the business income tax code for possible reform. I met with Thune recently and wrote to working group members. Partnering with the state leagues, we successfully made our case and refuted endless attacks from the banks. More detail is in News Now coverage.
CUs Needed for Phase II of CUNA’s Work to Quantify Cost of Regulatory Burden:
Following up on my earlier letter to credit unions, CUNA’s major study of the cost of reg. burden in credit unions is entering its second phase. The goal is to develop a rigorous estimate of the total costs of regulatory burden. This first-ever complete catalogue of regulatory costs will be a vital tool in rolling back regulatory burden. For Phase 2, we will gather information from volunteer credit unions about increased expenses, lost revenue and lost productivity across all areas of the institution. If you are interested in participating, please email RegRelief@cuna.coop. You can learn more about the study in this News Now story.
Credit Unions Step Up to Help State Workers:
The Illinois budget impasse is becoming a real financial crisis for state workers now facing the prospect of not being paid July 15 if state officials don’t reach a budget agreement soon. Participating credit unions have partnered with state Treasurer Michael Frerichs to provide interest-free short-term loans to state workers beginning July 15 if the impasse remains. Congratulations to the Illinois Credit Union League, Credit Union 1, University of Illinois Employees Credit Union, and 1 st MidAmerica Credit Union for their leadership. An estimated 60,000 state workers could qualify for the short-term loan program.
CUNA Engaged on All Fronts on Overdraft Protection as CFPB Database Reveals Intriguing Facts:
A trade press story caught my attention regarding the Consumer Financial Protection Bureau’s (CFPB) complaint database. A Moebs Financial analysis examined three years of consumer complaints – more than 400,000 in all – filed with the bureau. Moebs reported that less than one in five complaints about checking accounts, and incredibly less than one in 62 of complaints about any financial product were about overdrafts. The interest of CFPB on this issue is baffling in light of these facts but we are completely engaged on multiple fronts, vigilant against any rule that might complicate or reduce the convenience of credit unions’ ability to offer members programs like these. You can be sure we’ll be reminding CFPB officials about these facts and others as we advocate for the interests of credit unions and your members.
CUNA Opposition to NCUA Third-Party Vendor Authority Increases Following GAO Recommendation:
We’ve stepped up our advocacy to oppose any third-party vendor examination authority at the National Credit Union Administration (NCUA) following a U.S. Government Accountability Office (GAO) report making just such a recommendation. We’ve long-opposed third-party vendor authority as a needless regulatory overreach and in fact this is not the first time GAO has raised the issue. Congress would have to pass legislation authorizing this move so we remain in close touch with our friends on Capitol Hill to ensure opposition to this unnecessary agency authority remains solid.
New CUNA-Backed Bill Helps Keeps the Plight of Small Financial Institutions Top-of-Mind:
I sent a letter this week to Reps. Scott Tipton (R-Colo.) and Andy Barr (R-Ky.) thanking them for their leadership in sponsoring the Taking Account of Institutions with Low Operation Risk (TAILOR) Act of 2015 (H.R. 2986). The bill would require federal regulatory agencies to shape regulations to fit the risk profile and business model of institutions. Credit unions are precisely the type of institutions for which this legislation is designed to help, and consumers win when we’re able to meet their savings and credit needs.
Congressional Pressure Builds for TRID Safe-Harbor:
CUNA, along with our coalition partners, welcomed Sen. Tim Scott’s (R-S.C.) legislation (S. 1711) to mandate a safe-harbor period for implementation of the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule. Scott’s bill is a companion bill to House legislation (H.R. 2213). We’ve been working hard to secure introduction of safe-harbor legislation in both houses of Congress.
Wegner Award Nominations:
I came away from my first Wegner Award ceremony inspired by the achievements of those we honored that night back in March during GAC. The July 31 deadline for the 2016 awards is fast approaching and I encourage you to use this link if you are interested in making a nomination.
- News Now reports on the Senate tax reform working group
- CUNA recruits credit unions for phase II of reg. study
- Wegner Award Nomination information
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