CUNA Advocacy Update
June 28, 2016
June 27, 2016
Second Quarter Accomplishments Position Credit Unions Well for Elections, New Congress:
Over the last few months, a number of really positive things have happened as a result of years of advocacy work from CUNA, the leagues and credit unions. NCUA published its overhead transfer rate methodology for the first time, and has taken significant steps to modernize the supervisory process. 329 Members of the House sent the CFPB director a letter urging the agency to use its Section 1022 Dodd-Frank exemption authority, which it recently used for the first time. CUNA secured legal victories on interchange and data breach lawsuits, which will help pave the way for more advocacy opportunities in court. These accomplishments set credit unions up nicely as we head into the general election and prepare to advocate before a new Congress and a new administration. [More]
CUNA Releases Summary of Payday Lending Proposal:
Earlier this month, the CFPB proposed a new rule for payday, title and other lending. It’s a very complicated proposal that will have widespread impact on the credit union system, and we decided early on that we would prefer our analysis to be thorough and analytical, rather than first. So today we are releasing our summary of the proposal, which is part of our effort to fully understand how it will impact credit unions. The next part is getting feedback from you, the folks who are offering this type of lending to members. We encourage you to read our summary of the rule and consider how it will impact your ability to serve your members, and let us know by emailing Leah Dempsey, Elizabeth Eurgubian or me. Your reaction will help inform our advocacy – and you may even help us find something we might have missed! Our comment call and summary of this lengthy proposal is available here.
On the Hill:
The House is in recess until July 5, 2016. The Senate is expected to consider H.R. 2577, the Military Construction-Veterans/Zika Appropriations Conference Report. In addition, the Senate may consider H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act.
With the House out of town, there is only one hearing that we are following:
- The Senate Judiciary Committee will hold a full committee hearing on “Protecting Older Americans from Financial Exploitation.”
Pending Regulatory Comment Calls:
CUNA intends to comment on the following pending regulatory proposals. For our comment letter to have the greatest impact, we need to hear from you. Please consider whether and how these proposals would affect your credit union, and contact the CUNA staff listed with each proposal with your feedback
We encourage Leagues and credit unions to use PowerComment to file comment letters with regulators. For more information regarding these proposals, please follow the links below:
NCUA Responds to CUNA Request, Extends Call Report RFI Deadline:
After conversations between CUNA and NCUA, the agency has extended the deadline to submit comments on its Call Report/Profile modernization efforts to August 15, 2016. We noted that the original deadline fell shortly after NCUA’s call report deadline, and that the very credit union professionals who are needed to provide input on this process would otherwise be very busy during this time, and unable to focus on providing meaningful input. We are grateful to NCUA for providing this accommodation, which should greatly improve the quality of responses to the RFI.
CUNA Supports NCUA Fixed Asset Rule:
Last week, CUNA filed a comment letter supporting NCUA’s latest fixed assets proposed rule. The proposed rule would update NCUA’s federal credit union occupancy, planning and disposal of acquired and abandoned premises and incidental powers regulations to add flexibility in the ownership and use of buildings and land for federal credit unions. [More]
CUNA Encourages NCUA to Implement CECL Sensitively:
On Friday, CUNA sent NCUA Chairman Rick Metsger a letter, encouraging the agency to prioritize assisting credit unions with the implementation of the new current expected credit loss (CECL) accounting standard. The recently finalized accounting standard will impact all credit unions, so it is important for the regulator to understand that the complex nature of the standard may be a challenge for some credit unions. We hope NCUA will publicize its plan to assist credit unions, including a timeline for publication of compliance resources. We also hope that it will form an implementation task force to assist with identifying compliance challenges. [More]
House GOP Release Tax Reform Blueprint:
Speaker of the House Paul Ryan (R-Wis.) and House Ways and Means Chair Kevin Brady (R-Texas) unveiled their sixth and final agenda paper, part of Ryan’s A Better Way issues agenda. The report is meant to be a platform outlining solutions to a number of current issues facing the country. The paper covers tax reform from an individual and business perspective. The Ways and Means Committee expects to work on the blueprint for reform this year, with a goal of having it ready for legislative action next year.
Thankfully, we have had the opportunity to discuss the credit union tax status with the Speaker, the Chairman and other Members of Congress. We believe they understand the significance of and support the credit union tax status, so we look forward to reviewing the blueprint and any forthcoming legislative language to ensure that it is preserved. [More]
Over on the Removing Barriers Blog…
Senate Appropriations approves marijuana banking amendment… Durbin Amendment repeal a top priority for Electronic Payments Coalition… House hearing focuses on unintended consequences of DOL Overtime Rule… CUNA advocacy efforts result in MLA guidance… Transportation Network Company legislation on the move in Missouri and Rhode Island.