ARLINGTON, Va.-NAFCU recently wrote Senate Banking CommitteeChairman Richard Shelby (R-Ala.) to request that regulatory relieflegislation be introduced quickly in the Senate-NAFCU also madesome suggestions for the substance of the proposed bill. “Werealize that as Congress returns from the August recess there willbe a number of important issues competing for you and yourcolleagues' attention; we hope that under your leadership theBanking Committee will give high priority to crafting a bill toprovide needed regulatory relief to federal credit unions,” NAFCU'sletter read. The trade group recommended the Financial ServicesRegulatory Relief Act (H.R. 1375) as a solid start. NAFCU addedthat it would like to see the removal of credit unions' statutorymember business lending restrictions, or at least parity providedwith thrifts in the bill at 20% rather than 12.25% of assets. Thegroup also asked that the “reasonable proximity” requirement withregard to having a physical presence within reasonable proximity ofthe location of the group to be served be relaxed. NAFCU's letterexplained, “This can particularly hurt the growth opportunities forsmaller credit unions who may be willing to serve a certainpopulation, and have the means to do it through today's `clicks andwindows' technology, but do not have the resources to establish a`bricks and mortar' presence.” Additionally, NAFCU requested thatthe legislation remove the term “local” from in front of communityfor community charters. Again, NAFCU said technology makes thislanguage obsolete. “Today's dynamic financial marketplacecharacterized by `cyber-banking' technology rather than bricks andmortar makes the word `local' an extraneous limitation forcommunity-chartered credit unions,” the group wrote. NAFCU's letterblamed the “local” term for the majority of the federal to statecredit union conversions. Finally, NAFCU endorsed NCUA ChairmanDennis Dollar's suggestion that Congress revisit Prompt CorrectiveAction laws for credit unions, which he as chief federal regulatorof credit unions has concluded “fail to accurately and fullyreflect individual risk factors in credit unions.” NAFCU concurswith his assessment, and with his belief that significant benefitscould be derived by `amending the FCU Act to adopt a comprehensiverisk-based approach.' ” A copy of the letter was also sent toSenate Banking Committee Ranking Member Paul Sarbanes (D-Md.)[email protected]