Lawmakers should keep credit unions' tax exemption, ensure that the regulatory overhaul doesn't overburden credit unions and ensure access to a secondary mortgage market.
Those are among NAFCU's priorities for the new Congress that begins tomorrow, according to a letter sent yesterday to House leaders, with copies to all members.
NAFCU President/CEO Fred Becker urged lawmakers to pass legislation that would address some of the "overlapping and confusing regulations'' to ease the compliance burden and "prevent unnecessary expenditures and uncertainty'' for credit unions.
He also urged lawmakers to oppose removing the credit union tax exemption because doing so would have a "disastrous impact'' on many Americans, including the working poor and those who have trouble obtaining credit elsewhere.
Becker also urged Congress to provide "strong oversight'' to the Federal Reserve's proposed rule to implement the cap on interchange fees. He also requested that since credit unions are losing fee income they should have to spend less to repair security breaches from certain card uses. Merchants should be required to pay for breaches caused by their own neglect, he said.
Becker also wrote that if lawmakers decide to transition away from Fannie Mae and Freddie Mac they should ensure that credit unions have "uninterrupted access'' to a secondary market .
He also reiterated the group's support for raising the cap on member business loans and giving credit unions the right to raise secondary capital.
