Credit union trade associations shrugged off a 2014 budgetamendment passed by the Senate March 22 that would “establish adeficit-neutral reserve fund to address the disproportionateregulatory burdens on community banks,” according to a release fromsponsor Sen. John Boozman (R-Ark.).

Credit unions were not mentioned anywhere in the amendment'slanguage. 

CUNA Vice President of Legislative Affairs Sam Whitfield saidthe amendment only represents the sense of the Senate and addedthat “those amendments never go anywhere.” 

Brad Thaler, NAFCU's vice president of legislative affairs,called the amendment vote symbolic and said it could be viewed as apositive development that shows the Senate has an appetite forregulatory reform. While NAFCU would like to have seen creditunions included in the amendment, Thaler said the affirmative votehelps lay the groundwork for advancing an overall regulatory reform agenda that would include credit unions.

“Based on our conversations with members of the Senate, if theytackle regulatory relief, it would include both credit unions andcommunity banks,” Thaler said.

Independent Community Bankers Association spokeswoman JessicaEtter said her trade association didn't lobby for the amendment anddeclined further comment.

Rather than attempt to get in on the amendment action, Whitfieldsaid CUNA is instead focusing on upcoming hearings by the House Financial Services Committeethat will investigate regulatory burdens on community financialinstitutions.

“Those will be real hearings that will have the potential tohave the effect of law, as opposed to the sense of the Congress,”he said, “and we hope to be there front and center.”

A Financial Services Committee spokesman told Credit Union Timesthe committee plans to focus a future regulatory burden hearing oncredit unions. However, Whitfield said the committee has notcontacted CUNA asking for witnesses or testimony from credit unionsfor upcoming hearings on the topic scheduled for April 10 and April16. Thaler said NAFCU hasn't heard from the committee either, andsaid staffers could be ironing out the details while Congress is ona two-week break for Easter.

Boozman's amendment was had bipartisan sponsorship support fromArkansas' other senator, Democrat Mark Pryor, as well as RepublicanJerry Moran of Kansas and Democrat Joe Manchin of WestVirginia. 

CULAC contributed $2,000 to Boozman in 2012, according towebsite opensecrets.org. The same site reported that NAFCU's PACdid not contribute to Boozman during the 2012 cycle. During the2010 election cycle, when Boozman was first elected, NAFCU donated$1,000 to his campaign, and CULAC donated $1,500. However, bothtrade associations also supported Boozman's opponent during theprimaries, with Lincoln receiving $3,500 from CUNA's PAC and$1,000 from NAFCU. 

The amendment would also fund, in the federal budget, policiesthat would ease regulatory burden on community banks.

Another amendment attached to the Senate's 2014 budget would putan end to funneling Fannie Mae and Freddie Mac guarantee feestoward deficit reduction. Amendment #593, sponsored by SenateBanking Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho),received a thumbs-up letter of support signed by CUNA and NAFCU, aswell as banking and real estate trade associations.

“G-fees are a critical risk management tool used by Fannie Maeand Freddie Mac to protect against losses from faulty loans, andshould be used only to manage the companies' credit risk.Increasing g-fees for other purposes effectively taxes potentialhomebuyers and consumers wishing to refinance their mortgages.” thegroups said in the March 22 letter.

The Senate resolution passed by a narrow 50-49 vote.