MBLs, Tax Exemption Top NAFCU’s 2015 Priorities
This year, NAFCU said its top legislative priorities include raising the member business lending cap, supporting fair capital reform, advocating for national data security standards and protecting the credit union tax exemption.
“Throughout 2015, we will continue to advance our message to lawmakers and regulators that ‘enough is enough,’ particularly with respect to the over-regulation of credit unions and retailers’ lack of accountability for data security breaches on their end,” a special NAFCU update released Monday said.
“We will continue to press for regulatory relief so credit unions – which continue to see new highs in membership growth – have the resources and flexibility they need to satisfy the financial services needs of their members,” NAFCU said.
The trade association cited the credit union tax exemption as its highest priority in 2015.
“NAFCU remains vigilant on this issue as a new Congress begins with new chairmen for both the House Ways and Means Committee and Senate Finance Committee,” NAFCU's update said. “No member of Congress has proposed legislation that would eliminate the credit union tax exemption and H.R. 1, the 2014 tax reform package introduced by Ways and Means Chairman Dave Camp, R- Mich., would preserve the exemption.”
NAFCU said it would continue working with Congress and the Obama administration in 2015 on housing finance reform and other related issues, including the FHFA’s proposal to modify criteria for membership in Federal Home Loan Banks.
“NAFCU achieved many successes in 2014 on Capitol Hill, with the administration and the federal regulatory agencies,” NAFCU President/CEO Dan Berger said in a press release. “We advanced a key aspect of NAFCU’s five-point plan for regulatory relief for credit unions when President Obama signed into law the ‘Credit Union Share Insurance Fund Parity Act,’ giving credit unions parity with FDIC-insured institutions offering escrow accounts like Interest on Lawyer Trust Accounts (IOLTAs).”
In the midterm elections, Berger said 93% of the candidates NAFCU/PAC supported won their seats.
"And NCUA, as long urged by NAFCU, appears ready soon to issue a revised proposal on risk-based capital, which will give more time for credit unions to review this issue and provide their comments on the changes that will be offered," he said.
The trade group also said it will push for a legislative solution for updated risk-based capital standards, rather than a rule from the NCUA.
Despite the NCUA Board indicating that the second risk-based capital proposal will include many changes, NAFCU said the NCUA lacks the legal authority to implement many areas of the initial proposal.
“NAFCU supports a legislative solution that would update the credit union regulatory capital requirements without requiring some credit unions to shoulder a disproportionate amount of the burden, as the current proposal would do. The association will continue to advocate reform that reflects risk appropriately,” NAFCU said.
The association pledged to advocate for patent reform in the new Congress as well.
A CUNA spokesperson told CU Times the trade group plans to release its legislative priorities for the new Congress Tuesday.