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ARLINGTON, Va. – Noting its support of the amendments to the Federal Credit Union Act that were included in the House version of proposed regulatory relief legislation, H.R. 1375, NASCUS provided Senate Banking, Housing, and Urban Affairs Committee Chairman Richard Shelby (R-Ala.) with its list of regulatory relief priorities the association would like the Senate Committee to include in its regulatory relief package. Responding to a request from Shelby for the information, NASCUS President/CEO Doug Duerr discussed two priority issues for the association in a letter to the senator. Both are included in H.R. 1375 that has already been reported favorably by the House Financial Services Committee. They include permitting non-federally insured credit unions to be eligible to join the Federal Home Loan Banks; and providing credit unions similar regulatory relief treatment as saving associations with regard to SEC broker/dealer registration and investment advisor requirements. In addition, Duerr called attention to two other legislative priorities for NASCUS that were not included in H.R. 1375 but which NASCUS wants the Senate Committee to include in its package – amend the PCA provision of the FCU Act to require federally insured credit unions to include all capital when calculating the required net worth ratio, and not just their retained earnings, as “net worth” is currently defined to include; and expand credit unions’ business lending authority from 12.25% to 20% of credit unions’ assets. NASCUS further urged that the statutory definition of a credit union member business loan be changed from the current $50,000 maximum in the FCU Act. The association suggested the Committee consider redefining member business loans as those that exceed the Fannie Mae or Freddie Mac conforming loan limit, which is currently $322,000. Duerr also reminded Shelby that the GAO is in the process of conducting a study of the performance of the credit union industry and the NCUA. Once that study is completed and submitted to Congress later this year, “NASCUS may wish to propose to the Committee some reforms in the organization and structure of NCUA that would provide for a clear internal separation of the agency’s share insurance functions for both federal and state chartered credit unions and its federal credit union regulatory responsibilities,” Duerr wrote. Lastly, Duerr recommended Congress direct the Federal Trade Commission to work with state credit union supervisors to develop an examination platform that each state could implement to assure that state chartered credit unions are in compliance with FTC disclosure requirements. -

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