ARLINGTON, Va. -- The Credit Union Regulatory Improvements Act(H.R. 1537) has continued to gain legislative co-sponsors at warpspeed in its first few months in the 110th Congress, which NAFCUsays is a credit to credit union officials pounding thepavement.

"CURIA this year has continued to generate support. We'repleased to see the progress," NAFCU Director of Legislative AffairsBrad Thaler commented. He said he would like to see the legislationsurpass the 125 co-sponsor mark that it achieved in the two yearsof the last Congress before the month-long August recess.

When asked why co-sponsorship is so important, Thaler explained,"It demonstrates the support for the legislation and support formoving the bill forward." He said he is expecting a full committeehearing this year either for CURIA on its own or as a part of alarger, more comprehensive regulatory relief package. HouseFinancial Services Committee Chairman Barney Frank (D-Mass.) andHouse Financial Institutions and Consumer Credit SubcommitteeChairwoman Carolyn Maloney (D-N.Y.), who is also a primaryco-sponsor of CURIA, have alluded to studying a financial servicesregulatory relief package next year even though one was signed intolaw last year under the Republican Congress.

No date has been set for a hearing but, "We're probably lookinginto September to do one...It is something that is on their radarscreen and that's what co-sponsors help," he said.

NAFCU's strategy for pushing the bill is not to work piecemealat this time. According to Thaler, "Right now I think we've gotmomentum behind it as a package."

The seasoned credit union lobbyist noted that Frank and otherson the committee are pragmatists and realize that a bi-partisaneffort will be necessary to get anything done despite Democraticcontrol of Congress. "They like to try and get broad bipartisansupport," Thaler said, so it helps to build bipartisan co-sponsorsfor legislation. CURIA right now has 77 Democrats including thebill's sponsor Congressman Paul Kanjorski (Pa.) and 37 Republicans.CURIA had lost a good number of its Republican sponsors in theDemocratic take over of Congress, but has recovered very well with20 new co-sponsors for this year.

Thaler said he thinks the new provisions added this Congresshave been helpful in gaining additional supporters, especially theunderserved areas provisions. He said NAFCU has been getting "a lotof feedback from the Hill that lawmakers want credit unions tohave" that authority. NCUA was forced to pass a regulation lastyear limiting the adoption of underserved areas strictly tomultiple common bond credit unions after the American BankersAssociation successfully sued based on a strict interpretation ofthe law; NCUA contended that the legislative history demonstratedCongress' true intent for all federal credit union charter types tobe able to serve underserved areas.

If anything, the ABA lawsuit has hurt the bankers' argumentsagainst CURIA on Capitol Hill. "The hypocrisy of the banks has beendemonstrated many times," Thaler said, adding especially when thebanks are working to keep credit unions out of the very areas banksare abandoning.

A couple dozen CURIA co-sponsors have yet to re-up. "I think anumber of them are ultimately going to sign back on...a lot ofoffices are hearing from constituents on any number of issues," heexplained. They are busy and, if a member of Congress does notserve on the Financial Services Committee, the issue may notnecessarily be front and center for them. However, if they hearfrom their credit union constituents on CURIA, they will payattention, which is exactly why credit unions need to continue toraise the issue with their lawmakers in Washington, D.C. as well asback in the district.

NAFCU launched a major postcard campaign this year for membercredit unions to send in bright green post cards in support ofCURIA to their representative's offices. The group also encouragedmembers to meet with the legislators in their districts over theJuly 4th recess and other times. NAFCU's Web site, www.nafcu.org,also has links to write the various members of Congress.Additionally, NAFCU will be holding its Congressional Caucus inSeptember at which hundreds of credit union officials typicallyswarm the Hill.

Though NAFCU's Annual Conference is not politically focused,Thaler said the issue could come up. He is participating in twosessions there. "We will be discussing CURA at the AnnualConference but I don't want to give too much away," he said.

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CUNA Considering All Options Including Possibility of BreakingCURIA into Bite-Sized Pieces

WASHINGTON -- Though NAFCU's lead lobbyist on CURIA has said hefeels CURIA has momentum as a complete package, CUNA lobbyists havesaid they are willing to explore it in bits and pieces.
CUNA Vice President of Legislative Affairs Dean Sagar said CUNA islooking for any opportunity to take advantage. "I think we're goingto see more smaller bills coming out of Financial Services. I'vegotten the sense from talking with staff that as they get into Julyand certainly into the early fall that there's a lot of pressure tokeep [Speaker of the House Nancy] Pelosi's (D-Calif.) four andfive-day agenda going and she's looking for bills--smaller bills,consensus bills," he said. Under the Republican leadership in thelast couple of Congress' they had cut the D.C. workweek back totypically three days.
Sagar sees the potential for some opportunities then. "I know alsothey're interested in dealing with underserved areas so that maygive us an avenue on the underserved areas," he said.
One area where the two groups do agree is that the bankers arelosing credibility in their arguments against CURIA. According toCUNA's lobbyists, the banks have been using the samearguments--almost verbatim--against the credit unions as they haveagainst Wal-Mart, the realtors, and the Farm Credit System.
"It seems to be the word is the bankers are against everything andthey're fighting everybody," CUNA Senior Vice President ofPolitical Affairs Richard Gose said. "The more they do that themore they show their hand and we're, certainly from a grassrootsside, pointing that out."
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