If Social Security Numbers Banned, CUNA Asks forExemption for Financials

WASHINGTON — If the Federal Trade Commission decides to issuerules banning the use of Social Security numbers to identifyconsumers in order to protect the valuable digits, CUNA would liketo see a carve out for financial institutions.

Government requirements, including PATRIOT Act and Bank SecrecyAct compliance, require the use of SSNs to identify consumers andweed out money laundering and terrorist financing. SSNs are alsoused on credit checks for loans, CUNA explained. Additionally, theGramm-Leach-Bliley Act put personal information safeguards inplace.

“For these reasons, we do not support a prohibition on the useof SSNs to identify consumers,” CUNA Senior Assistant GeneralCounsel Jeffrey Bloch wrote. “If, however, the FTC, based on itsthorough analysis of empirical evidence, concludes that additionalregulatory action is needed to safeguard the use of SSNs, we urgethat the FTC and other government agencies provide an exemption forfinancial institutions as the rules under the GLB Act alreadyaddress protection of SSNs in financial transactions.”

While recognizing the flourishing use of SSNs in identity theft,CUNA said prohibiting their use “is simply not feasible at thistime.” Bloch added, “SSNs serve a vital function with regard toidentification due to their status as the only unique andnationwide individual identifier. There appears to be fewalternatives at this time.” One is only using part of the SSN, buteven that should be carefully considered.

Banning use of SSNs would only create the need for anotheridentifier–requiring more training–that would fall prey to the sameproblems as SSNs, he pointed out. Bloch said CUNA is willing toexplore other alternatives with the FTC, like for example creatingan identity verification program.

NAFCU: Treasury Reinforces Favorable View of CreditUnions

WASHINGTON — NAFCU senior staff caught up with TreasuryAssistant Secretary for Tax Policy Eric Solomon on Sept. 6 whoreiterated that the department is not looking to repeal the creditunion tax-exemption.

Solomon and other senior staff at Treasury discussed creditunions and their issues with NAFCU President/CEO Fred Becker,Senior Vice President of Government Affairs Dan Berger andAssociate Director of Regulatory Affairs Tessema Tefferi. Oneparticular topic of conversation was the tax-exempt status ofcredit unions.

During the meeting, NAFCU said that Treasury provided furtherassurance of the administration's positive view of credit unions.“It was a positive discussion,” Becker said. “We appreciated theopportunity to meet with Mr. Solomon and look forward to acontinued, productive relationship with this key policy office onbehalf of our member credit unions.”

Solomon reinforced the statement sent to NAFCU last month by hisdeputy, Robert Carroll, clarifying that Treasury's broad review ofbusiness taxation and the global economy does not advocate theremoval of credit unions' tax-exempt status.

NAFCU Encouraged by SBA's 2008 Draft Of 2008-2012Strategic Plan

ARLINGTON, Va. — Looking forward to a continued relationship,NAFCU recently applauded the Small Business Administration for itswork with credit unions and its Draft Fiscal Year 2008-2012Strategic Plan.

The plan describes SBA's mission, strategic goals, objectives,and means and strategies to achieve a number of goals includingoutlining the direction that SBA will take as it moves ahead toexpand opportunities for America's small businesses and to assistvictims of federally-declared disasters.

“The credit union community is firmly committed to helping smallbusiness owners and entrepreneurs achieve greater access tofinancing and to increase ownership in economically distressed andunderserved communities,” wrote Pamela Yu, NAFCU associate directorof regulatory affairs in a Sept. 10 comment letter.

Within its 2008-2012 plan, SBA's four strategic goals are toexpand service in underserved markets, provide timely financialassistance to homeowners, renters, nonprofit organizations andbusinesses affected by disaster, improve the economic environmentfor small business and ensure management and organizationalexcellence to increase responsiveness to customers, streamlineprocesses, and improve compliance and controls.

Yu reminded that NAFCU is also supporting H.R. 1849, the CreditUnion Small Business Lending Act, introduced in the 110th Congressby Chairwoman Nydia Velazquez (D-NY) of the House Committee onSmall Business to improve the ability of credit unions toparticipate in SBA programs by enacting some key provisions thatare pivotal steps toward facilitating more SBA loans by creditunions and encouraging increased business lending practices.

To access the draft strategic plan, go tohttp://www.sba.gov/aboutsba/budgetsplans/serv_budget_strategicplan.html.The comment period deadline was Sept. 10.

Hood Travels to Maine for Open Discussions

ALEXANDRIA, Va. — NCUA Vice Chairman Rodney Hood applauded thecollaborative manner in which credit unions work to face commonproblems during a Senior Managers Forum hosted by the Maine CreditUnion League.

The forum offered credit union leaders the opportunity for frankdiscussion regarding current issues facing credit unions. “Creditunions are making a positive impact on the financial industry, butconstant advancement does not happen without strong leadership,vision and commitment,” Hood said, acknowledging Maine leaguepresident John Murphy and the league for organizing the session. Healso pointed out that Maine credit unions exceeded the nationalaverage in most categories.

Credit unions need this leadership and collaboration to continueto evolve and grow. “I applaud the collaborative environment thatthis forum has created,” stated Hood.

He also applauded the daily impact that credit unions makenationwide through financial education programs, innovativeoutreach efforts to underserved areas, and small businessdevelopment.

In closing, Hood said, “I know that we can work together tocontinue helping families achieve the American dream ofhomeownership–that we can assist entrepreneurs in creating small,viable businesses, and we can provide the trusted resources forfamilies to save for their future.”

NAFCU's Pat Morris Featured in CEO Update

ARLINGTON, Va. — NAFCU Executive Vice President/Chief OperatingOfficer Pat Morris was destined to lead, a recent feature in thebi-weekly newsletter CEO Update stated.

The article, which ran in the Aug. 31 issue, says Morris claimsleadership skills from all his past work experiences, whether inthe Marine Corps, on the Hill in Washington, and at state andnational trade associations. In NAFCU's No. 2 spot, Morris managesthe directors of each of the departments from accounting tomarketing to education, and works closely with NAFCU ServicesCorp.

“Management isn't something that you do after you worked for 10to 15 years,” Morris is quoted as saying. “You have to embrace itand you have to be comfortable that you have the talent to doit.”

Morris joined the Marines right out of college and completedgraduate school, entering the Presidential Management InternProgram. He then worked as a legislative assistant for Senator JohnWarner (R-Va.), and a regional director for the USDA's Federal CropInsurance Corporation. At 35, he became CEO of the KansasAssociation of Insurance Agents, then secretary general of theProduce Marketing Association. Just prior to joining NAFCU sevenmonths ago, Morris served at the Information Technology IndustryCouncil, leading an international team in developing computerstandards.