Credit union consultant, blogger and Capitol Hill veteran MarvinUmholtz said the nation's growing political divide is apparentamong credit union leaders and fuels comments he receives from hisreaders and colleagues. Umholtz, who said he isn't affiliated witheither major party, blames Democrats and the Consumer FinancialProtection Bureau for turning credit union leaders againstprogressive candidates. Umholtz said the Massachusetts Credit UnionLeague's July 26 endorsement of Democrat Elizabeth Warren for U.S. Senate wasparticularly distasteful to credit unions, given her history withthe CFPB.

“In my mind, Elizabeth Warren fits the category of a candidatewho did damage to credit unions even worse than Durbin,” Umholtzsaid. The Olympia, Wash.-based consultant admitted hisdislike of the CFPB and the Dodd-Frank Act may be extreme, but thebureau's new rules that were mandated by Dodd-Frank have done somuch damage to the credit union business model, Umholtz said, thatnobody who supported or voted for the bill should receive anycredit union support this election season.

“That no support group includes many more Democrats thanRepublicans because of the highly partisan vote in 2010,” Umholtzsaid.

David Proffitt, president/CEO of the $180 million Alcoa TennFederal Credit Union, agreed with Umholtz, saying he was stunnedthe league endorsed Warren and questioned the logic of thepick.

“To endorse the creator of the massive regulatory bureau iscontradictory to the credit union mission of creating andsustaining a financial cooperative with our members' money,”Proffitt said.

Massachusetts League Senior Vice President of PublicRelations  RobertKimmett said the organization has received some criticism frommembers for the endorsement but said, by and large, it was apositive move. League endorsements are nonpartisan, he said.

“The only interest we take when approaching governmental andpolitical matters is whether or not the individual running foroffice is pro-credit union,” he said.

The league hasn't heard an earful from members who say the CFPBis out to make life hard for credit unions. Warren is a member ofHarvard Credit Union and her pro-credit union stance goes a longway, he added.

Virginia Credit Union League President/CEO Rick Pillow said bothmajor political parties bring a different type of support to creditunions, but at the end of the day, it's a candidate's individualrecord that earns him or her an endorsement or PACcontribution.

“Sometimes you're better off on the regulatory side withRepublicans because they tend to want less government,” Pillowsaid. “But on the other hand, Democrats tend to be better withproactive issues. For example, there are more Democratic sponsorsfor member business lending.”

The Virginia league endorsed Democrat and former governor Tim Kaine in his bid forthe U.S. Senate after endorsing his opponent in 2006, RepublicanGeorge Allen, who also served as the state's governor and completedone term as a senator. Pillow said the league organized a taskforce to select a candidate in the 2012 race, and the group metwith both men, asking questions about current credit union issues.Though both candidates are friendly to credit unions, Pillow saidKaine “hit the ball out of the park” with his responses.

Pillow said the Virginia league has been receiving a little morefeedback than usual from members who disapprove of supporting acandidate on the basis of political party. But, he said, the leagueencourages credit union leaders to become involved with anycandidate's campaign regardless of party to ensure both sidesunderstand industry issues.

CUNA has also been receiving feedback regarding leagueendorsements and PAC donations that reflect the political divide,said President/CEO Bill Cheney. Feedback has been both positive andnegative, and has included criticism and endorsements of both parties.

“However, most Americans just want solutions that are good forthe country, and we want solutions that are good for creditunions,” he said.

CUNA doesn't consider party affiliation when spending PAC funds,Cheney said. In fact, according to opensecrets.com, a website thattracks PAC donations, of the $1.67 million CULAC has spent on candidates during this election season, 51%has gone to Republicans while 48% has been donated to Democraticcampaigns.

Cheney said CUNA doesn't give or deny support based on just oneissue. For example, Sen. Mark Udall (D-Colo.), who is the primary sponsor of memberbusiness lending bill S. 2231, hasn't marched in step with allpoints of the credit union agenda, and he's only a freshmansenator.

“But, there's no reason to think that he wouldn't be a creditunion friend,” he said.

NAFCU President/CEO Fred Becker called the business ofsupporting a member of Congress a balance test because an electedofficial may support one piece of credit union legislation but notanother. Although NAFCU's PAC has contributed more to Republicans than Democrats so farthis year, the blue team came out ahead in NAFCU contributions in2008.

“The big exception is interchange–you won't find anybody who gotmoney from us that voted against us on interchange,” Becker said.“They say time heals all wounds, but that wound remains open.”

Umholtz disagreed with trade association leaders that partydoesn't matter to credit unions. The fate of the nation's economicrecovery, the reduction or increase of regulatory burden and therenewal of consumer confidence that leads to economic recovery aremore important to credit unions than a candidate's enthusiasm forcredit union legislation, he said. 

“I don't see the Democratic Party delivering that withits current policy direction,” Umholtz said. “We also don't knowwhat the Republicans would deliver if in the complete majority butcan it possibly be worse than what we have now?”