NAFCU Announces 2013 Top Priorities
Washington – The National Association of Federal Credit Unions (NAFCU) announced its top priorities for the year, which include preserving the credit union tax exemption, secondary mortgage market access for credit unions, and reducing regulatory burden.
“Last year, NAFCU won a number of legislative and regulatory victories. But this is Washington, and more work remains. Our primary focus has been and will always be advancing and promoting credit unions and their critical role on Main Street and in helping our nation’s economic recovery,” said Fred R. Becker, NAFCU president and CEO.
“The fiscal cliff and the debt ceiling have set the stage for the larger debate about corporate tax reform in the 113th Congress. NAFCU’s number one priority is preservation of the credit union federal income tax exemption and we will be unwavering in our efforts to champion it while safeguarding credit unions’ distinctive status,” Becker continued. “We particularly appreciate the show of support for the tax exemption from The Military Coalition with their letter yesterday to congressional leaders. We will work with them and as many groups as possible to ensure the exemption is protected. ”
“In addition, the association will be working with the CFPB, NCUA, Federal Reserve and other regulators to mitigate credit union concerns related to upcoming rulemaking, particularly those related to mortgage lending and payments,” said Becker.
NAFCU’s 2013 top priorities are:
- Preserve credit unions’ federal tax exemption – Safeguarding credit unions’ federal income tax exemption is NAFCU’s top priority. Loss of the exemption would harm all Americans and cost the federal government $15 billion in lost tax revenue, $148 billion (in 2010 dollars) in GDP, and 1.5 million lost jobs over the next decade. Due to reduced competition, all consumers, regardless of credit union membership, would face higher interest rates on loans and lower interest rates on deposits, according to NAFCU’s 2012 landmark study on the economic benefit of credit unions.
- Preserve credit union access to secondary mortgage market – NAFCU will work to ensure any reform of the government sponsored enterprises, Fannie Mae and Freddie Mac, and the overall housing finance system ensures credit unions continue to have access to an impartial secondary mortgage market.
- Improve date security measures – NAFCU will continue to advance a set of core principles on data security that includes holding the entities responsible for breaches accountable for associated costs.
- Oppose price caps on credit card interchange – NAFCU will challenge any effort to place price caps on credit card interchange.
- Preserve and enhance the federal charter – Credit unions are facing ever-increasing regulatory burden, including several outdated requirements affecting service to underserved areas, community charter conversions, privacy notices, examinations and credit union governance. Statutory restrictions in these areas have a particularly adverse impact on the federal charter. NAFCU will work to advance measures to provide relief for federal credit unions.
- Promote capital reform – NAFCU continues to support supplemental capital efforts, while focusing efforts on risk-based capital changes that would be beneficial to credit unions—the only financial institutions that are currently held to a static set of capital classifications.
- Promote member business lending – Given the importance of small business to our still fragile economy, NAFCU will seek ways to facilitate greater credit union lending to member small businesses.
- Seek Dodd-Frank Act reform – This law is beset with technical problems. NAFCU will press Congress to review its indices on institutions’ size and CFPB supervision, provide clarity on the use of derivatives and protection of privileged information.
- Reduce regulatory burden and advance interagency coordination – NAFCU will work with the CFPB, NCUA, Federal Reserve and other agencies to reduce unnecessary regulatory burden on credit unions, including upcoming rules on mortgages, overdrafts, remittances, and capital. NAFCU will also continue to champion a more common-sense approach to rulemaking through effective coordination among regulators that is coupled with a thorough cost-benefit analysis to minimize the regulatory burden on credit unions.
- Seek E-SIGN reform – NAFCU supports streamlining the process for credit union members to opt in to electronic statements.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.