NAFCU letter expressing support for the Financial Services for the Underserved Act of 2016 (HR 5541)
WASHINGTON, DC (June 23, 2016) —
The Honorable Rick Metsger, Chairman
The Honorable Mark McWatters, Board Member
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314
RE: NAFCU’s Support of the Financial Services for the Underserved Act of 2016 (HR 5541)
Dear Chairman Metsger and Board Member McWatters:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only national trade association focusing exclusively on federal issues affecting the nation’s federally insured credit unions, I am writing to inform you of our support of the recently introduced Financial Services for the Underserved Act of 2016 (HR 5541).
On June 22, 2016, Representatives Tim Ryan (D-OH), Donald Norcross (D-NJ), and Ann Kirkpatrick (D-AZ) introduced this important piece of legislation that would grant individuals living in underserved and low-income communities expanded access to federal credit unions (FCUs).
Currently, residents of underserved communities have very few financial services options, and many of those options come at a high cost. Allowing FCUs the opportunity to provide low- and no-cost financial services in underserved communities would enable much needed growth and financial security, especially for the 28 percent of this country’s un- and under-banked households.
This bill would allow FCUs of all charter-types to add underserved areas to their field of membership (FOM). The legislation would require the applicants to have a method for servicing those new underserved areas within 24 months. NAFCU applauds this long-overdue move to allow credit unions to reach out to consumers who need their services the most.
Relatedly, we also applaud the agency’s November 2015 proposal to amend the FOM and Chartering rules. We believe that the proposal, along with NAFCU’s recommended-changes, would provide the requisite relief for credit unions trying to compete in the 21st century economy. Accordingly, we encourage the agency to finalize the proposed rule as soon as practically possible.
We appreciate the opportunity to share our thoughts on this matter. Should you have any questions or concerns, or if you would like to discuss this issue further, please feel free to contact me at (703) 842-2215 or firstname.lastname@example.org, or Carrie Hunt, NAFCU’s Executive Vice President of Government Affairs and General Counsel at (703) 842-2234 or email@example.com.
B. Dan Berger
President and CEO
National Association of Federal Credit Unions
cc: Mr. Michael Radway, Chief of Staff to Chairman Metsger
Ms. Sarah Vega, Senior Policy Advisor to Board Member McWatters
Mr. Todd Harper, Director of the Office of Public and Congressional Affairs
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.