WASHINGTON NAFCU is working with lawmakers on a comprehensive regulatory relief package that would allow NCUA to mold new Consumer Financial Protection Bureau regulations to credit unions; allow NCUA to ease rules to equalize them with state rules; and modernize the Central Liquidity Facility; as well as old stand-byes like raise the cap on member business loans, allow credit unions to raise supplementary capital and allow all credit unions to add low-income communities to their fields of membership.
The NAFCU proposals were included in a letter sent this morning to leaders of the House and Senate who will be reviewing financial services reforms after they complete the current hearings on the 2010 Dodd-Frank Act, the effect of which has been a deluge of new regulations, according to the letter.
Dan Berger, chief lobbyist for NAFCU, said they are working with lawmakers of both parties on a bill that would address a variety of regulatory relief measures and hope Congress takes up the issue soon after the Dodd-Frank hearings.
Among the proposals:
- Giving NCUA power to grant parity to federal charters on a broader state regulation;
- Giving NCUA authority to delay and/or refine CFPB regulations, provided the objectives of the CFPB regulations remain;
- Modifying the Central Liquidity Facility by removing subscription requirement for membership and permanently removing the CLF borrowing cap;
- Enacting a risk-based capital system for credit unions;
- Allow credit unions to raise supplemental capital;
- Waiving nominal capital requirements for newly chartered credit unions;
- Eliminating the requirement that credit unions mail members privacy notices annually;
- Addressing data security concerns.
“The number of credit unions continues to decline on a monthly basis and the ever-increasing regulatory burden the industry is facing is accelerating that decline as compliance costs become even more onerous,” said NAFCU President Fred Becker in his letter to lawmakers. “It is with this in mind that we call on Congress to act on any and all of these proposals, whether as a comprehensive package, or individually.”