Washington Credit Union Daily – Reporting on regulations, legislation and political developments affecting credit unions.

NCUA Board to Consider Final CUSO Rule on Oct. 21

The National Credit Union Administration board on Oct. 21 will consider a final rule governing the permissible activities for Credit Union Service Organizations—an issue that has been a contentious one for board members in the past.

Berger: SBA Direct Loan Proposal Could Discourage CU Lending

A proposed Small Business Administration direct loan program could discourage credit unions from participating in other SBA programs, B. Dan Berger, president of the NAFCU warned.

Treasury: Opponents of IRS Plan Misrepresent Proposal

Opponents of a Biden Administration proposal to require credit unions and banks to report data to the IRS from accounts that have “gross flow thresholds” over $600 have misrepresented the proposal and have engaged in spreading misinformation, a Treasury Department official charged.

Nussle Calls on CFPB’s Chopra to Use Exemption Authority

As Rohit Chopra takes the helm of the CFPB, CUNA President/CEO Jim Nussle is calling on the new director to use his authority to exempt credit unions from rules that are designed for businesses that take advantage of consumers.

Pelosi Endorses IRS Reporting Proposal

House Speaker Nancy Pelosi endorsed a Biden Administration plan to require credit unions and banks to report data to the IRS from accounts that have “gross flow thresholds” over $600.

NYC Dems: City Plan to Help Debt-Laden Taxi Drivers is Insufficient

A New York City taxi medallion relief plan touted by Mayor Bill de Blasio does not provide enough help to taxi drivers laden with loans, many of which were made by credit unions, key New York Democratic members of Congress said.

CUNA Renews Call to Exempt Credit Unions from CECL

CUNA last week renewed its effort to convince the Financial Accounting Standards Board to amend the controversial Current Expected Credit Losses standard, contending that credit unions should not have to comply with it.

GOP Senators: SBA Shouldn’t Make Direct Loans; IG Alleges Waste

Fifteen Republican senators are urging Democratic leaders to drop a proposal to allow the Small Business Administration to make $4.5 billion in direct loans to businesses without using credit unions and banks.

Dem Bill Takes Aim at Bank Mergers, But Not Credit Union Deals

Contending that banking regulators have rubber-stamped thousands of mergers, two Democratic lawmakers have introduced legislation that would require a more thorough review of such deals.

CUNA’s Nussle: Rewrite Outdated Federal Credit Union Act

The Federal Credit Union Act was last rewritten in 1998 and it is sorely outdated for the 21st Century, Credit Union National Association President/CEO Jim Nussle told the Senate Banking Committee in a letter.

Post Offices Are Testing Check-Cashing Service; NAFCU Says End It

The U.S. Postal Service is testing a pilot program in four locations that allows customers to use payroll checks and business checks to purchase gift cards, a Postal Service spokesperson said.

NFIP Gets Another Reprieve, But Senators Warn Premiums May Soar

The National Flood Insurance Program received a temporary last-minute reprieve last week, but lawmakers are warning that insurance premiums for many people are likely to increase without additional action by the Biden Administration.

Harper: Exams Demonstrate Need for Consumer Protection Focus

Citing deficiencies that NCUA examiners found during the past year, board Chairman Todd Harper renewed his call for the agency to develop a separate consumer protection examination. His remarks came during his confirmation hearing before the Senate Banking Committee.

Senate Confirms Rohit Chopra as CFPB Director

By a slim margin, the Senate confirmed Rohit Chopra as director of the Consumer Financial Protection Bureau.

Freddie Mac: Property in Minority Communities Reflect Appraisal Bias

As NCUA Chairman Todd Harper continued his call for solving bias in the appraisal industry, the Federal Home Loan Mortgage Company released new data last week showing that property in minority neighborhoods is appraised lower than property elsewhere.

Senate Committee Sides with Credit Unions on Military Base Rent

Defense Authorization Bill: The Senate Armed Services Committee has ignored efforts by bankers to gain the same free rent benefits that credit unions now receive on military bases. Meanwhile, the House approved adding a marijuana banking provision to the defense bill.

Financial Trades to Congress: Don't Let SBA Make Direct Loans

Republicans and financial trade groups, including NAFCU, are asking Congress to drop a Small Business Administration proposal to allow it to expand its direct lending programs.

NAFCU: Tax Exemption Loss Would Cost Feds $56 Billion Over Decade

The loss of the credit union tax exemption would result in a $56 billion loss in income tax revenue over the next ten years, according to a study commissioned by the National Association of Federally-Insured Credit Unions.

Yellen Pushes for IRS Provision as Ways and Means Approves Bill

As the House Ways and Means Committee completed its markup of tax legislation, the Biden Administration renewed its push for Democrats to add a controversial plan to require credit unions and banks to report the inflows and outflows from customer accounts to the IRS.

IRS: CU, Bank Reporting Rule Would Raise $460 Billion in 10 Years

Requiring financial institutions, including credit unions, to report to the Internal Revenue Service the inflows and outflows from customer accounts could raise $460 billion in additional tax revenue over ten years, according to IRS Commissioner Charles Rettig.

Biden Administration: IRS Plan Won’t Pose Problem For Credit Unions, Banks

Natasha Sarin, the Treasury Department’s deputy assistant secretary for economic policy, argues that the Biden Administration’s plan to require banks and credit unions to report data to the IRS from accounts that have “gross flow thresholds” over $600 will not pose an additional regulatory burden on financial institutions.

Draft House Tax Bill Omits Controversial IRS Provision

Draft tax legislation to be marked up by the House Ways and Means Committee does not contain a controversial proposal to require financial institutions to report the inflows and outflows from customer accounts to the Internal Revenue Service.