A proposed rule that implements a law requiring companies to report their beneficial owners to the Financial Crimes Enforcement Network could significantly alleviate credit union compliance burdens, the two national credit union trade groups said this week.
Saying that the National Credit Union Administration’s current rule governing Credit Union Service Organizations is sorely outdated and hampers innovation, the two national credit union trade groups are calling on the agency board to finalize an updated regulation.
The NCUA has proposed a rule that would expand CUSO lending authority by allowing the organizations to originate any loan that may be made by a federal credit union.
In comments submitted to the National Credit Union Administration, the American Bankers Association and the Independent Community Bankers of America said that rules that would allow Credit Union Service Organizations to expand their lending services should be withdrawn from consideration.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions have resumed making campaign contributions after a pause while they reevaluated their giving after the insurrection at the Capitol. CUNA has given nothing to members of Congress who objected to certifying the election for President Biden. NAFCU has given to Rep. Blaine Luetkemeyer (R-Mo.), and the National Republican Congressional Committee, which supports House Republicans.
The policy agenda being circulated during the Independent Community Bankers of America’s “2021 Capital Summit” contains major anti-credit union rhetoric, including pushing plans to eliminate the credit union tax exemption, getting credit unions covered by the regulations in the Community Reinvestment Act and insisting that the National Credit Union Administration is failing to properly regulate and oversee the industry. Other than that, their policy objectives are very similar to the Credit Union National Association’s and the National Association of Federally-Insured Credit Unions.
According to the American Bankers Association, the Office of the Comptroller of the Currency should reject any proposed merger of a credit union with a federal savings association because the OCC may not have the legal power to approve that type of deal. The ABA and the Independent Community Bankers of America are also accusing credit unions of using their tax exemption for financing the purchases.
Jim Nussle, the President/CEO of the Credit Union National Association, says efforts by the World Council of Credit Unions and other small non-profits to access funds to help development abroad is hampered by the procurement process used by the U.S. Agency for International Development. He is proposing a legislative solution.
The Internal Revenue Service’s portal to provide information to consumers about their federal coronavirus Economic Impact Payments is providing inaccurate information to many financial institutions and their customers, creating confusion for everyone involved, trade groups said last week.
“The information provided by the portal is often inaccurate, causing confusion for recipients because it is not updated in a sufficiently timely manner, resulting in erroneous messages to recipients,” groups including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote in a letter to IRS Commissioner Charles Rettig.
Vystar Credit Union agreed to buy Heritage Southeast Bank. The deal will be the credit union industry’s largest-ever bank acquisition and set off a war of words over the credit union tax exemption. VyStar Credit Union and the Credit Union National Association have a few things to say about the Independent Community Bankers of America’s characterization of the deal.
Brad Thaler, the National Association of Federally-Insured Credit Unions’ Vice President of Legislative Affairs, wrote to members of congressional tax-writing committees to warn them that the Independent Community Banker’s Association wants credit unions taxed to eliminate a source of competition for banks.