As the House Financial Services Committee prepares for a markup of legislation next week, the National Association of Federally-Insured Credit Unions is asking the panel to consider legislation that would allow credit unions to expand their services to underserved areas.
A credit union may only make loans to members within their field of membership, a restriction likely to skew an institution’s housing discrimination record, trade groups told the Department of Housing and Urban Development this week.
A proposal that would allow all credit unions to provide financial services to underserved areas simply is a power-grab by an industry hungry for expansion, the American Bankers Association charged Monday.
Having lost in the Senate, the National Association of Federally-Insured Credit Unions is asking the House to ensure that its version of an FY22 budget does not allow enactment of a controversial proposal that would require banks and credit unions to report customer transactions. A similar effort failed in the Senate last week. “NAFCU has serious concerns about this proposed reporting requirement,” Brad Thaler, the group’s vice president of legislative affairs, wrote in a letter to House members this week. In his FY22 budget proposal, President Biden proposed requiring financial institutions to report data to the IRS from accounts that
National Credit Union Administration examiners are too picky in their Anti-Money Laundering/Bank Secrecy Act enforcement and are citing financial institutions for small technical violations, credit union trade groups have told the agency.
Ginnie Mae, the federal agency that guarantees investors the on-time payment of mortgage-backed securities, is unfairly lumping credit unions into a category of risky financial services companies, officials from the national credit union trade groups said Monday.
The National Credit Union Share Insurance Fund remains healthy, and Congress should take no action to give the agency board new power to manage it or charge premiums, the two national credit union trade groups said Tuesday.
Credit union and banking trade groups are asking Congress to ignore proposals to impose a 36% fee and interest cap on loans made by financial institutions.
“The proposed 36% fee and interest cap would make it more difficult for many consumers to obtain credit, thereby harming the very consumers the legislation seeks to protect. Congress should reject these legislative measures,” the 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 the Senate Banking Committee.
Credit trade groups are continuing to press the National Credit Union Administration to lower its Normal Operating Level to 1.30%–a request that so far has been denied.
Credit union and banking political action committees have resumed making campaign contributions to House members who objected to the certification of some states’ Electoral College votes on Jan. 6.