|
March 7, 2008 - NASCUS Chairman George Reynolds (GA) testified March 6 with representatives from the National Credit Union Administration (NCUA) and credit union trade associations on the need for credit union regulatory relief at a hearing of the House Financial Services.
The hearing “The Need for Credit Union Regulatory Relief and Improvement” was the first hearing in nearly five years focused exclusively on credit union issues. Discussion at the hearing centered on the Credit Union Regulatory Improvements Act of 2007 (CURIA), H.R. 1537, and the recently introduced Credit Union Regulatory Relief Act (CURRA), H.R. 5519.
Witnesses at the hearing included Reynolds for NASCUS; Chairman JoAnn Johnson, NCUA; Tom Dorety, Suncoast Schools FCU, Tampa, FL, Credit Union National Association (CUNA); Michael N. Lussier, Webster First Federal Credit Union, Webster, MA, National Association of Federal Credit Unions (NAFCU); and two banking representatives in a second panel.
Panelists shared similar messages regarding the need for capital reform and enhancements to member business lending. Reynolds expressed NASCUS’ support for a risk-based capital system for credit unions, as did NCUA Chairman JoAnn Johnson and witnesses from CUNA and NAFCU. “The state regulatory system strongly supports a risk-based capital system. It is a risk management tool for regulators,” Reynolds told Committee members. NASCUS also encouraged the Committee to consider alternative capital for credit unions as part of comprehensive capital reform.
Support for enhancements to member business lending including the proposed increase of the MBL cap in CURIA was also a consistent message among panelists. NASCUS supports revisions to member business lending and believes they are not a risk to safety and soundness. To read more about NASCUS’ testimony, click here.
The Committee also posed questions to the panel on service to the underserved and credit unions roles in addressing the mortgage crisis. Committee Chairman Barney Frank (D-Mass.) said there is a “sensible need for deregulation” for credit unions to enhance their ability to serve consumers of low income. Further, he noted that credit unions’ narrow involvement in the subprime mortgage crisis shows that it’s possible to lend to consumers of low economic means in a manner that doesn’t lead to abuses.
Committee members asked the panel how credit unions are helping consumers faced with foreclosure and mortgage issues, and witnesses concurred that credit unions are providing critical counseling services and mortgage workouts for many consumers. At the hearing, Reynolds encouraged credit unions to continue to help consumers during this challenging economic time.
Congressman Paul Kanjorski (D-Pa.), co-author of CURIA, expressed his hope that a credit union bill would pass the Committee very soon. NASCUS will provide updates as news develops. To read more legislative updates, click here.
|
