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NAFCU Board Meets with Federal Reserve's Powell

Washington (Dec. 7, 2015) - The National Association of Federal Credit Unions (NAFCU) Board of Directors met with the Federal Reserve today to present findings of the 2015 NAFCU Report on Credit Unions and discuss vital credit union issues. The meeting was hosted by Federal Reserve Board Governor Jerome Powell.

"Our 2015 NAFCU Report on Credit Unions shows that even though credit unions face many legislative and regulatory challenges, they play a critical role in serving their more than 101 million members and the nation's economy, and are well-positioned for future success," said NAFCU President and CEO Dan Berger. "This is the 23rd year that NAFCU met with the Federal Reserve, and we looked forward to discussing issues that are significant to credit unions and the financial services industry right now."

The 2015NAFCU Report on Credit Unions looks at five key areas: credit union trends, credit unions' service to their members and use of Federal Reserve services, legislative issues facing credit unions, regulatory issues facing credit unions, and emerging challenges and the future of credit unions.

Some of the highlights in the 2015 report include the following:

• Year-over-year loan growth is at its highest point in a decade, and survey respondents are reporting stronger demand for all major loan types as compared to a year ago.
• More credit unions are offering mobile banking services to their members (47 percent, up from 40.3 percent last year).
• Preserving credit unions' tax exemption status remains NAFCU's top legislative priority. A NAFCU- commissioned study released in February 2014 shows that the total benefit to consumers, businesses and the U.S. economy from the presence of tax-exempt credit unions is about $17 billion annually.
• Credit unions continue to be impacted by the increasing regulatory burden in the post Dodd-Frank Act environment and are in need of comprehensive regulatory relief.
• Data security and cybersecurity are critical issues for credit unions since credit unions pay to make their members "whole" when a data breach occurs.
• Congress needs to enact national data security standards for retailers, which hold consumers' sensitive financial information.
• Credit unions continue to devote a significant cost to their staffing and resources toward compliance solutions related to CFPB's mortgage rules and its Truth in Lending Act and Real Estate Settlement Procedures Act (TILA/RESPA) integrated mortgage disclosure rule that took effect in October.
• NCUA should withdraw its risk-based capital rule prior to the 2019 implementation date.
• Margins are shrinking across the credit union industry, partly as a result of declining fee income.
• Member growth is at its highest level in two decades.

NAFCU Board members that attended today's meeting at the Fed included Ed Templeton, NAFCU chair and president and CEO ofSRP Federal Credit Union in North Augusta, S.C.;Rich Harris, NAFCU vice chair and president and CEOof Caltech Employees Federal Credit Union in La Canada, Calif.; Jeanne Kucey, NAFCU treasurer and president and CEO of JetStream Federal Credit Union in Miami Lakes,Fla.; Debra Schwartz, NAFCU secretary and president and CEO of Mission Federal Credit Union in San Diego, Calif.; Martin Breland, president and CEO of Tower Federal Credit Union in Laurel, Md.; Tom DeWitt, president and CEO of State Farm Federal Credit Union in Bloomington, Ill.; Robert Fisher, president and CEO of Grow Financial Federal Credit Union in Tampa, Fla.; Jan Roche, president and CEO of State Department Federal Credit Union in Alexandria, Va.; Rod Taylor, president and CEO of Barksdale Federal Credit Union in Barksdale AFB, La.; and Daniel Weickenand, CEO of Orion Federal Credit Union in Memphis, Tenn.

In addition to NAFCU President Berger, other key association staff that attended include Anthony Demangone, executive vice president and COO, Carrie Hunt, senior vice president of government affairs and general counsel, and Curt Long, chief economist and director of research.

The information gathered in the 2015 NAFCU Report on Credit Unionsis based on the association's Federal Reserve Meeting Survey, an annual assessment of NAFCU members covering topics discussed in the report. The report also uses information from NAFCU'sEconomic & CU Monitor, CU Industry Trends Report and the association's 2014 study, "Economic Benefits of the Credit Union Tax Exemption to Consumers, Businesses and the U.S. Economy." The 2015 NAFCU Report on Credit Unionsis available at www.nafcu.org/research/reportoncreditunions.

The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. www.nafcu.org

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Patty Briotta
Director of Public Relations
703-842-2820
pbriotta@nafcu.org