Newsroom

NAFCU’s Congressional Caucus yesterday welcomed a stellar lineup of key officials, with thought-provoking remarks from several members of the House of Representatives, including Rep. Joyce Beatty, D-Ohio,  Rep. Carolyn Maloney, D-N.Y., and Rep. Ted Budd, R-N.C., on topics ranging from diversity and inclusion, to housing finance reform and regulatory relief.

Rep. Beatty, the first legislator of the day to address the audience, started by sharing a personal story of how she became a member of a credit union. “I remember when I was so excited to get my first car. I needed this car to get to work… and a credit union made it happen.” Speaking to a crowded room of hundreds of credit union representatives, Beatty also dove into the topic of diversity and inclusion, encouraging credit union leaders to talk more about it and understand that, “while diversity is important, what’s more important is inclusion and how you include others. It’s not just about race, ethnicity, or gender – it’s not about checking the box.” Beatty went on to say that credit unions must be willing to ask hard questions and really look at the communities they serve.

Continuing the day, Rep. Maloney opened her comments by thanking credit unions for their service during the 2008 financial crash. “You were the heroes and heroines in 2008; not a single scandal involved [you]. We need you every day in communities across the country.” Maloney went on to address the beneficial ownership rule, telling credit union attendees that the bill, also known as H.R. 2513, The Corporate Transparency Act, “would provide significant relief for credit unions… and would take the burden off of financial institutions” by requiring companies to disclose beneficial ownership at the time the company is formed. The Congresswoman from New York also stated that this would save credit unions “billions each year in compliance costs.”

NAFCU supports The Corporate Transparency Act, which has bipartisan support on the hill for its regulatory relief properties. NAFCU also has been engaging with lawmakers on another regulatory issue: the implementation of the current expected credit loss (CECL) standard, which Rep. Ted Budd, R-N.C., discussed later that morning.

In his remarks, Rep. Budd laid out his concerns about CECL and the negative impact it will have on the industry. He encouraged attendees to tell their respective members of Congress to support his bill, H.R. 3182, which would delay CECL. “This bill was key in getting FASB to delay this until 2023 for credit unions. With your outreach and help, we can keep this momentum going.”

Rep. Budd and House Small Business Committee Chairwoman Nydia Velázquez, D-N.Y., also touched on cyber security and data security, sharing their concerns over the increasing number of data breaches. Both members in their speeches alluded to the need for credit unions to be diligent in keeping up their defenses while doing what they can to protect consumers' information. In addition, Congresswoman Velázquez called for the creation of a legal framework to prevent cyberattacks.

On the topic of housing finance reform, both Congresswomen Maloney and Velázquez offered their initial reactions to the recently releasedTreasury Department's plan to reform the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, proposing to remove them from federal control. Housing finance reform plans from the Department of Housing and Urban Development (HUD) were also released.

Rep. Maloney stated that while there are a lot of familiar and supportive elements, she has “grave concerns about others.”  She also said that the plan could include private sector entities that compete directly with credit unions. “ Key elements of housing finance reform must include equal access for credit unions and small lenders.”

Chairwoman Velázquez also expressed concerns with the recent Treasury report but said, “Like many of you, I believe credit unions must have equal access to the housing market, and pricing should be determined by quality, not volume.”

NAFCU's Congressional Caucus ends today; get updates through NAFCU Today or #NAFCUCaucus on Twitter.

Through NAFCU's Grassroots Action Center, credit unions can find contact information for their lawmakers and look up key credit union-related legislation to see where their members of Congress stand on those bills. Credit unions can send letters, tweets, Facebook messages and also call their lawmakers concerning the current active campaigns on the Grassroots Action Center, which concern the NCUA's risk-based capital rule, data security legislation and regulatory relief efforts.