Newsroom

NAFCU President Fred Becker will give his perspective on current issues in the credit union industry during a Metropolitan Area Credit Union Management Association meeting set for Feb. 8.

Becker will discussthe proposed Consumer Financial Protection Agency and other legislative issues such as overdraft protection and interchange fees as well as current regulatory issues at the MACUMA meeting.

Regarding the CFPA, NAFCU is arguing that the proposed agency's oversight should be limited to unregulated financial services providers and that responsibility for consumer protection for credit unions should remain with NCUA.

Attention regarding the CFPA is currently on the Senate, where lawmakers are discussing a draft regulatory reform measure that currently contains no CFPA asset-size threshold for affected institutions. Therefore, the bill would authorize the CFPA to write and enforce consumer protection rules for all credit unions. Becker noted recently that because credit unions are member-owned, they are the most consumer-friendly of financial institutions and should not be subjected to the regulatory and cost burdens presented by the CFPA.

Becker will also discuss NCUA's proposed corporate credit union regulation and that resolving the legacy asset issue is key to the health of the corporate system. Released in November, the proposed rule covers a vast number of issues regarding capital requirements, governance and compensation to corporate credit union executives and directors. NAFCU is encouraging its members to provide their input to the association by Feb. 5 for its official comment. Input to NCUA is due March 9. NCUA is also hostingtwotown hall meetings on the rule.

The NAFCU president on Feb. 8 will also note NAFCU's efforts to encourage NCUA to clarify the merger process with standardized merger procedures and timelines. Becker, in a Jan. 12 letter to NCUA, wrote that the lack of standardized procedures is keeping many credit unions from being considered as merger partners. He also urged the agency to issue a formal communication urging credit unions to contact all NCUA regional directors regarding their availability to act a merger partner.

He'll also likely mention that credit unions are still struggling with rules implementing provisions of the Credit CARD Act. The Federal Reserve's latest rule, among other things, requires credit unions to determine their members' ability to repay the credit card obligation and bans interest rate increases in the first year following account opening. (NAFCU will soon issue a Regulatory Alert for members.)

The Feb. 8 MACUMA meeting is scheduled for 6:30 p.m. at the Key Bridge Marriott in Arlington, Va. For more information, click on the link below.