WASHINGTON (4/30/08)—The Credit Union National Association (CUNA) said Tuesday that the fight on Capitol Hill for credit unions and their members will continue, despite banker attempts to derail the Credit Union Regulatory Relief Act (CURRA, H.R. 5519) this week.
"This is not over. We will continue to push for passage of CURRA," CUNA President/CEO Dan Mica said Tuesday.
CUNA's lobbying team was on Capitol Hill early Tuesday morning after learning that a much-anticipated action on CURRA was pulled from the day's House voting schedule.
CURRA's noncontroversial status changed when the bankers disregarded House leadership wishes and objected to the credit union bill. House leaders had planned to pair the credit union measure with a regulatory relief bill for banks.
"From our perspective, the bankers thumbed their noses at House and committee leadership by violating an agreement for each of our industries to get relatively modest regulatory relief legislation now and work on broader elements later," Mica said, adding that he had talked to the bill's key sponsors, Reps. Paul Kanjorski (D-Penn.) and Ed Royce (R-Calif.).
"They are determined to bring CURRA back to the House floor for a vote as soon as possible either on suspension or under regular order," Mica said.
He noted that in coming days, CUNA will be holding private discussions with the two congressmen, as well as with Chairman Barney Frank (D-Mass.) of the House Financial Services Committee, to assess strategy and options.
Mica also said that had the bankers stuck by the agreement and not interfered with credit union legislation, the bill likely would have been approved easily in the House.
"By our whip count, we had at least 80% of the House with us yesterday had a vote been allowed to proceed. So we feel we go into these discussions in a strong position," Mica told credit unions.
CURRA proposes, among other things, to permit federal credit unions to add service to underserved areas regardless of original field of membership. It would also omit member business loans to underserved areas from counting toward the current cap.
CUNA and the leagues support CURRA, but emphasize that credit unions need additional regulatory relief measures that are included in the provisions of the broader credit union bill, the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537). CURIA would address the overall member business lending cap and approve a risk-based capital system for credit unions.
courtesy of cuna.org
Wednesday, April 30, 2008
Tuesday, April 29, 2008
House won't vote today on CU bill
WASHINGTON (4/29/08)—The Credit Union National Association's (CUNA) lobbying team will be on Capitol Hill early Tuesday morning to focus on next steps after learning that a much anticipated Credit Union Regulatory Relief Act (CURRA, H.R. 5519) was pulled from Tuesday's House voting schedule.
Reasons for the House leadership decision to pull the bill were not yet clear, according to CUNA President/CEO Dan Mica. However, he pointed out that the suspension calendar is reserved for noncontroversial measures.
CURRA's noncontroversial status changed when the bankers disregarded House leadership wishes and objected to the credit union bill. House leaders had planned to pair the credit union measure with a regulatory relief bill for banks.
CUNA and the leagues late Friday and Monday urgently requested that credit unions contact their members of Congress in advance of the expected House vote.
"The bankers will sacrifice their own regulatory relief measure simply to ensure credit unions get absolutely nothing from Congress," said Mica. "This behavior ultimately squeezes working Americans, who now more than ever should benefit from affordable financial services provided by credit unions."
CURRA proposes, among other things, to permit federal credit unions to add service to underserved areas regardless of original field of membership. It would also omit member business loans to underserved areas from counting toward the current cap.
However, only the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) would address the overall MBL cap and approve a risk-based capital system for credit unions.
"We will do our utmost to get CURRA back on the House schedule under regular order, if at all possible," said Mica.
The CUNA leader thanked state leagues and credit unions for their tremendous grassroots efforts in recent days. "Our preliminary reports indicated we would have had a solid victory if this had come to a vote," he added.
courtesy of cuna.org
Reasons for the House leadership decision to pull the bill were not yet clear, according to CUNA President/CEO Dan Mica. However, he pointed out that the suspension calendar is reserved for noncontroversial measures.
CURRA's noncontroversial status changed when the bankers disregarded House leadership wishes and objected to the credit union bill. House leaders had planned to pair the credit union measure with a regulatory relief bill for banks.
CUNA and the leagues late Friday and Monday urgently requested that credit unions contact their members of Congress in advance of the expected House vote.
"The bankers will sacrifice their own regulatory relief measure simply to ensure credit unions get absolutely nothing from Congress," said Mica. "This behavior ultimately squeezes working Americans, who now more than ever should benefit from affordable financial services provided by credit unions."
CURRA proposes, among other things, to permit federal credit unions to add service to underserved areas regardless of original field of membership. It would also omit member business loans to underserved areas from counting toward the current cap.
However, only the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) would address the overall MBL cap and approve a risk-based capital system for credit unions.
"We will do our utmost to get CURRA back on the House schedule under regular order, if at all possible," said Mica.
The CUNA leader thanked state leagues and credit unions for their tremendous grassroots efforts in recent days. "Our preliminary reports indicated we would have had a solid victory if this had come to a vote," he added.
courtesy of cuna.org
Monday, April 28, 2008
Report: CUs keeping key presence in auto loan market
RANCHO CUCAMONGA, Calif. (4/28/08)--Credit unions' performance in the auto lending marketplace mirrored the performance of banks and other financial institutions in 2007, according to CU Direct Corp. (CUDL).
The annual report, which highlights key credit union auto lending trends and statistics during the course of the previous year, indicated that credit unions maintained a significant market presence in 2007.
Of all auto loans originated last year, 16.9% were through credit unions--down slightly from 18.0% in 2006, according to the report. Likewise, banks' market share declined to 32.6% in 2007 from 34.2% in 2006.
CUDL, which administers the nation's largest indirect and point-of-sale lending network for credit unions, has developed the Auto Lending Business Intelligence Report as a resource for credit union organizations to better understand credit unions' role in the auto lending market, benchmark their performance and learn best practices.
The network includes more than 500 credit unions and 9,000 automotive dealers nationwide.
A key to credit unions' success in 2007 was their ability to offer competitive financing to their members when compared with other lending institutions, the report said.
Credit unions continued to offer low rates and flexible loan terms to grow loan volume, while other financial institutions turned to nonprime and subprime lending to boost their loan volumes. For instance, subprime loans made up nearly half of all the loans that finance companies originated in 2007.
"Auto lending continues to be the one area in which credit unions hold a significant market share," said CUDL Market Research Analyst Joe James. "In fact, there are five states in which an individual credit union is the top lender in the entire state."
The report also indicated that credit unions continue to effectively manage risk of their auto lending portfolios.
courtesy of cuna.org
The annual report, which highlights key credit union auto lending trends and statistics during the course of the previous year, indicated that credit unions maintained a significant market presence in 2007.
Of all auto loans originated last year, 16.9% were through credit unions--down slightly from 18.0% in 2006, according to the report. Likewise, banks' market share declined to 32.6% in 2007 from 34.2% in 2006.
CUDL, which administers the nation's largest indirect and point-of-sale lending network for credit unions, has developed the Auto Lending Business Intelligence Report as a resource for credit union organizations to better understand credit unions' role in the auto lending market, benchmark their performance and learn best practices.
The network includes more than 500 credit unions and 9,000 automotive dealers nationwide.
A key to credit unions' success in 2007 was their ability to offer competitive financing to their members when compared with other lending institutions, the report said.
Credit unions continued to offer low rates and flexible loan terms to grow loan volume, while other financial institutions turned to nonprime and subprime lending to boost their loan volumes. For instance, subprime loans made up nearly half of all the loans that finance companies originated in 2007.
"Auto lending continues to be the one area in which credit unions hold a significant market share," said CUDL Market Research Analyst Joe James. "In fact, there are five states in which an individual credit union is the top lender in the entire state."
The report also indicated that credit unions continue to effectively manage risk of their auto lending portfolios.
courtesy of cuna.org
Immediate CU grassroots action urged for CURRA
WASHINGTON (4/28/08)—On the cusp of an important House vote on credit union regulatory relief legislation, the Credit Union National Association (CUNA) and the leagues are urging credit unions to push back banker opposition and help clear the way for H.R. 5519, the Credit Union Regulatory Relief Act (CURRA).
The House is scheduled to consider the bill Tuesday (see related story : House set for CURRA vote tomorrow) and the credit union groups urged their members to contact House lawmakers in support of CURRA.
"Unfortunately, the bill is facing opposition by the American Bankers Association and other anti-credit union interests. We need your help to secure CURRA's passage in the House of Representatives," CUNA and the leagues said in their Friday Action Alert.
It added: "The bankers have declared that credit unions can have nothing, not now or ever. We need this win to show them otherwise! "
Credit unions were asked to call or email Congress immediately with the following messages:
H.R. 5519 should be non-controversial – most of the provisions of bill have already passed the House in 2004 and 2006. The only new provisions within CURRA are targeted to allow credit unions to serve underserved people and areas and were very recently discussed at a hearing before the House Financial Services Committee on March 6.
This is the first major piece of credit union specific legislation to be considered in the House of Representatives since 1998.
CURRA would help credit unions serve people and areas that do not have access to mainstream financial service providers. This is common sense. It is part of the core mission of credit unions to serve consumers, but only multiple group credit unions are eligible to serve the underserved under current law. CURRA makes all federally chartered credit unions eligible to serve the underserved areas.
VOTE YES on H.R. 5519. This is important legislation that will help credit unions serve their members well in the 21st century. CUNA and the leagues support CURRA, but emphasize that credit unions need additional regulatory relief that are included the provisions in the broader credit union bill, the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537).
courtesy of cuna.org
The House is scheduled to consider the bill Tuesday (see related story : House set for CURRA vote tomorrow) and the credit union groups urged their members to contact House lawmakers in support of CURRA.
"Unfortunately, the bill is facing opposition by the American Bankers Association and other anti-credit union interests. We need your help to secure CURRA's passage in the House of Representatives," CUNA and the leagues said in their Friday Action Alert.
It added: "The bankers have declared that credit unions can have nothing, not now or ever. We need this win to show them otherwise! "
Credit unions were asked to call or email Congress immediately with the following messages:
H.R. 5519 should be non-controversial – most of the provisions of bill have already passed the House in 2004 and 2006. The only new provisions within CURRA are targeted to allow credit unions to serve underserved people and areas and were very recently discussed at a hearing before the House Financial Services Committee on March 6.
This is the first major piece of credit union specific legislation to be considered in the House of Representatives since 1998.
CURRA would help credit unions serve people and areas that do not have access to mainstream financial service providers. This is common sense. It is part of the core mission of credit unions to serve consumers, but only multiple group credit unions are eligible to serve the underserved under current law. CURRA makes all federally chartered credit unions eligible to serve the underserved areas.
VOTE YES on H.R. 5519. This is important legislation that will help credit unions serve their members well in the 21st century. CUNA and the leagues support CURRA, but emphasize that credit unions need additional regulatory relief that are included the provisions in the broader credit union bill, the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537).
courtesy of cuna.org
Friday, April 25, 2008
CUNA to NCUA: No new regulatory burdens
WASHINGTON (4/25/08)—The Credit Union National Association (CUNA) said it does not support any new regulations suggested by a National Credit Union Administration (NCUA) on credit union corporate governance issues.
The NCUA has requested comments on whether new regulations are needed on a range of issues such as mergers, conversions, private insurance and related topics.
"This is one of the most significant comment letters CUNA will file this year," said CUNA Deputy General Counsel Mary Dunn. "Comments are not due until April 30 and we encouraged leagues and credit unions to weigh in with NCUA to oppose new regulations as we have done."
In January, the NCUA approved an advanced noticed of proposed rulemaking (ANPR) with proposals to amend its rules to more clearly define a credit union board's fiduciary duties in the face of major decisions, such as mergers or conversions to mutual thrifts.
In an April 18 comment letter to the agency, CUNA said it feels "very strongly" that credit unions need more regulatory relief, not additional constraints and that agency action on mergers and conversions is unwarranted at this time.
CUNA said the proposals would "needlessly intrude in the operations of credit union boards." Instead, CUNA recommended the NCUA consider "carefully crafted and circumscribed guidance on a very limited number of issues," such as communications with the members of a target credit union in a "hostile" takeover situation.
"We urge NCUA to work with CUNA and the credit union system in the development of such guidelines," the letter said, adding that CUNA would also like a role in future discussions on whether an appropriate standard could be developed on the scope of fiduciary duties of federal credit union board members.
The CUNA letter acknowledged efforts by the NCUA to provide some regulatory relief through its annual review of its regulations and initiatives, and urged the regulator to also review how the examination process could be improved.
"Federally insured credit unions are feeling besieged under the regulatory encumbrances they face daily," CUNA wrote. While not all of the burden is the result of NCUA-driven regulations—Bank Secrecy Act requirements play a huge role—CUNA noted that the NCUA has, in fact, adopted or proposed a number of initiatives in recent months.
"Further, credit unions across the country are increasingly raising concern about over-zealous examiners on a number of issues."
CUNA also warned that BSA compliance and negative examiner responses to reasonable efforts to assist members with mortgage workout plans are among the escalating concerns of credit unions.
courtesy of cuna.org
The NCUA has requested comments on whether new regulations are needed on a range of issues such as mergers, conversions, private insurance and related topics.
"This is one of the most significant comment letters CUNA will file this year," said CUNA Deputy General Counsel Mary Dunn. "Comments are not due until April 30 and we encouraged leagues and credit unions to weigh in with NCUA to oppose new regulations as we have done."
In January, the NCUA approved an advanced noticed of proposed rulemaking (ANPR) with proposals to amend its rules to more clearly define a credit union board's fiduciary duties in the face of major decisions, such as mergers or conversions to mutual thrifts.
In an April 18 comment letter to the agency, CUNA said it feels "very strongly" that credit unions need more regulatory relief, not additional constraints and that agency action on mergers and conversions is unwarranted at this time.
CUNA said the proposals would "needlessly intrude in the operations of credit union boards." Instead, CUNA recommended the NCUA consider "carefully crafted and circumscribed guidance on a very limited number of issues," such as communications with the members of a target credit union in a "hostile" takeover situation.
"We urge NCUA to work with CUNA and the credit union system in the development of such guidelines," the letter said, adding that CUNA would also like a role in future discussions on whether an appropriate standard could be developed on the scope of fiduciary duties of federal credit union board members.
The CUNA letter acknowledged efforts by the NCUA to provide some regulatory relief through its annual review of its regulations and initiatives, and urged the regulator to also review how the examination process could be improved.
"Federally insured credit unions are feeling besieged under the regulatory encumbrances they face daily," CUNA wrote. While not all of the burden is the result of NCUA-driven regulations—Bank Secrecy Act requirements play a huge role—CUNA noted that the NCUA has, in fact, adopted or proposed a number of initiatives in recent months.
"Further, credit unions across the country are increasingly raising concern about over-zealous examiners on a number of issues."
CUNA also warned that BSA compliance and negative examiner responses to reasonable efforts to assist members with mortgage workout plans are among the escalating concerns of credit unions.
courtesy of cuna.org
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