WASHINGTON (5/21/13)--There is still time for credit unions to register for Wednesday's Credit Union National Association National Webinar on the Credit Union Tax Status.

The tax advocacy webinar will feature:

• A legislative briefing on the tax situation facing credit unions; and

• Valuable information on the tools CUNA and state leagues are providing to help credit unions join the tax status fight.

The U.S. House and Senate have made broad-based tax reform a major priority. In the face of these reform efforts, CUNA and affiliated state credit union leagues have launched a large-scale, nationwide grassroots-mobilization campaign urging America's 96 million credit union members to deliver a united message to the U.S. Congress: "Don't tax my credit union!"

The initiative will urge lawmakers as part of any final tax reform plan to preserve the federal tax exemption credit unions receive as not-for-profit, member-owned cooperatives.

There is no cost to attend the CUNA webinar.

To sign up, use the resource link.

WASHINGTON (5/21/13)--

Click for larger view

As credit unions Unite for Good to get the good word out about the value of credit unions, the Credit Union National Association has succeeded in nabbing credit unions their share of the spotlight among nationwide media the past few weeks.
 
Since April 1, more than 14 of the nation's most prominent media outlets have featured CUNA and credit unions on topics ranging from student lending, the value of the credit union alternative, member business lending, financing automobiles, CUNA's regulatory agenda and more.  That doesn't count the background provided and interviews for upcoming media stories to be released soon or articles generated locally by credit unions and leagues..
 
"Some believe if the story is not in their local area, it's not important. But it certainly is," said Paul Gentile, CUNA executive vice president of strategic communications and engagement.
 

Click for larger view

"Often the local media play off what they see in the national press, so we always want to be sure we shine and are portraying credit unions as the excellent consumer choice that they are," Gentile said.
 
In May, CUNA and aSmarterChoice.org, the website that provides consumers with information about credit unions and helps them find one to join, were included in these articles, all centering on credit union student lending and CUNA's Student Borrowing Survey:

• The Wall Street Journal Sunday (May 19);
• The Wall Street Journal (May 11)'s Weekend Investor section;
• USA TODAY's Money section "Snapshot" (May 10);
• CNBC.com (May 4); and
• NBC Charlotte/WCNC.com (May 1).

In April, nine prominent media displayed credit unions' value, including:

• MSNBC "Your Business" TV (April 7), in a segment with Gentile on the credit union alternative;

• Reuters (April 12), with CUNA Deputy General Counsel Mary Dunn addressing credit loss reporting standards;

• U.S. News & World Report (April 22), with CUNA Senior Economist Mike Schenk discussing credit union financing for auto loans;

• The Huffington Post (April 23), featuring CUNA's Student Borrowing Survey;

• Fox Business News Online (April 23), featuring Gentile on credit unions' member business lending;

• Loans.org (April 23), with Schenk discussing auto loan activity;

• The Hill (April 24) ,  in which CUNA's President/CEO Bill Cheney, Executive Vice President of Governmental Affairs John Magill and Dunn discuss too-big-to-fail banks and CUNA's regulatory agenda;

• National Association of Student Financial Aid Administrators (April 24), with Gentile discussing CUNA's Student Borrowing Survey; and

• Accounting Web (April 25), CUNA's Student Borrowing Survey.

In March, articles were also featured in CNN.com (March 18); Bloomberg BusinessWeek (March 12); Compliance Week  (March 26) Accounting Today (March 19).
 
The initiatives of CUNA and the state leagues on credit union issues have also been mentioned in numerous regional, state or local articles and broadcast segments and podcasts that have been generated by leagues and credit unions locally.
 
Creating awareness about credit unions is part of CUNA's Unite for Good campaign to rally credit unions to support the system's strategic vision in which "Americans choose credit unions as their best financial partner.  For more information about United for Good and aSmarterChoice.org, use the links.

WASHINGTON (5/21/13)--The Credit Union National Association has spoken in support of National Credit Union Administration proposed fixed-asset rule changes, but is urging that more improvements be made to the rule, in a comment letter filed Monday.

The CUNA comment letter responds to a March NCUA proposal that makes plain language revisions to the agency's fixed asset rule, and adds new definitions and rewordings.

The changes would impact NCUA's current fixed-assets rule, Section 701.36, which allows federal credit unions to purchase, hold and dispose of property necessary or incidental to their operations. These fixed assets include office buildings, branch facilities, furniture, computer hardware and software, and ATMs.

The NCUA's amendments to section 701.36 would "clarify the regulation by improving its organization, structure and ease of use," CUNA Deputy General Counsel Mary Dunn wrote.

While these are positive improvements, Dunn also urged the NCUA "to take this opportunity to adopt substantive changes" that will make the rule more effective and meaningful for credit unions, while remaining faithful to the letter and intent of the Federal Credit Union Act.

"The rule in its current and proposed forms gives NCUA staff too much authority over the business decisions of federal credit unions...Involving itself into the decision-making process of credit unions is outside the duties for which the NCUA was created. CUNA is confident that credit unions themselves are in the best position to make business decisions and, conversely, are at a competitive disadvantage when NCUA dictates their business decisions to them," Dunn added.

CUNA's recommendations for improving the fixed-assets rule include:

• Eliminating the current regulatory limit imposed on the ownership of fixed assets, which is 5% of a federal credit union's shares, since it is not required under the Federal Credit Union Act;

• Improving the rule's definition of "partially occupy" to clear up some credit union confusion;

• If the cap is retained, using the blanket waiver concept to give credit unions additional flexibility under the fixed-assets rule;

• Adding an appeal process to denied fixed-asset rule waiver requests; and

• Issuing an annual report detailing fixed-asset rule waiver-request statistics from each region.

For more of CUNA's comments on the fixed-asset rule, use the resource link.

FARMERS BRANCH, Texas (5/21/13)--A revised version of Texas House Bill 500 provides nearly $1 billion in tax relief for Texas businesses, but has no provisions that are harmful to credit unions after the Texas Credit Union League lobbied a Senate subcommittee to remove amendments from the bill.
 
HB 500 was recently amended on the House floor to require a periodic review of state tax exemptions, the Texas Credit Union League said Friday (The Advocate May 17). Under the amendment, the state franchise tax exemption would have been subject to ongoing review. After additional amendments were added to the bill, it was sent to the Senate.
 
As soon as that legislative action occurred, the league began lobbying members of the Senate to gain their support for removal of the provision. A Senate subcommittee removed all amendments from the bill Thursday. In its revised form, the bill now provides tax relief for Texas businesses, but protects credit unions and other entities with the exemption.
 
However, it's still possible for lawmakers to amend the bill on the state Senate floor and the league will remain on guard, said Jim Phelps, political and grassroots director for the league.
 
The Dallas Morning News Thursday reported that Texas Attorney General Greg Abbott told Republican House members that a special session to address redistricting could be called after the regular session ends May 28.
 
The Credit Union National Association and state leagues earlier this month launched a large-scale grassroots effort which seeks to mobilize America's 96 million credit union members and deliver to Congress a direct, united message: "Don't tax my credit union!" Tomorrow at 3 p.m. ET, CUNA is conducting a free webinar on the new campaign. To register for the webinar, use the link.

WASHINGTON (5/21/13)--A Consumer Financial Protection Bureau confirmation vote and hearings on tax reform, qualified mortgages, the Dodd-Frank Act and other economic issues are expected in the U.S. Congress this week.

The Senate vote on Richard Cordray's nomination for the position of CFPB director could happen Thursday, Ryan Donovan, CUNA's senior vice president of legislative affairs, said. Cordray's nomination did not receive a Senate vote in 2011, and President Barack Obama appointed Cordray to the CFPB director position during a brief congressional recess in 2012.

Many Senate Republicans have consistently said they would block any CFPB nominee if certain structural changes were not made to the agency makeup.
Cordray's term as director would end this year if he is not confirmed.
Hearings on tap today include:

• A House Financial Services financial institutions and consumer credit subcommittee hearing entitled: "Qualified Mortgages: Examining the Impact of the Ability to Repay Rule";

• A House Financial Services monetary policy and trade subcommittee hearing focusing on the Securities and Exchange Commission rules for public companies to disclose their use of minerals that originated in the Democratic Republic of Congo; and

• The Senate Banking, Housing and Urban Affairs Committee hearing on the Financial Stability Oversight Council's (FSOC) annual report to Congress.

The yearly FSOC report will be discussed before the House Financial Services Committee on Wednesday. Other Wednesday hearings include:

• A Joint Economic Committee hearing on Federal Reserve Chairman Ben Bernanke's views of the current economic outlook;

• A House Financial Services oversight and investigations subcommittee hearing entitled: "Who Is Too Big to Fail: Are Large Financial Institutions Immune from Federal Prosecution?"; and

• A Senate Budget Committee hearing entitled "Supporting Broad-Based Economic Growth and Fiscal Responsibility through Tax Reform."

The House Financial Services capital markets and government sponsored enterprises subcommittee on Thursday will discuss a range of regulatory relief measures for investors and job creators.

Members of Congress are scheduled to leave Washington at the end of the week for the Memorial Day district work period. They are set to return on June 3.

WASHINGTON (5/21/13)--Plenty of news is swirling around recently approved and still-developing qualified mortgage changes, and this qualified mortgage (QM) news is featured in this week's edition of the Credit Union National Association's Regulatory Advocacy Report.

While Consumer Financial Protection Bureau Director Richard Cordray recently encouraged credit unions to continue to write non-QM loans, as long as they are supported by strong underwriting, participants at a recent symposium said there is little investor appetite for non-QM loans in the secondary market.

The remarks were made by a representative of the Securities Industry Financial Market Association. CUNA also participated in the symposium, which focused on the future of housing finance and was sponsored by accounting firm PricewaterhouseCoopers.

Low secondary market interest in QM mortgages could mean that credit unions that write non-QM loans may face an increasing need to hold them in portfolio, rather than selling them into the secondary market, CUNA Deputy General Counsel Mary Dunn wrote.

"CUNA continues to strongly advocate for flexibility for credit unions to issue mortgages to well-qualified members, without regard to the QM rules, and is carrying this message to the National Credit Union Administration, the CFPB, the Federal Housing Finance Agency, and other regulators," she added.

Other topics addressed in this week's Regulatory Advocacy Report include:

• The results of the May NCUA open board meeting;

• FHFA notices on lender placed insurance, terms and conditions;

• JPMorgan Chase & Co. issues regarding collections practices;

• A Securities and Exchange Commission credit ratings roundtable; and

• CFPB escrow rule clarifications.

Employees or volunteers of CUNA- and state credit union league-member credit unions can sign up below to receive the Regulatory Advocacy Report.

The Regulatory Advocacy Report is archived on cuna.org.

WASHINGTON (5/21/13)--Sen. Kirsten Gillibrand (D-N.Y.) is the latest member of the U.S. Congress to take on student loan issues, announcing a new bill, the Federal Student Loan Refinancing Act, over the weekend.

Gillibrand's bill would enable federal student loan holders with interest rates above 4% to refinance those loans at a fixed rate of 4%. The senator in a release said her bill would reduce interest rates for nine of 10 student loans nationwide.
"The nation's $1.1 trillion in student loan debt is contributing to sluggish economic growth, negatively impacting young borrowers' purchasing power, home and car ownership, and even small business growth and entrepreneurship.

Keeping interest rates low would help reduce the debt burden on students and strengthen their purchasing power to boost economic growth," Gillibrand said.

The senator said she would also support another recent piece of student loan legislation: the Student Loan Affordability Act. That bill, introduced last week by Senate Majority Leader Harry Reid (D-Nev.) and Sens. Tom Harkin (D-Iowa), Patty Murray (D-Wash.) and Jack Reed (D-R.I.), would cap federal student loan rates at 3.4% for another two years.

The federal student loan rate is scheduled to double from 3.4% to 6.8% on July 1 if Congress does not take action.

Other student lending solutions have been introduced in the House and Senate. Sen. Elizabeth Warren (D-Mass.) introduced a bill, the Bank on Students Loan Fairness Act, which would offer federal student loans at the same rates that are charged to banks through the Federal Reserve discount window. That rate is currently 0.75%.

Rep. Karen Bass (D-Calif.) in March introduced her own bill that would cap federal student loan interest rates at 3.4% and also allow some borrowers to refinance their student loan debt to improve their rate.

The Credit Union National Association's first annual High School Student Borrowing Survey, released last month, found that nearly half of high school seniors don't know how much they will need for college costs. That lack of knowledge translates to a greater student-debt burden after college.

In a recent meeting with Consumer Financial Protection Bureau officials, CUNA said credit unions could do more to help debt-saddled grads if the maximum credit union student loan maturity of 15 years was increased. (Use the resource link for an April 23 News Now story: CFPB Seeks CU Help For Student Loan Issues.)

MADISON, Wis. (5/21/13)--Attendees of the Credit Union National Association's America's Credit Union Conference in New York City will learn the secrets of taking bold action in times of duress from Lt. Col. Robert Darling, who served in the Gulf War as a decorated U.S. Marines combat helicopter pilot and was a key adviser to the Bush administration following the Sept. 11, 2001 attacks.
 
Credit Union Magazine senior editor Adam Mertz interviewed Darling in advance of his opening keynote address at ACUC, June 30. ACUC will be held June 30-July 3.
 
On Sept. 11, 2001, Darling had a front-row seat on history, standing side-by-side with President George W. Bush, Vice President Dick Cheney, then-National Security Advisor Condoleeza Rice, and other high-ranking government officials as they responded to the deadliest terrorist attack on American soil.
 
The author of "24 Hours Inside the President's Bunker" says he's "on a mission" to spread the word about the events he witnessed on Sept. 11.
 
In the interview Darling describes how leaders must combine decisive action with humility, allowing "people in the field" to be the difference makers.
 
"You're going to go to your most junior [employees] sometimes and you've got to have faith, trust and confidence in their abilities," Darling says. "You have to surrender control and follow what they're advising you to do because they know more about that potential crisis than maybe you do, and how to mitigate it or end it."
 
Darling will share the lessons he learned in a framework credit union leaders can apply to their operations, and underscore the importance of providing a firm financial foundation for members who are first responders and military personnel.
 
"In the credit union movement, we've got to give their families financial literacy," he said. "We've got to be able to offer programs where they feel they can get mortgages and buy cars and get those things they need so they can deploy away from their families and protect all of us."