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Washington Archive

Washington

Camp, Baucus Launch 'Tax-reform' Listening Tour

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MINNEAPOLIS-ST. PAUL, Minn. (7/8/13)--House Ways and Means Committee Chairman Dave Camp (R-Mich.) and Senate Finance Committee Chairman Max Baucus (D-Mont.) kick off their "tax-reform" tour today visiting two businesses here.

"Over the past two years we've heard from hundreds of experts on how to fix the tax code to make it simpler for families and spark a more prosperous economy.  We want even more input and want to hear directly from the American people," the chairmen of the two tax-policy writing committees said in a release announcing the first stop in their nationwide tour.

Today the two lawmakers have scheduled visits with multinational corporation 3M Company and Baldinger Bakery, a family run business.  The 3M Company reports $30 billion in global sales, 88,000 employees worldwide, with operations in more than 70 countries. Baldinger Bakery is described in the release as a fourth generation, family-run businesses in St. Paul, founded in 1888 when Henry and Rebecca Baldinger left Eastern Europe and made their way to America, which today features a state-of-the-art facility that can produce about 65,000 buns per hour.

On their tax reform tour, the tax-writing chairmen will be talking to a range of Americans and businesses--from large multinational corporations to small, family-run businesses, and to individual taxpayers.

Tax policy leaders have said they will take a "blank slate" approach to reform legislation, which would remove all tax expenditures from the code and would add back in those that make the grade.

It is the scenario that the Credit Union National Association warned credit unions to expect and why CUNA and the state credit union leagues launched a groundbreaking 'Don't Tax My Credit Union' campaign over a month ago to defend against a tax threat.

Use the resource link to read more about the campaign.

Compliance: Highlights Of Loan Participation Compliance Issues

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WASHINGTON (7/8/13)--Even before the National Credit Union Administration last week delayed the effective date for its final rule on loan participations until Sept. 23, the Credit Union National Association's compliance team was helping credit unions prepare for compliance by offering five key things credit unions should know about the rule in a CompBlog post.
 
The NCUA approved the loan participation rule at last month's open board meeting. The rule sets a limit on loans from one originator of 100% of a credit union's net worth, and provides an expanded waiver process for the single-originator limit and limits to one borrower.
 
The agency also approved a provision so that credit unions pushed over the limit by new rule can move their loans into line: such credit unions would not have to sell loans immediately to come into compliance but can bring their participation activity into line in the ordinary course of business or seek a waiver.
 
The original effective date was July 25. CUNA suggested many of the changes that made their way into the final rule and also urged the agency to delay the effective date.
 
In the CUNA CompBlog post, CUNA Senior Vice President for Compliance Kathy Thompson noted that the NCUA has expanded its requirements of what needs to be in loan participation policies. Under the new rule, the NCUA requires each federally insured credit union to establish limits on the amount of loan participations that may be purchased by each loan type. The agency also expects policies to cite the concentration limits in the regulation, or to set tighter limits, if the credit union so decides.
 
The new regulation specifies nine things that the loan participation agreement must address. Any loan participation consummated on or after the effective date will have to be based on an agreement that complies with the new regulation, Thompson wrote. "Probably much of what NCUA now requires is already in contracts," but those contracts should still be reviewed to ensure compliance ahead of time, she said.

Other key facts highlighted in CUNA's CompBlog post address
  • Risk retention requirements;
  • Concentration limits; and
  • Waivers.
CUNA also pointed out to NCUA the practical implementation issues that Thompson raised in this blog post.

For the full CompBlog post, use the resource link.

Media Action On 'Don't Tax' Campaign Highlighted In Cheney Report

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WASHINGTON (7/8/13)--The atmosphere was electric, says Credit Union National Association President/CEO Bill Cheney in the latest issue of The Cheney Report, as more than 1,200 participants of CUNA's America's Credit Union Conference took every opportunity to tell the credit union story.
 
For those who missed the action, Cheney shares some of the highlights of how credit unions and CUNA used their time "in the media hub that is New York" to get out the message "Don't Tax My Credit Union."
 
CUNA held a number of meetings with national broadcast and print outlets, including Fox Business News and Bloomberg Radio.
 
"It was an excellent opportunity to deliver a strong message on tax reform. On the Fox Business segment, I stressed that credit unions not only provide value for credit union members but for all consumers. When credit unions are active in a market, banks have to offer better pricing," Cheney writes in the report.
 
Also driving the credit union message home, the headlines appearing under the video on-screen helped to tell the story. Some key headlines that appeared to the national audience included:
  • Credit unions want to stop talk of taxing credit unions right off the bat;
  • Every $1 in credit union tax wipes out $10 in tax savings;
  • It's not the credit unions that would be paying the taxes--it's 96 million Americans who would be paying the taxes.
Use the resource link below to access the full Cheney Report and to read more about the ACUC and other hot credit union topics.
 

NEW: CFPB Releases Mortgage Rule Readiness Guide

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WASHINGTON (UPDATED: 7/8/13, 1:20 P.M. ET)--The Consumer Financial Protection Bureau today released the first edition of its 2013 Dodd-Frank Mortgage Rules Readiness Guide.

The bureau in a release said the guide was developed to help institutions of all sizes evaluate their readiness for the impending mortgage rule changes.

The guide provides high level topics that institutions should consider as they implement these rule changes, the CFPB added.

Topics covered in the document include key areas that may be closely examined during a review, and compliance management elements that may warrant review, modification, or other enhancement.

The CFPB said it plans to update the readiness guide as rule clarifications and amendments are finalized and new issues are identified.

For the full document, use the resource link.

House Financial Services Sets Post-recess Schedule

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WASHINGTON (7/8/13)--House Financial Services Committee Chairman Rep. Jeb Hensarling has set the July agenda for his committee.

Items currently on the schedule include:
  • A July 9 financial institutions and consumer credit subcommittee hearing on the Consumer Financial Protection Bureau's safeguarding of consumer data;
  • A July 9 oversight and investigations subcommittee hearing on the constitutionality of sections of the Dodd-Frank Act that concern "Too Big to Fail" financial institutions;
  • A July 10 capital markets and government sponsored enterprises subcommittee hearing on how government red tape hinders a healthier economy; and
  • A July 17 full committee hearing on monetary policy and the state of the economy. Federal Reserve Chairman Ben Bernanke will be the sole witness at that hearing and will present the Fed's semi-annual Monetary Policy Report.
The hearing schedule is tentative. For more on the hearings, use the resource link.