CREDIT UNION NATIONAL ASSOCIATION (CUNA)
NATIONAL ASSOCIATION OF FEDERAL CREDIT UNIONS (NAFCU)

Credit Union Leaders Thank, Praise Sponsors of New Legislation
‘CURIA’ bill would help credit unions better serve America’s consumers

March 15, 2007

FOR IMMEDIATE RELEASE
Contact:
Pat Keefe, CUNA
(202) 508-6765; pkeefe@cuna.com

WASHINGTON – Leaders of the two national trade groups for credit unions today are thanking the sponsors of the Credit Union Regulatory Improvements Act (CURIA), HR 1537, for introducing the bill in the 110th Congress.

The bill was introduced today (March 15) by Reps. Paul Kanjorski, D-Pa., and Ed Royce, R-Calif.

“We commend Chairman Kanjorski and Rep. Royce for their work on this vital legislation. The Credit Union Regulatory Improvements Act would provide needed relief from regulatory burdens, modernize capital requirements, help promote small business development and allow more credit unions to reach out to the underserved. We believe CURIA is essential to maintaining the viability of credit unions and ensuring that they remain a low-cost financial alternative for millions of Americans. NAFCU looks forward to building support for the bill in Congress,” said Fred Becker, president and CEO of the National Association of Federal Credit Unions.

“On behalf of CUNA and our thousands of member credit unions nationwide, our thanks to the sponsors of HR 1537, for introducing this important legislation,” said Dan Mica, president and CEO of the Credit Union National Association (CUNA). “The ultimate goal of any credit union is to better serve its members. CUNA’s aim is to ultimately enact legislation that gives credit unions as much flexibility as possible to realize their goal”

As introduced, HR 1537 would (among other things):

• Incorporate the National Credit Union Administration's PCA reform/risk-based capital proposal to modernize net worth standards, thus freeing up additional capital for credit unions to provide their members with better and more affordable services.
• Clarify the 1998 Credit Union Membership Access Act to allow all credit unions, regardless of charter type, to serve those in underserved areas. The bill would also update the definition of an underserved area, incorporating definitions from the CDFI Act and the New Markets Tax Credit.
• Increase the current cap on loans to members for business purposes (MBLs) from 12.25 percent to 20 percent of assets, allowing credit unions to assist more members start and expand small businesses and to promote economic growth. The bill would also exempt loans under $100,000 and those to nonprofit religious organizations from the MBL calculation.

Establish additional consumer safeguards to ensure even greater participation and transparency in the process of converting credit unions to another type of financial institution, including the requirement that at least 30 percent of a credit union's members participate in any vote to convert to a mutual savings bank.

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The CREDIT UNION NATIONAL ASSOCIATION (CUNA) is the nation’s largest credit union trade group. With its network of affiliated state credit union leagues, CUNA serves 90 percent of America’s nearly 9,000 credit unions, which are owned by 89 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life.

The NATIONAL ASSOCIATION OF FEDERAL CREDIT UNIONS (NAFCU) is the only national organization of credit unions that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

Copyright © 2008 - Credit Union National Association, Inc.