CUNA wrote the House Financial Services Subcommittee on Financial Institutions and Monetary Policy in response to two pieces of draft legislation discussed at its Tuesday hearing on treasury markets and financial institutions.
CUNA welcomes legislation from Subcommittee Chairman Andy Barr, R-Ky., that would raise the threshold for mandatory Consumer Financial Protection Bureau (CFPB) supervision to $50 billion (up from the current $10 billion).
“CUNA and the credit union movement have maintained that credit unions should be exempt from most of the regulations and CFPB supervision of the Dodd-Frank Act, enacted thirteen years ago,” the letter reads. “Credit unions, no matter their size, are not-for-profit financial cooperatives with a mission statement of serving their members, not outside stockholders. In fact, credit unions are governed by boards of directors that are derived from their membership, where each member has one vote, regardless of the size of their deposits or the length of their membership.
“In addition, CUNA has always urged the CFPB to exempt all credit unions from its supervision by exercising its exemption authority in Section 1022 of Title X of the Dodd-Frank Act,” it adds. “This section permits, but does not require, the Bureau to exempt any class of covered person from any provision of Title X or any rule issued by the Bureau under Title X if such an exemption is consistent with relevant statutory considerations that the Bureau must take into account in issuing an exemption.”
CUNA also called on for credit unions to be included in draft legislation that would allow banks—for one year—to pay Deposit Insurance Fund assessments with U.S. Treasury securities.
“We respectfully urge the Subcommittee to extend parity in this legislation as well, giving credit unions the option of paying any NCUSIF deposit insurance assessments with U.S. Treasury securities,” the letter reads. “In addition, we ask the Subcommittee to consider making this authority permanent. This would give financial institutions the flexibility they need to serve their members and customers. It would also provide an additional tool to enhance long-term capital and liquidity management planning.”