NAFCU to tell Fed what members want

WASHINGTON-Members of NAFCU’s Board and senior staff were scheduled to meet with Federal Reserve Board officials last Thursday, after deadline, to present federal credit union issues to the super-regulator. Attending the meeting with Fed Governor Laurence Meyer and as many as 10 senior level staffers were NAFCU President and CEO Fred Becker, as well as nine NAFCU senior staffers and the entire NAFCU Board, minus Navy Federal Credit Union CEO Brian McDonnell, who was unable to attend. According to NAFCU’s report, its members want regulations that protect consumers without technological requirements; not to be construed as predatory lenders by offering loans requiring HOEPA coverage; and simplified mortgage disclosures. NAFCU also provided information on how federal credit unions assist low- and moderate-income people. Credit unions offer higher mortgage approvals to households will less than $40,000 in income; smaller mortgages; and service to underserved populations, the association maintained. “NAFCU members’ main concern regarding Federal Reserve regulations is that they not be overly burdensome,” the trade group’s report read. The report noted that the federal credit union community’s reaction to Fed regs regarding the Electronic Signatures and Global and National Commerce (E-Sign) Act has been generally favorable. NAFCU did point out one concern regarding what it considered “the rules’ restrictive definition of electronic addresses.” Credit unions and others have asserted that `electronic addresses’ should include those that solely share information between the consumer and the institution in addition to e-mail addresses. “The Board’s attempt to provide uniform yet flexible standards for the electronic delivery of disclosures is commendable and reflects an understanding of the need for rules that protect consumers without imposing restrictive specifications on financial institutions.” In its report to the Fed, NAFCU also inserted economic information from its October Flash Report and a survey of credit union usage of Fed products. According to NAFCU, over 93% of its members find Federal Reserve services, such as ACH processing, returned checks, and education seminars, `competitively priced.’ The most commonly used Fed services by respondents were the ACH processing (60.7%) and customer `help’ services (60.6%). A NAFCU spokesperson said that this meeting consisted of probably the largest audience the group has ever had with the Fed. The meeting marks the tenth time NAFCU has met with the Fed since 1992. [email protected]