ARLINGTON, Va. -- The Credit Union Regulatory Improvements Act (H.R. 1537) has continued to gain legislative co-sponsors at warp speed in its first few months in the 110th Congress, which NAFCU says is a credit to credit union officials pounding the pavement.

"CURIA this year has continued to generate support. We're pleased to see the progress," NAFCU Director of Legislative Affairs Brad Thaler commented. He said he would like to see the legislation surpass the 125 co-sponsor mark that it achieved in the two years of the last Congress before the month-long August recess.

When asked why co-sponsorship is so important, Thaler explained, "It demonstrates the support for the legislation and support for moving the bill forward." He said he is expecting a full committee hearing this year either for CURIA on its own or as a part of a larger, more comprehensive regulatory relief package. House Financial Services Committee Chairman Barney Frank (D-Mass.) and House Financial Institutions and Consumer Credit Subcommittee Chairwoman Carolyn Maloney (D-N.Y.), who is also a primary co-sponsor of CURIA, have alluded to studying a financial services regulatory relief package next year even though one was signed into law last year under the Republican Congress.

No date has been set for a hearing but, "We're probably looking into September to do one...It is something that is on their radar screen and that's what co-sponsors help," he said.

NAFCU's strategy for pushing the bill is not to work piecemeal at this time. According to Thaler, "Right now I think we've got momentum behind it as a package."

The seasoned credit union lobbyist noted that Frank and others on the committee are pragmatists and realize that a bi-partisan effort will be necessary to get anything done despite Democratic control of Congress. "They like to try and get broad bipartisan support," Thaler said, so it helps to build bipartisan co-sponsors for legislation. CURIA right now has 77 Democrats including the bill's sponsor Congressman Paul Kanjorski (Pa.) and 37 Republicans. CURIA had lost a good number of its Republican sponsors in the Democratic take over of Congress, but has recovered very well with 20 new co-sponsors for this year.

Thaler said he thinks the new provisions added this Congress have been helpful in gaining additional supporters, especially the underserved areas provisions. He said NAFCU has been getting "a lot of feedback from the Hill that lawmakers want credit unions to have" that authority. NCUA was forced to pass a regulation last year limiting the adoption of underserved areas strictly to multiple common bond credit unions after the American Bankers Association successfully sued based on a strict interpretation of the law; NCUA contended that the legislative history demonstrated Congress' true intent for all federal credit union charter types to be able to serve underserved areas.

If anything, the ABA lawsuit has hurt the bankers' arguments against CURIA on Capitol Hill. "The hypocrisy of the banks has been demonstrated many times," Thaler said, adding especially when the banks are working to keep credit unions out of the very areas banks are abandoning.

A couple dozen CURIA co-sponsors have yet to re-up. "I think a number of them are ultimately going to sign back on...a lot of offices are hearing from constituents on any number of issues," he explained. They are busy and, if a member of Congress does not serve on the Financial Services Committee, the issue may not necessarily be front and center for them. However, if they hear from their credit union constituents on CURIA, they will pay attention, which is exactly why credit unions need to continue to raise the issue with their lawmakers in Washington, D.C. as well as back in the district.

NAFCU launched a major postcard campaign this year for member credit unions to send in bright green post cards in support of CURIA to their representative's offices. The group also encouraged members to meet with the legislators in their districts over the July 4th recess and other times. NAFCU's Web site, www.nafcu.org, also has links to write the various members of Congress. Additionally, NAFCU will be holding its Congressional Caucus in September at which hundreds of credit union officials typically swarm the Hill.

Though NAFCU's Annual Conference is not politically focused, Thaler said the issue could come up. He is participating in two sessions there. "We will be discussing CURA at the Annual Conference but I don't want to give too much away," he said.

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CUNA Considering All Options Including Possibility of Breaking CURIA into Bite-Sized Pieces

WASHINGTON -- Though NAFCU's lead lobbyist on CURIA has said he feels CURIA has momentum as a complete package, CUNA lobbyists have said they are willing to explore it in bits and pieces.
CUNA Vice President of Legislative Affairs Dean Sagar said CUNA is looking for any opportunity to take advantage. "I think we're going to see more smaller bills coming out of Financial Services. I've gotten the sense from talking with staff that as they get into July and certainly into the early fall that there's a lot of pressure to keep [Speaker of the House Nancy] Pelosi's (D-Calif.) four and five-day agenda going and she's looking for bills--smaller bills, consensus bills," he said. Under the Republican leadership in the last couple of Congress' they had cut the D.C. workweek back to typically three days.
Sagar sees the potential for some opportunities then. "I know also they're interested in dealing with underserved areas so that may give us an avenue on the underserved areas," he said.
One area where the two groups do agree is that the bankers are losing credibility in their arguments against CURIA. According to CUNA's lobbyists, the banks have been using the same arguments--almost verbatim--against the credit unions as they have against Wal-Mart, the realtors, and the Farm Credit System.
"It seems to be the word is the bankers are against everything and they're fighting everybody," CUNA Senior Vice President of Political Affairs Richard Gose said. "The more they do that the more they show their hand and we're, certainly from a grassroots side, pointing that out."
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