Top Issues for 2016 in Brief

• NAFCU will continue to advance credit union regulatory relief. The Senate continues to work for an agreement to advance S. 1484, the "Financial Regulatory Improvement Act," while the House continues to move smaller stand-alone relief bills that have gained bipartisan support.
• Preserving credit unions' federal corporate income tax exemption remains our top legislative priority. In this election year, tax reform could get a fresh look, and NAFCU remains vigilant.
• Securing passage of national data security standards for merchants remains a key focus. Last year, we saw the introduction of bipartisan legislation sought by NAFCU in both the House and Senate – the "Data Security Act of 2015" (H.R. 2205/S. 961) – and NAFCU will be working to get that enacted into law this year.
• We continue to press for clear, transparent guidance from regulators so credit unions have the information they need to keep their operations compliant with regulators' expectations. NAFCU remains particularly concerned about regulatory matters under the CFPB's authority for which specific guidance is lacking. This includes the CFPB's approach on unfair, deceptive or abusive acts or practices.
• NAFCU will seek to preserve a government guarantee, maintain unfettered access to the secondary market and ensure fair pricing for credit unions based on loan quality rather than volume in any discussion of housing finance reform.
• Advancing field-of-membership reform is fundamental to NAFCU's advocacy efforts. In 2015, the NCUA board proposed a field-of-membership rule that seeks to modernize all federal charter types. NAFCU will submit formal comments on the proposal and will continue to urge the NCUA to do more to create a positive regulatory environment.
• Creating a capital system for all insured credit unions that provides for true risk-based capital and access to supplemental capital is a priority for NAFCU. While the NCUA's risk-based capital rule cleared the NCUA board last October, NAFCU believes legislative reforms are necessary, and it will pursue solutions with Congress this year.
• NAFCU will continue to advance member business lending reform through legislation and through the NCUA. Last June, the NCUA board issued a NAFCU-supported proposal that would remove many of the prescriptive underwriting and personal guarantee requirements. The final rule is expected early this year. NAFCU will also continue to work with Congress to advance legislation to provide relief from the arbitrary MBL cap.
• NAFCU is monitoring the CFPB's rulemaking efforts on overdraft and payday lending. We will work to ensure against any rule that might curtail credit unions' overdraft programs or limit federal credit unions' ability to offer NCUA-authorized payday alternative loans.
• NAFCU will continue to seek fairness under the Federal Communications Commission's ruling on autodialing. Last year, the FCC issued a declaratory order to clarify its interpretations of the Telephone Consumer Protection Act. NAFCU is concerned that the current exemption will prevent financial institutions from engaging in time-sensitive communications with consumers about identity theft or data breaches. NAFCU joined the suit as an intervenor-defendant.
• NAFCU continues to work with the Federal Reserve's evolving payments initiative for the U.S. payments system. In January 2015, the Fed announced two task forces – the Faster Payments Task Force and the Secure Payments Task Force. NAFCU joined the two newly formed task forces to ensure that any new payments system can be cost-effective, operationally effective and scalable for credit unions of all sizes.
• NAFCU is also focused on the growth of online marketplace lenders and the need for regulators to modernize existing regulations on traditional financial institutions to facilitate greater access to credit.

NAFCU remains committed to fighting for credit unions on the issues that matter throughout 2016 and beyond.  

Carrie Hunt is executive vice president of government affairs and general counsel for NAFCU. She can be reached at 703-842-2234 or [email protected].