Trade Group Says Trump Will Lower Regulations — And More

Credit unions that have been clamoring for less regulation will get that and more under the second coming Trump administration, officials at America’s Credit Unions said.

They will also see emboldened banks and other competitors renew their attack on the federal tax exemption enjoyed by credit unions since Democrat Franklin Roosevelt passed the New Deal in 1934.

Carrie Hunt, chief advocacy officer for America’s Credit Unions’s, said Donald Trump can appoint a new director of the Consumer Finance Protection Bureau after he takes office in January, and that new director will be able to immediately reverse rules.

“We would anticipate that we would see a new CFPB director in short order, and hopefully we would see some relaxation of regulation that causes great concern for credit unions,” Hunt said during a call with reporters Wednesday.

“The CFPB in the past year has issued proposals relative to overdraft, credit cards, and in general there’s been an increase in enforcement actions as well, which has caused a cooling effect on how credit unions deliver services to their members,” she said.

At the NCUA, Trump can’t remove directors, but he can appoint Kyle Hauptman, the remaining board member appointed by Trump in his first term, to replace Biden appointee Todd Harper as chair. And Trump will be naming the replacement for Hauptman, whose term expires in 2025.

America’s Credit Union has been allied with banks in opposing many of the CFPB’s rules, but banks have also renewed calls in recent months for Congress to remove credit unions’ exemption from federal taxes.

Hunt said protecting the credit union tax exemption, “which really goes down to our core business model,” remains the No. 1 priority of America’s Credit Unions.

“We certainly could see a host of new attacks and expect that,” Hunt said. “Banks and other competitors are always attacking credit unions and I think it is simply the fact that the fact the Trump tax cuts are expiring that gives new life and new opportunity to some of this rhetoric we’re seeing in the press.”

Hunt said the group has a mass of facts at the ready that show “how valuable the credit union system is and how valuable that tax exemption is in terms of actually fueling our economy.”

“Credit unions continue to show that their tax exemption provides benefits to consumers all across the board,” she said.

Meanwhile, America’s Credit Unions touted wins for U.S. House and Senate seats by candidates supported itself and allied leagues. Their candidates won 328 of the 331 races determined as of 2 p.m. Wednesday (165 Democrats and 163 Republicans), including 40 open seats (19 Democrats and 21 Republicans). Three candidates supported by the groups lost (two Democrats and one Republican) and seven seats had not been called.

Trey Hawkins, head of political affairs for America’s Credit Unions, noted the loss of U.S. Sen. Jon Tester (D-Mont.), who has held the seat since 2007 and served on the banking committee. Tester, a 68-year-old farmer and third-generation Montanan, was defeated by Tim Sheehy, a 38-year-old businessman and former Navy SEAL who moved to Montana in 2014.

Hawkins called Tester “one of our strongest champions going back over decades.”

“Heading into the election had a very tough uphill battle as a Democrat running in a Republican state,” Hawkins said. “But you know, we stick with our friends, particularly when they have stuck with us time and time again — whether it’s bucking their own party leadership to support credit unions or reaching across the aisle to support credit unions.”