America’s Credit Unions (AmCU) is aligning with President Donald Trump’s deregulatory initiative, calling on federal agencies to reduce burdens that it said are limiting access to affordable financial services and straining smaller institutions.
In response to President Trump’s Executive Order aimed at dramatically reducing the federal regulatory footprint, AmCU submitted a 23-page comment letter Monday detailing key areas of concern for the credit union industry, specifically those related to the NCUA, the CFPB and overlapping regulatory burdens.
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The letter, authored by James Akin, vice president of regulatory affairs at AmCU, was submitted to the Office of Management and Budget (OMB) as part of its Request for Information on identifying regulations for repeal, modification or replacement under the new “10-for-one” deregulation initiative. President Trump’s Jan. 31 order mandated that agencies eliminate at least 10 existing regulations for every new regulation proposed and emphasized that the total incremental regulatory cost for fiscal year 2025 should be “significantly less than zero.”
In the letter, Akin wrote that credit unions have long faced "duplicative and outdated regulatory requirements" from multiple federal agencies, and that the Executive Order presents an opportunity to “create a more modern, efficient and effective regulatory environment.”
One of the central issues raised is the overlapping authority between the NCUA and the CFPB. “The CFPB and NCUA both engage in supervision and enforcement over the same consumer financial laws and regulations for credit unions with more than $10 billion in assets, creating duplicative exams and burdensome compliance efforts,” the letter noted.
AmCU also highlighted concerns around rules such as the CFPB’s payday lending restrictions, Home Mortgage Disclosure Act (HMDA) reporting thresholds, and requirements related to unfair, deceptive, or abusive acts or practices (UDAAP). The organization urged that any deregulatory action “focus on eliminating requirements that provide limited consumer protection benefit relative to the cost of compliance.”
Additionally, the letter raised red flags about inconsistent treatment across financial sectors. “Any deregulatory action must ensure that credit unions are not disadvantaged relative to banks and non-depository fintech firms,” Akin wrote, adding that disproportionate compliance costs can hinder the ability of small and mid-size credit unions to serve their members effectively.
NCUA regulations were also in focus, including the agency’s risk-based capital requirements, which America’s Credit Unions argued have become outdated and “place undue constraints on credit union lending and growth.”
While supportive of responsible regulatory relief, AmCU emphasized the need to preserve effective oversight of financial safety and soundness.
“The NCUA’s prudential supervision of credit unions plays a vital role in ensuring institutional stability and protecting the National Credit Union Share Insurance Fund,” the letter stated. The group called on the administration to tailor deregulation efforts to remove redundant burdens without weakening critical safeguards.
OMB is expected to review industry input over the coming months as it prepares to implement the Trump administration’s deregulatory goals. In the meantime, AmCU said it would continue to work with the NCUA, CFPB and lawmakers to advocate for a balanced regulatory framework that allows credit unions to thrive while protecting consumers.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
