America’s Credit Unions Advocates for Regulatory Relief with NCUA
America’s Credit Unions has submitted recommendations to the National Credit Union Administration (NCUA) aimed at reducing regulatory burdens and modernizing outdated rules. The suggestions were detailed in a letter filed wednesday by Luke Martone, Regulatory Advocacy Senior Counsel for the association.
The recommendations stem from the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), which mandates federal banking agencies to review regulations every ten years for potential elimination or streamlining. While not legally required to do so, the NCUA voluntarily participates in this review process. This year’s review focuses on regulations related to agency programs, capital, and consumer protection.
America’s Credit Unions‘ proposals cover a range of areas, including:
* Community Development Revolving Loan Fund: The organization urges the NCUA to simplify the application process for this fund and actively solicit input from credit unions to ensure funding aligns with their needs.
* Central Liquidity Facility: Recommendations include expediting approval timelines for access to the CLF, reinforcing the idea that utilizing the facility doesn’t carry negative connotations, and permanently reinstating enhancements made during the CARES Act, specifically regarding corporate credit union agent authority.
* Low-Income Designation: America’s Credit Unions proposes expanding qualification methods for low-income designation, increasing openness in the process, and considering a reduction in the income threshold.
* Capital Adequacy: Building on a recent interaction to the NCUA, the organization advocates for modernizing capital standards by lowering the Community Credit Union Leverage Ratio (CCULR), easing restrictions on subordinated debt issuance, adjusting existing thresholds, and tailoring stress tests to better reflect credit union risk profiles.
* Nondiscrimination: The letter calls for the removal or revision of credit union-specific restrictions and overly broad appraisal liability standards that may conflict with the Fair housing Act.
* Truth in Savings: America’s Credit Unions recommends updating disclosure rules to account for digital channels and providing clearer guidance on fee disclosures.
* Advertising and Insured Status: The organization suggests modernizing signage and disclosure requirements for digital and mobile platforms,as well as social media.
* Member Inspection Rights: While supporting the preservation of the federal framework for member inspection rights, America’s Credit Unions proposes measures to prevent abuse, such as raising petition thresholds, limiting the scope of inspections, and expanding existing exemptions.
The full letter outlining these recommendations is available for review at this link.
