The Nussle Report07.02.2020
Credit unions win in Supreme Court decision
The credit union movement gained a HUGE win on Monday! The U.S. Supreme Court denied the American Bankers Association’s (ABA) petition to review NCUA’s field of membership rule. This is the end of the road of ABA’s years-long attempt in the courts to limit credit unions’ access to members.
We have fought extremely hard on this issue. Together with CUNA Mutual Group and NAFCU, we filed an amicus brief in this case and have sent numerous letters of support for NCUA to various stakeholders. The court’s decision validates our mission and structure and NCUA’s oversight authority – I wrote about the full impact of the decision in CU Journal.
I’m extremely proud of the collaboration throughout our movement to get this win for credit unions and members. Thank you ALL!
Supreme Court ruling on CFPB structure disappointing
This week, the Supreme Court also issued a ruling in Seila Law LLC v. Consumer Financial Protection Bureau – a case we’ve engaged on arguing the CFPB should move from a single director to a commission structure.
The Justices provided a complex ruling, saying the CFPB can have a director, but that the role must be fireable at will by the President. We’re disappointed in the ruling and believe it will only strengthen the partisan nature of the Bureau.
It was a busy week in Washington as Congress headed into its July 4th recess. Here are some areas where the CUNA/League system advocated:
- COVID-19: CUNA sent a letter to House Financial Services Committee leadership on the Treasury Department’s and Federal Reserve’s response to COVID-19, part of CUNA’s and Leagues’ continued efforts to advocate, provided resources, and respond to COVID challenges.
- SBA PPP Loans: We fully support a new bill that would simplify forgiveness from the PPP Loan program. Congress passed a bill this week that extends the deadline to apply for PPP Loans to August 8.
- Regulation D: We continued our push for a permanent rule to remove the limit of account transfers under Regulation D.
- PCA changes: We support NCUA’s interim final rule that proposes temporary prompt corrective action (PCA) changes to provide agency staff and credit unions with additional necessary flexibility.
- Anti-money laundering: We pushed the Senate to include the Anti-Money Laundering Act of 2020 in this year’s National Defense Authorization Act (NDAA).
- NCUA: We shared a letter with Chairman Hood regarding several policy changes we believe will help credit unions support members impacted by COVID-19.
- Central Liquidity Facility: We support NCUA’s temporary changes to the Central Liquidity Facility but will continue to push Congress for additional statutory changes.
- Supporting the unbanked: We continue to express concerns with bills that would require the Federal Reserve or the United State Postal Service to provide banking products and services they were not designed to provide.
Explaining the problem with the MBL cap
We’ve been fighting to raise or eliminate the member business lending (MBL) cap for years. Working with our coalition partners, we facilitated an opinion piece through the Foundation for Economic Education that outlines how raising the MBL cap will help small businesses and communities hurt by recent lockdowns. I encourage you to read and share it!
FASB names new chairman
The Financial Accounting Standards Board has named Richard Jones as its new Chairman. I sent him a letter earlier this week congratulating him on his new position. I also used the opportunity to ensure he is aware of our strong opposition to the application of CECL to credit unions. I look forward to continuing to work closely with the FASB on accounting issues important to credit unions.
HR compliance virtual conference
HR professionals have been inundated with an unprecedented volume of requirements and guidance documents recently. To help handle the burden, all are invited to join the CUNA HR Compliance Rule Changes Virtual Conference on July 28-30. The conference will include several sessions that are designed to leave HR professionals with real-world, applicable takeaways.
Happy July 4th, everyone! I hope you all enjoy some good food, good company (virtually or distanced!), and well-deserved extra time away from work.
Thank you for your continued participation in and engagement with the CUNA/League system. As ever, if you have any issues you'd like CUNA to address, I encourage you to give me a call directly at 202-508-6745 or email me at email@example.com.