Legislative & Political News

Full House Consideration of NDAA Begins Today

The House is set today to begin its consideration of its FY2020 National Defense Authorization Act (NDAA). Although more than 650 amendments were filed with the House Rules Committee, none of them would add credit union-opposed language extending to banks the rent-free access to military bases for which credit unions are eligible. The Rules Committee ultimately decides which amendments proceed to floor consideration.

Congress Returns After July 4th Recess

Both Houses of Congress will be back in session this week following last week’s July 4th recess. CUNA and the state leagues will be active on a number of credit union issues including the National Defense Authorization Act (NDAA).

NJ Governor Murphy Names Evan Weiss Senior Advisor for Public Finance

Tuesday, Governor Phil Murphy named Evan Weiss Senior Advisor for Public Finance. Weiss, an expert in public finance and economic development, has been hired by the New Jersey Economic Development Authority. Weiss is on mobility from the EDA to the Governor’s Office, where he will report to Deputy Chief of Staff for Economic Growth Joe Kelley and Chief Policy Advisor Kathleen Frangione.

Learn How the New NJ Minimum Wage Law Will Affect Credit Unions

In February, Governor Phil Murphy made good on a campaign promise to increase the state’s minimum wage to $15 per hour, with the first increase kicking in today, July 1. Some credit unions have already reported losing front-line staff to other employers. We’ve gotten two types of questions about the new law – what are the requirements and the exceptions, and then how are other credit unions dealing with the newly competitive market for talent.

CUT: House Bill Could Block Essential Phone Calls

The Credit Union Times reported today that Bipartisan House legislation that would block robocalls also could keep credit unions from being able to contact their members, trade groups said. The House Energy and Commerce Committee’s Communications and Telecommunications last week approved H.R 3375, which now goes to the full committee.

Senate Passes NDAA with CUNA-Opposed Language

The Senate passed its version of the National Defense Authorization Act (NDAA) for fiscal year 2020 Thursday with CUNA-opposed language expanding certain waivers for rent and other facilities costs for financial institutions on military installations currently granted to credit unions.

Governor Murphy to Sign Budget, No Government Shutdown

Gov. Phil Murphy announced Thursday that he will sign the budget passed by the Legislature to avoid a government shutdown on Sunday, June 30th despite the absence of the millionaire’s tax he insisted be included. Speaking at an event in Secaucus to publicize the extra $50M in NJ Transit funding it includes, Murphy said he “can’t play politics with innocent lives” and he “will meet our constitutional deadline” to sign the budget, though whether he makes line-item vetoes remains to be seen.

FSGG Appropriations Bill with CU-supported Funding Levels Passes House

The House passed the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2020 (H.R. 3351 Wednesday. CUNA wrote in support of the bill earlier this week due to the appropriations amounts for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).

CUNA Pushes Against Increased Bank Access to Military Bases as Senate Considers Defense Authorization Act

CUNA called on Senate leadership Monday to reject inclusion of any language in the National Defense Authorization Act (NDAA) for fiscal year 2020 that would expand the Department of Defense’s (DoD) authority to exempt financial institutions from certain costs on military installations. The current Senate version contains such language, while CUNA, leagues and the Defense Credit Union Council successfully blocked language in the House NDAA that would have broadened the exemption.

CUNA Engaged w/ Appropriations Markups, Robocall Hearing

CUNA will be engaged with Congressional activities in both chambers this week, including committee and floor consideration of legislation and hearings covering credit union priorities. Among other bills, the House is expected to consider the Financial Services and General Government (FSGG) Appropriations Act for fiscal year 2020 (H.R. 3351).

CUNA Engaged w/ Appropriations Markups, Robocall Hearing

CUNA will be engaged with Congressional activities in both chambers this week, including committee and floor consideration of legislation and hearings covering credit union priorities. Among other bills, the House is expected to consider the Financial Services and General Government (FSGG) Appropriations Act for fiscal year 2020 (H.R. 3351).

The bill contains appropriations for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund at $300 million and NCUA’s Community Development Revolving Loan Fund (CDRLF) at $2 million. CUNA wrote (please post and add link) to House leadership to express credit unions’ support continued funding of the programs.

The bill’s report language also contains credit union-supported language on the current expected credit loss (CECL) standard, NCUA’s support for community development credit unions in low-income communities and others.

H.R. 3351 passed the House Appropriations Committee June 11.

The Senate is expected to consider its version of the National Defense Authorization Act (NDAA) for fiscal year 2020. The bill contains CUNA-opposed language regarding bank access to military installations, and CUNA wrote to Senate leadership Monday with its concerns.

Bipartisan Measure to Restore SALT Workaround Introduced by Reps Gottheimer and King

Following the finalization of the U.S. Treasury Department’s rule on charitable contributions, U.S. Reps. Josh Gottheimer (NJ-5) and Peter King (NY-2) introduced a bipartisan Joint Resolution to fully repeal the Treasury Department’s ruling. This new rule effectively prohibits states like New Jersey and New York from allowing towns and municipalities to use charitable funds to offer real tax relief to their communities.

Robocall Prohibition Mark-Up This Week

On Tuesday the House Energy and Commerce Committee is expected to begin mark-up of the Stopping Bad Robocalls Act which has been reintroduce as H.R. 3375. The NJCUL reached out to the committee chairman Rep. Frank Pallone’s (D-6) office last week to express concerns that any legislative solution to the growing problem of unwanted robocalls not impede a credit union’s ability to contact members for legitimate purposes.

Greater Appraisal Consistency Benefits Consumers, Mortgage Lenders

Appraisals play a critical role in the home purchase process and a credit union’s assessment of the safety and soundness of providing a home loan, CUNA wrote to a House Financial Services subcommittee Wednesday. The House Financial Services subcommittee on housing, community development and insurance conducted a hearing on appraisals, which included a discussion of the Homebuyer Assistance Act of 2019 (H.R. 2852).

Salary Inquiry Ban Gets Final Legislative Approval, Sent to Governor

Legislation (A1094) that would prohibit an employer from asking about or considering an applicant’s wage or salary history when considering them for employment, or negotiating an offer of employment, received final legislative approval Thursday. The measure passed the Senate (25-9) yesterday and the Assembly (53-24-2) in March, largely along partisan lines in both chambers. It now heads to the governor who is expected to sign it into law.

Draft ILLICIT CASH Act Addresses BSA/AML Burdens

Credit unions support efforts to track money laundering and terrorist financing, but also believe it is important to strike the right balance between the compliance costs and benefits to the federal government, CUNA wrote to Senate Banking Committee leadership Wednesday before a hearing in which it will discuss draft legislation.

Salary Inquiry Ban Advances

Legislation (A1094) that would prohibit an employer from asking about or considering an applicant’s wage or salary history when considering them for employment, or negotiating an offer of employment, was reported from the Senate Labor Committee Monday. The measure passed the Assembly in March. The Senate companion (S559) passed the upper chamber last year and is currently pending Assembly Labor Committee action.

CUNA Engaged with Cannabis, Beneficial-Owner Hearings

Both the House and Senate are in session this week and will be conducting several hearings of note to credit unions. The House Small Business Committee will conduct a hearing Wednesday about small businesses in the legal cannabis industry. While CUNA and the state leagues have not taken a position on the legalization or decriminalization of marijuana, they support legislation that would allow credit unions to offer services to cannabis-based businesses in places where it is legal. 

Twenty Governors Pen Cannabis Banking Letter to Congress

Eighteen state and two territorial governors added their names to a letter sent last week urging Congress to pass legislation to enable financial institutions to provide banking services to state-licensed cannabis businesses. New Jersey Governor Phil Murphy (D) and Pennsylvania Governor Tom Wolf (D) were among the 20 signatories to the letter sent Thursday to U.S. Senate and U.S. House leadership, and the chairs and ranking members of the Senate Banking and House Financial Service committees. 

Draft Bipartisan BSA/AML Reform Released

A bipartisan group of senators has released draft legislation to reform aspects of the Bank Secrecy Act (BSA), specifically targeted at anti-money laundering (AML)-combating the financing of terrorism (CFT) requirements. The draft comes as the House Financial Services Committee marks-up a bill related to beneficial ownership disclosure.

Congress Should Seek Additional Information from FCC on Call-blocking Order, CUNA Writes Senate Commerce Committee

The Senate Commerce Committee should press the Federal Communications Commission (FCC) on what actions and rulemakings, if any, the agency will undertake to ensure legally permissible calls aren’t impacted by last week’s call-blocking ruling. The committee conducted its oversight hearing of the FCC Wednesday, and CUNA submitted its letter in response to last week’s FCC vote on call blocking.

FY20 Defense Authorization Passes Committee without Credit Union-Opposed Language

The House Armed Services Committee passed the National Defense Authorization Act (NDAA) for fiscal year 2020 early ThursdayWhile an amendment was offered that would have extended to banks the same rent-free access to land and facilities that credit unions have been granted due to their not-for-profit, member-owned mission and structure, CUNA, selected leagues, and the Defense Credit Union Council (DCUC) were successful in working with committee members to ensure such language was kept out of the final bill. 

CECL Delay & Study Bill Introduced, CUNA Offers Support

It is essential to delay the current expected credit loss (CECL) accounting standard to study its potential impact and allow consideration of other methods, CUNA wrote Tuesday in support of the CECL Consumer Impact and Study Bill of 2019, introduced by Reps. Vicente Gonzalez (D-TX) and Ted Budd (R-NC). Rep. Josh Gottheimer (D-NJ) is one of seven cosponsors of the bipartisan measure.

House Appropriations Committee Passes Bill with $300M for CDFI Fund, $2M for CDRLF

CUNA supported appropriations levels for two credit union-related funds in the Financial Services and General Government (FSGG) Act for Fiscal Year 2020 in a letter to House Appropriations Committee leadership Tuesday. The NJCUL also contacted committee member Rep. Bonnie Watson Coleman (D-12) and in March asked members of the state’s delegation to add their names to a “Dear Colleague Letter” encouraging appropriations for both funds.

CUAC Meeting Features Remittance, Debt Collection Talks

CUNA attended the two-day meeting of the Consumer Financial Protection Bureau’s (CFPB) Credit Union Advisory Council last week. The CUAC advises the bureau on regulating consumer financial products or services, from the perspectives of credit unions and is comprised solely of CUNA member credit unions.

Data Breaches Compromise Records of Nearly 20 Million

Medical testing company LabCorp. said Tuesday that personal and financial data on some 7.7 million consumers were exposed by a breach at a third-party billing collections firm. That company, the American Medical Collection Agency (AMCA), also recently notified another medical testing giant, Quest Diagnostics, that an intrusion in its payments Web site exposed personal, financial and medical data on nearly 12 million Quest patients.

Reminder: Web Site Available to File Wendy’s Data Breach Claims, Deadline is Sept. 30

Financial institutions affected by the data breach at Wendy’s restaurants can file their claims and find additional information at a website established as part of the settlement of that case, wendysfidatabreachsettlement.com. It contains a mechanism for filing claims, as well as additional information, frequently asked questions, a list of important deadlines and court documents.

Economic Factors Support Growth, FOMC Says

Members of the Federal Open Market Committee (FOMC) – the Federal Reserve's monetary policy-setting arm – viewed factors such as strength in the labor market, improved consumer confidence and diminished downside risks as "likely to support solid growth over the remainder of the year," according to minutes from the committee's April-May meeting released Wednesday.

Faster Payments, Debt Collection on CUAC Agenda

The Consumer Financial Protection Bureau (CFPB)'s Credit Union Advisory Council (CUAC) and other advisory boards will meet June 5-6 to discuss various issues affecting the industry, including faster payments and the bureau's proposed rule-making related to third-party debt collectors.

Community Lenders Must be at Core of Housing Finance Reform

CUNA Chief Advocacy Officer Ryan Donovan continued CUNA’s direct advocacy to staff from all 535 Congressional offices Thursday with a message highlighting six credit union principles for housing finance reform. CUNA has gone on record numerous times since the start of this Congress with housing finance reform priorities, emphasizing that policymakers must keep credit unions’ role in supporting their communities in mind.

Robocall Bill Passes Senate

The Senate Thursday passed legislation that would enhance the Federal Communications Commission's (FCC) enforcement authority over violations of the Telephone Consumer Protection Act (TCPA) and require voice service providers to authenticate and block illegal robocalls.

CU-backed Candidate Elected to Fill Pennsylvania Delegation Vacancy

Credit union supporter Fred Keller (R) won a special election to represent Pennsylvania’s 12th Congressional District in Congress Tuesday, defeating Democratic challenger Marc Friedenberg with 68.1% of the vote. Keller was supported by CUNA’s political action committee, the Credit Union Legislative Action Council (CULAC), and the Pennsylvania Credit Union Association.

CECL Delay Bill Would Ensure Impact is Properly Studied, CUNA Writes

CUNA maintains its longstanding position that the current expected credit loss (CECL) standard is inappropriate for credit unions and backed a bill Wednesday that would require the standard to be delayed and studied by the Securities and Exchange Commission along with the federal financial regulators, including the NCUA. Sen. Thom Tillis (R-N.C.) introduced the Continued Encouragement for Consumer Lending Act (S. 1564) Tuesday.

CUNA, Financial Trades Write Congress Opposing Reinstatement of CFPB’s Arbitration Rule

Reinstating the CFPB’s rule on arbitration agreements would undermine the ability of credit unions and other financial institutions to offer faster, more cost-effective resolutions to potential disputes than class action litigation, CUNA and other financial trades said in a joint letter to members of Congress Tuesday. CUNA joined other financial trade organizations to oppose an amendment to the Consumers First Act (H.R. 1500) that would reinstate the rule.

Disproportionate Compliance Burdens Mean Less Focus on Members, CUNA Tells Senate Banking Leadership

Credit unions take Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance seriously, but when resources are disproportionately spent on compliance, fewer safe and affordable products are available, CUNA wrote to Senate Banking Leadership Tuesday. The committee conducted a hearing Tuesday on combating illicit financing and the Treasury’s Financial Crimes Enforcement Network (FinCEN) customer due diligence (CDD) rule.

CULAC, PCUA Back Fred Keller in Tuesday’s Special Election

The Credit Union Legislative Action Council (CULAC), CUNA’s political action committee, and the Pennsylvania Credit Union Association (PCUA) are supporting State Rep. Fred Keller (R) Tuesday in the first special election of the 116th Congress. Keller is running for the seat in Pennsylvania’s 12th Congressional District, which is open due to former Rep. Tom Marino’s (R) retirement in January.

FCUs Must Be Allowed Access to Federal Courts, Says CUNA Brief

CUNA supports federal credit unions’ access to federal courts via diversity jurisdiction, one of the two methods for a federal court to have jurisdiction, the association indicated in an amicus brief filed Monday. CUNA’s brief was submitted to the U.S. Court of Appeals for the Fourth District, in response to a decision by the U.S. District Court for the Eastern District of Virginia that found Section 1332 of the U.S. Code is the sole source of diversity jurisdiction and that Section 1332 does not apply to federally chartered corporations.

FCC’s O’Rielly calls for swift action on CUNA’s TCPA petition

Federal Communications Commission (FCC) Commissioner Michael O’Rielly said Thursday during public remarks that the FCC has an obligation to resolve many of the worthy Telephone Consumer Protection Act (TCPA) petitions that are currently pending. He specifically cited CUNA’s petition, submitted in September 2017, that requests that FCC take action to provide credit unions with regulatory relief from the Telephone Consumer Protection Act (TCPA).  

FCC automatic robocall blocking could hamper CU-member communications

CUNA is concerned about proposed action from the Federal Communications Commission (FCC) that would block robocalls by default, believing it could result in serious disruptions to vital credit union-member communications. FCC Chairman Ajit Pai said Wednesday that the commission will vote June 6 on a declaratory ruling that would allow phone carriers to block suspected robocalls unless consumers affirmatively opt-out.

CUNA CECL data, concerns addressed in hearing with NCUA’s Hood

Members of the House Financial Services Committee cited CUNA data on the current expected credit loss (CECL) standard during a hearing Thursday with federal financial regulators including NCUA Chairman Rodney Hood. CECL is a new accounting standard that standard that recognizes lifetime expected credit losses, issued by the Financial Accounting Standards Board (FASB).

Senator Menendez Names New State Director

Sen. Robert Menendez has named Raphael Chavez-Fernandez his new State Director to lead the senator’s New Jersey offices and staff in Newark and Barrington.  Chavez-Fernandez, who served as deputy campaign manager during Menendez’s successful 2018 re-election run, returns to Menendez’s Senate office after spending the past three years working in the private sector.

ADA Lawsuit Dismissal Upheld

The U.S. Court of Appeals for the Fourth Circuit has upheld the dismissal of another lawsuit related to unclear Web site accessibility standards under the Americans with Disabilities Act (ADA). The lawsuit was against Herndon, Virginia-based Northwest FCU.

Flood Insurance Extender Passes House

Legislation (H.R. 2578) extending the National Flood Insurance Program (NFIP) through September passed the House Tuesday by a voice vote. The program is currently set to expire at the end of the month. The measure now heads to the Senate for consideration after which the president is expected to sign it into law.

CUNA Expresses CU Priorities, Difference Ahead of Hood Testimony

NCUA should take steps toward enhancements to the credit union charter, while improving cybersecurity efforts and reducing regulatory burden, CUNA President/CEO Jim Nussle wrote in a letter to Senate Banking Committee leadership in advance of NCUA Chairman Rodney Hood’s scheduled appearance before the committee. Hood will appear Wednesday as part of a panel of federal financial regulators.

Flood Insurance Extension Introduced

House Financial Services Committee Chairwoman Maxine Waters (D-CA) and ranking member Rep. Patrick McHenry (R-NC), late last week announced that they were introducing legislation that would extend the National Flood Insurance Program (NFIP) through September 30. The current authorization is set to expire on May 30.

CUNA Contacts Sen. Sanders, Rep. Ocasio-Cortez Highlighting Benefits of CU Difference in Wake of their USPS Banking Proposal

The best option for consumers to access high-quality, affordable financial services are the credit unions in their communities, CUNA President/CEO Jim Nussle wrote to Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) Thursday. The two legislators recently announced a proposal expanding the duties of the U.S. Postal Service (USPS) to include offering financial services and products.

Data security standards must be strong, consistent, apply to all

The best approach on data security and privacy for consumers and business is for Congress to develop a strong privacy law that applies to all businesses and entities that collect, house or otherwise possess information, CUNA wrote to leadership of the Senate Banking and House Energy and Commerce Committees Tuesday. CUNA’s letters state that Congress must address data security in order to provide consumers with data privacy.

CFPB should bolster PACE disclosures, consumer protections

The Consumer Financial Protection Bureau (CFPB) should quickly promulgate a Property Assessed Clean Energy (PACE) financing rule that subjects PACE programs to the Truth in Lending Act, plus additional disclosures, CUNA wrote to the CFPB Tuesday. PACE financing permits a property owner to finance the purchase of energy efficiency improvements and pay for the purchase through an assessment on the property.

Current TCPA Reflects Failure to Recognize Modern Communications

Mobile phone usage trends suggest that the Federal Communications Commission’s (FCC) existing interpretation of the Telephone Consumer Protection Act (TCPA) and implementing regulations is both outdated and harmful to consumers and credit unions, CUNA wrote Monday. CUNA sent its letter to the leadership of the Senate Appropriations sub-committee on financial services and general government for the record of its hearing on the FCC and Federal Trade Commission budget.

House Passes Senior Security Act, Congressman Gottheimer’s Bill to Address Financial Fraud and Scams Targeting Seniors

The U.S. House Tuesday passed the Senior Security Act (H.R. 1876) by a vote of 392 to 20. The bipartisan bill, introduced by Rep. Josh Gottheimer (D-5) and Rep. Trey Hollingsworth (R-IN-9), creates a Senior Investor Task Force at the Securities and Exchange Commission (SEC) to help stop financial predators from targeting seniors. The legislation will help strengthen protections and safeguards for seniors.

Substantial Data Security Legislation Needed for America’s Consumers

Taking a narrow view of data privacy and security aimed at specific companies would be a “grave mistake,” CUNA President/CEO Jim Nussle wrote to Senate Commerce Committee leadership Wednesday. The letter follows an email communication sent Tuesday by CUNA Chief Advocacy Officer Ryan Donovan to Senate Commerce Committee and House Energy and Commerce Committee staff on the importance of strong data security legislation.

CUs Must Continue Investment in Diverse Populations to Succeed

Credit unions are committed to advancing diversity, equity and inclusion (DEI) and have a long history of serving underserved and diverse communities, CUNA wrote to the House Financial Services sub-committee on diversity and inclusion Wednesday. CUNA submitted its letter for the record of the sub-committee’s hearing on diversity and inclusion in the context of business.

Chairman Pallone Notes Need to Distinguish Legitimate Calls from Robocalls

House Energy and Commerce Committee Chairman Rep. Frank Pallone (D-6) noted the need to distinguish legitimate calls, such as those made by credit unions to their members, from illegal robocalls from telemarketers during a Tuesday committee hearing. The New Jersey Credit Union League (NJCUL) has met numerous times with Rep. Pallone and the other members of New Jersey’s congressional delegation to discuss the issue and the need for clarity and protection for legitimate calls made by credit unions to their members. 

Governor Murphy Signs Bi-partisan Package of Nine Foreclosure Bills

Governor Phil Murphy Monday signed a bipartisan legislative package into law that will help New Jerseyans struggling with the state’s highest-in-the-nation foreclosure rate. The new laws will assist homeowners facing the prospect of foreclosure and pave the way for community revival by addressing blight. Many of the measures were recommended in a September 2018 report by the Special Committee on Residential Foreclosures, which was created by Chief Justice Stuart Rabner.

CUNA Reiterates Push Against Rent-free Bank Access to Military Bases

CUNA would be concerned with the inclusion of any language in the National Defense Authorization Act (NDAA) for fiscal year 2020 that would allow banks rent-free access to military installations, CUNA wrote to House and Senate Armed Forces Committee leadership Monday. There is no such language in the FY2020 NDAA, CUNA and the Defense Credit Union Council successfully fought for similar language to be removed from last year’s NDAA, it was included in an early version of the bill.

CUNA leaders meet with new NCUA board member Todd Harper

CUNA President/CEO Jim Nussle, Chief Advocacy Officer Ryan Donovan, Deputy Chief Advocacy Officer Elizabeth Eurgubian and Senior Director of Advocacy and Counsel Mitria Wilson met with new NCUA board member Todd Harper Wednesday to welcome him to the board and discuss credit union priorities. Harper was nominated by President Donald Trump in January and was confirmed in March, along with NCUA Chairman Rodney Hood.

Four Delegation Members Sign-on to House CDFI Dear Colleague Letter

Four members of New Jersey’s congressional delegation added their names to the “dear  colleague” letter to the House Appropriations Committee supporting continued funding of the Treasury Department’s Community Development Financial Institutions CDFI Fund (CDFI), Reps Bill Pascrell (D-9), Donald Payne, Jr. (D-10), Albio Sires (D-8) and Jeff Van Drew (D-2). A member of the committee, Rep. Bonnie Watson Coleman did not sign the letter, but assured the NJCUL she would support CDFI funding when it came up in committee.

CUNA Attends ‘Opportunity Zone’ Conference at White House

CUNA represented America’s credit unions at Wednesday’s Opportunity Zone Conference at the White House, an event featuring cabinet and other officials, along with state, local, tribal and community leaders. The Opportunity Zone program, created by the Tax Cuts and Jobs Act of 2017, encourages individuals and businesses to invest in 8,760 low-income communities designated “Opportunity Zones.”

Robocall Hearing Focuses on TRACED Act

A Senate Commerce sub-committee held a hearing Thursday to examine an FCC report on robocalls and review the steps that Congress is taking to provide relief from illegal calls. Witnesses offered support for the Telephone Robocall Abuse Criminal Enforcement and Deterrence, or TRACED Act (S.151), which was introduced by sub-committee Chairman John Thune (R-SD) and member Ed Markey (D-MA) and discussed suitable definitions of "autodialer."

Senate Republican Leader Kean to Challenge Rep. Malinowski in 2020

State Senate Republican Leader Tom Kean, Jr. (R-21) is expected to announce that he will challenge freshman Congressman Tom Malinowski (D-7) in 2020. Kean launched an exploratory committee in March and Monday sent an email invitation to supporters for a Tuesday evening event in Clark at which he is expected to formally enter the race for the Republican nomination in the 7th District.

Proposed SBA 7(a) Fee Increases Could Harm CU Business Lending

CUNA is concerned about a proposed increase in fees related to the Small Business Administration’s (SBA) 7(a) program, particularly since it believes it could come with unintended consequences to small business borrowers. CUNA shared those concerns in a letter to the House Small Business sub-committee on economic growth, tax and capital access for its hearing on the proposed 7(a) fee changes.

IRS Reform Bill Passes House

The House Tuesday passed by voice vote The Taxpayer First Act pf 2019 (H.R. 1957) that would make some structural changes to the Internal Revenue Service (IRS) and change the agency's interactions with taxpayers. Some of the provisions could impact certain credit unions. 

One-Size-Fits-All Regulations Hurt CU Services for 115M Americans

Megabanks continue to grow as credit unions work to provide access to affordable financial services to 115 million Americans, CUNA told the House Financial Services Committee Wednesday, and a one-size-fits-all approach brings addition burdens to those credit unions. The committee conducted a hearing Wednesday with the executives of seven of those megabanks.

CU Tax Status Toolkit Released by CUNA

CUNA is reaching out to leagues and member credit unions with a toolkit stocked with resources to demonstrate the wide variety of public benefits that exist due to the existence of not-for-profit financial cooperatives. CUNA members are being provided with a collection of resources that help amplify the good work that credit unions do for their communities while defending against attacks from banks on their tax-exempt status.

CU Tax Status One of the Best Investments a Government Can Make

The tax treatment conveyed on credit unions continues to serve the purpose for which it was created and is one of the best investments that the government makes in its citizens, concludes a new white paper from CUNA on the credit union tax status (see related story below). CUNA released the white paper to show the numerous benefits realized by Americans due to credit unions’ presence in the market, and how any change to the credit union tax status would result in a significant loss of those benefits.

FED Accepting Applications for Community Advisory Council

Application are now being accepted for the Federal Reserve Board’s Community Advisory Council (CAC). The CAC was formed in 2015 to offer diverse perspectives on the economic circumstances and financial services needs of consumers and communities, with a particular focus on the concerns of low- and moderate-income populations.

President Announces Choice to Head SBA

President Donald Trump Thursday announced that he plans to nominate Jovita Carranza to replace Linda McMahon as as head of the Small Business Administration (SBA). McMahon is stepping down April 12 to head up the American First Action super PAC.  Carranza currently serves as U.S. treasurer within the Treasury Department, and previously served as deputy SBA administrator under President George W. Bush.

CDFI Funding Round Opens, June 6 Deadline

The Community Development Financial Institutions (CDFI) Program announced Thursday that it will be accepting applications from credit unions and other institutions that qualify as CDFIs for up to $184 million in grants during its fiscal year 2019 funding round. The application deadline is June 6.

STATES Act is ‘Reasonable and Sound’ Approach to Cannabis Banking Issue

CUNA wrote in support of House and Senate companion bills Thursday that would clarify the federal treatment of marijuana where it is legal and permit credit unions in those states to serve members’ related needs. The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2019 was introduced by Sens. Elizabeth Warren (D-Mass.) and Cory Gardner (R-Colo.) in the Senate and Reps. Earl Blumenauer (D-Ore.) and Dave Joyce (R-Ohio).

Gov. Murphy Signs Executive Order Establishing New Regulatory Principles

Gov. Phil Murphy Tuesday signed an Executive Order establishing new regulatory principles to foster economic growth and government efficiency, as well as protect the environment, health, safety, and welfare of New Jersey’s residents and communities. Executive Order No. 63 rescinds and replaces Governor Christie’s Executive Order No. 2 (2010), which outlined the regulatory principles of the prior administration.

CUNA Weighs-in on TCPA Modernization Need, TRACED Act Passes Senate Committee

As Congress considers the budget for the Federal Communications Commission, it is imperative Congress encourage the agency to modernize implementing regulations for the Telephone Consumer Protection Act (TCPA), CUNA wrote Wednesday. CUNA sent its letter to the House Appropriations sub-committee on financial services and general government for its hearing on the FCC’s budget for the upcoming year.

CFPB Director Kraninger Named FFIEC Chair, McWatters Named Vice Chair

The Federal Financial Institutions Examination Council (FFIEC) announced Monday that Consumer Financial Protection Bureau (CFPB) Director Kathleen Kraninger will serve as FFIEC chair for a two-year term running through March 31, 2021. She succeeds FDIC Chair Jelena McWilliams. The FFIEC also named NCUA Board Chairman J. Mark McWatters as its new vice chair for the same two-year term.

TRACED Act Needs Exception for Legit Business Communications

While credit unions share concerns about unwanted robocalls to consumers, CUNA believes the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act (S. 151) as presently drafted would negatively impact credit union-member communications. CUNA pledged to work with legislators to improve the TRACED Act in a letter sent Monday to Senate Commerce Committee leadership in advance of the committee’s Wednesday mark-up of S. 151 and other bills.

TCPA Clarity Needed for CUs to Communicate with Members

Regulations governing how businesses can interact with consumers are not keeping up with technology, leaving both consumers and businesses at risk, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices Thursday. Credit unions are among the businesses that risk legal action when contacting members due to the Telephone Consumer Protection Act (TCPA).

Substantive Reform of CFPB Needed, Including Leadership Commission

While CUNA is concerned about several provisions of the Consumers First Act (H.R. 1500), it believes substantive reform at the Consumer Financial Protection Bureau (CFPB) is needed. CUNA wrote to House Financial Services Committee leadership Tuesday as it marked up several bills, including H.R. 1500 and the CUNA-League backed Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1595) (see related story).

GAO Report Calls for Increased Credit Bureau Oversight

The Government Accountability Office (GAO) has released a new report on the credit reporting agencies (CRAs) that recommends improving federal enforcement of data safeguards and oversight of the companies' security practices. CUNA and the state leagues believe credit bureaus should be examined for compliance with Gramm-Leach-Bliley Act (GLBA) data security standards.

115th Congress: Reps Lance and Gottheimer Most Bipartisan Delegation Members, Rep. Watson Coleman Least Bipartisan

The Lugar Center, led by former senator Richard Lugar (R-Ind.), and the McCourt School of Public Policy at Georgetown University named Rep. Leonard Lance (R-7) the most bipartisan member of New Jersey’s delegation to the last Congress, and Rep. Josh Gottheimer (D-5) the most bipartisan Democratic freshman based on their newly released Bipartisan Index for 2018.

FHFA Credit Score Model Needs Adequate Cost-benefit Analysis, CUNA Tells FHFA

The ability of the housing finance system to accurately assess credit risk while responsibly expanding access to affordable mortgage credit for consumers is a key concern for credit unions and the members they serve, CUNA wrote to the Federal Housing Finance Agency (FHFA) Thursday. The FHFA released a proposal on credit scoring in response to provisions in the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) directing it to establish a “validation and approval process for the use of credit score models” under which they operate.

House Passes Gottheimer-Lucas Bill for Transparency, Accountability at Federal Reserve

The U.S. House last week passed the Federal Reserve Supervision Testimony Clarification Act (H.R. 974) sponsored by Congressmen Josh Gottheimer (D-05) and Frank Lucas (R-OK), both members of the House Committee on Financial Services. The bill mandates that in the absence of a Vice Chair of Supervision on the Federal Reserve Board, someone from the Federal Reserve Board of Governors must appear before Congress to testify on supervisory issues. It also mandates that the Vice Chairman for Supervision must provide written testimony, in addition to verbal testimony.

Staff Changes in Two NJ Delegation Offices Announced

Rep. Bonnie Watson Coleman (D-12) announced this week that Kari Osmond and Courtney Cochran have been promoted to the position of deputy chief of staff. Osmond had been Watson Coleman’s district director. Cochran had been the communications director and press secretary in the Washington office.

Budget Proposal Again Nixes CDFI Funding, Brings CFPB into Appropriations Process

The Trump Administration has released additional details for the president's proposed budget for fiscal year 2020 (FY2020). The proposal shows similarities between previous ones including elimination of the Community Development Financial Institutions (CDFI) Fund, bringing the Consumer Financial Protection Bureau (CFPB) under the appropriations process, increasing government-sponsored enterprises' (GSEs) guarantee fees and reforming the National Flood Insurance Program (NFIP).

Frivolous ADA Lawsuit Against Ohio CU Dismissed

The U.S. District Court for the Southern District of Ohio has dismissed a lawsuit against an Ohio credit union alleging violations of the Americans with Disabilities Act (ADA). CUNA and the Ohio Credit Union League filed an amicus brief in Mitchell v. BMI Federal Credit Union as part of the CUNA/league defense of credit unions facing frivolous ADA suits.

CUNA Details Effects on CUs of Warren CRA Legislation

CUNA responded to several recent inaccurate reports about its support of Sen. Elizabeth Warren’s (D-Mass.) new housing bill, which CUNA, leagues and credit unions worked with Warren on for months, in a recent Removing Barriers Blog entry. Through these advocacy efforts, Warren’s bill does not place credit unions under the Community Reinvestment Act (CRA), as the version introduced in the previous Congress would.

Strong, National Data Security/Privacy Standard Only Way to Stop Breaches

Stringent data protection requirements is a hallmark of the financial services industry, but the lack of standards for other entities mean current data security and privacy laws do not work, CUNA wrote Friday. Its letter was sent to Senate Banking Committee leadership in response to an invitation of stakeholder feedback on collection, use, and protection of personal information by financial regulators and private companies.

Warren Bill is Proof CU Difference Resonates, Says Donovan

The credit union mission and structure is a tentpole of credit unions’ advocacy playbook because it resonates with lawmakers, CUNA Chief Advocacy Officer Ryan Donovan wrote in Credit Union Times this week. This is evidenced by successful CUNA, league and credit union engagement with Sen. Elizabeth Warren over the last several months.

Senator Warren Releases CRA Bill Reflecting Months of CUNA/League Engagement

Sen. Elizabeth Warren (D-Mass.) released an updated version of her housing legislation Wednesday, a version of the bill that reflects significant engagement between CUNA, leagues, credit unions, and Warren. Unlike the previous version, the American Housing and Economic Mobility Act of 2019 would not require credit unions to comply with the Community Reinvestment Act (CRA).

CU Leaders Visit Capitol Hill on Behalf of Members

Credit unions could be spotted in every single Congressional building on Capitol Hill Wednesday as credit union leaders visited with elected officials to tell stories about the credit union difference, including New Jersey credit union advocates (see related story above). The visits are an annual tradition that is part of the CUNA Governmental Affairs Conference (GAC).

NJ Joins Annual Hike-the-Hike During CUNA’s GAC, Meetings Held with All 14 Delegation Offices

WASHINGTON – After wrapping up at the Wednesday morning session at CUNA’s Governmental Affairs Conference, leaders in attendance headed to Capitol Hill for meetings with their legislators. Fourteen professionals and volunteers from seven New Jersey credit unions joined NJCUL President/CEO David Frankil and Vice President of Corporate & Governmental Affairs Chris Abeel and CUNA Engagement Consultant Sterling Nowka in meetings with the offices of all 14 members of New Jersey’s delegation.

Vice President Pence Delivers Message to Credit Unions

WASHINGTON – At the Credit Union National Association Governmental Affairs Conference (CUNA GAC) Tuesday, credit union professionals from around the country gathered to hear Vice President of the United States Mike Pence recognize credit unions for the vital role they play in the American economy.  

Congresswoman Mikie Sherrill Visits With NJ CU Advocates at League’s GAC Dinner

WASHINGTON – Rep. Mikie Sherrill (D-11), one of the newest members of the state’s congressional delegation, joined New Jersey credit union advocates at a New Jersey Credit Union League dinner in Washington, D.C. Tuesday evening. The dinner was held for NJCUL-member credit unions that are in Washington this week for CUNA’s Governmental Affairs Conference (GAC).

CUNA Backs SAFE Banking Act to Allow Financial Services to Legal Cannabis Businesses

The absence of access to financial services for legal cannabis-based businesses is a significant public safety issue, CUNA wrote to Reps. Ed Perlmutter (D-Colo.), Denny Heck (D-Wash.), Steve Stivers (R-Ohio) and Warren Davidson (R-Ohio). The legislators introduced the Secure and Fair Enforcement (SAFE) Banking Act, which would offer protections to credit unions and other financial institutions to offer services to cannabis-based businesses.

Record-Breaking 100 Young Professionals 'Crash the GAC,' Take Part in CU Advocacy Efforts in Nation’s Capital

CUNA President/CEO Jim Nussle welcomed a record-breaking class of “crashers” Sunday at CUNA’s Governmental Affairs Conference (GAC), including our New Jersey representative Amanda Meeker from Jersey Shore FCU. Meeker is sharing photos in the NJ CU Emerging Leaders Facebook group and will be sharing her experience in an upcoming blog post.

Marijuana Banking Bill Introduced in U.S. House

Legislation to provide a safe harbor for credit unions and other financial services providers that serve marijuana-related businesses in states where the drug has been legalized in one form or another was introduced Thursday by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA).

Can’t Make it to CUNA GAC? Here’s How to Follow the Action

For those unable to join the more than 5,000 credit union leaders at this year’s CUNA Governmental Affairs Conference (GAC), it’s possible to follow along the conference via social media and other channels. CUNA President/CEO Jim Nussle’s keynote address will be streamed live online, and attendees will be on social media using the #CUNAGAC hashtag.

Robust Security Standards Needed for All Data-handling Entities, CUNA Letter for the Record Notes

The cornerstone of any new data privacy requirements should be robust data security requirements for entities that collect consumers’ personal information, CUNA wrote to the House Homeland Security sub-committee on investigations Wednesday. CUNA’s letter was submitted for the record of the sub-committee’s Thursday hearing on private sector data breaches.

Governor Murphy Presents Fiscal Year 2020 Budget Entitled "A Blueprint for the Middle Class”

Governor Phil Murphy Tuesday presented his Fiscal Year 2020 (FY2020) budget to a joint session of the state Legislature, a plan he said, “to put New Jersey on a responsible path forward through over $1.1 billion in sustainable savings and support for the middle class through targeted investments in NJ TRANSIT, school funding, social services, and property tax relief.”

Senator Menendez Names New Legislative Director

U.S. Senator Robert Menendez (D-N.J.) has named Rebecca Schatz as his new Legislative Director. Schatz has been serving as his legislative counsel and has covered the senator’s financial services and housing portfolios on the Senate Banking Committee. She has been the primary contact for the New Jersey Credit Union League (NJCUL) in the Senator’s office.

Court Grants Preliminary Approval of Wendy’s Lawsuit Settlement

On February 26th, the U.S. District Court for the Western District of Pennsylvania granted preliminary approval of a proposed settlement in First Choice Federal Credit Union v. The Wendy's Company, a data breach lawsuit brought by CUNA, leagues and credit unions affected by a data breach. The parties submitted their proposed settlement to the court February 13, which would conclude the lawsuit stemming from a 2016 data breach at certain Wendy’s franchise locations.

Push for Data Security Continues with CUNA Letter to All 535 Congressional Offices

CUNA Chief Advocacy Officer Ryan Donovan wrote to 535 Congressional offices Thursday continuing CUNA’s call for data privacy and security legislation. Thursday’s outreach is part of several efforts for CUNA on the topic of data privacy this week, CUNA also wrote to the House and Senate Commerce Committees for the record of their data privacy hearings.

CUs' Diversity and Inclusion Commitment Outlined for Financial Services Subcommittee

CUNA and its members are committed to ensuring diversity and inclusion continue to play a meaningful role in every aspect of the credit union system, CUNA wrote for the record of a subcommittee hearing scheduled for Wednesday afternoon. The hearing, titled “An Overview of Diversity Trends in the Financial Services Industry,” will be the first conducted by the House Financial Services subcommittee on diversity and inclusion, newly formed for the 116th Congress.

Small Business Disclosure Bill Passes State Senate with League Requested Amendments

State legislation (S2262) that supplements New Jersey’s “Small Business Loan Act” by applying some disclosure provisions of the federal “Truth in Lending Act” (TILA) to certain loans made to small businesses in the state passed the Senate last week 35-0. The measure was amended in at the NJCUL’s request to exempt credit unions and Credit Union Service Organizations (CUSOs).

CUNA Engaged with Data Privacy, CDFI, Diversity Hearings this Week

CUNA wwas engaged with a variety of hearings in both chambers of Congress this week, including ones on data privacy and diversity in financial services. The Senate Banking Committee met in executive session to vote on NCUA board nominees Rodney Hood and Todd Harper, and nominee for director of the Federal Housing Finance Administration Mark Calabria (see related story).

Governor Signs Paid Family Leave Expansion

Governor Phil Murphy yesterday signed into law legislation to expand the state’s paid family leave program. The legislation (A3975) extends leave time limits, provides higher compensation to those taking leave, covers more family members, broadens job protections and boosts awareness of the program.

CUNA Stresses Need for ADA Lawsuit Solution to New Attorney General

CUNA wrote to newly-confirmed U.S. Attorney General William Barr Tuesday to call attention to the legal threats facing credit unions due to uncertainty with how the Americans With Disabilities Act (ADA) applies to Web sites. Due to a lack of specific guidance, credit unions around the country have been hit with frivolous lawsuits claiming non-compliance with the ADA.

Governor to Sign Paid Family Leave Expansion Today

Governor Phil Murphy will be at the JFK Library in Piscataway this morning where he will sign into law legislation to expand the state’s paid family leave law. The legislation (A3975) expands leave times, provides higher compensation to those taking leave, covers more family members, expands job protections and boosts awareness of the program.

FHFA Should Continue Partnerships Between CUs, FHLBs, GSEs

Credit unions play an important role in the housing finance market, and have a vested interest in the ongoing stability of the secondary mortgage market that the next director of the Federal Housing Finance Agency (FHFA) will help oversee, CUNA wrote to the Senate Banking Committee Thursday. The committee heard testimony from several presidential nominees Thursday, including from Mark Calabria, current chief economist to Vice President Mike Pence and nominee to serve as director of the FHFA.

Settlement Proposed in Wendy’s Data Breach Lawsuit

A proposed settlement was submitted to the court in First Choice Federal Credit Union v. The Wendy's Company for approval Wednesday, which would conclude the data breach lawsuit from a 2016 data breach at certain Wendy’s franchise locations. CUNA, state leagues, and a number of credit unions are among the plaintiffs.

Access to Financial Services is Vital for Cannabusinesses, CUNA Witness Testifies

Allowing legal, cannabis-based businesses to receive mainstream financial services comes with challenges, but also community benefits, CUNA witness Rachel Pross told a House subcommittee Wednesday. Pross, chief risk officer at Maps CU, Salem, Ore., testified before the House Financial Services subcommittee on consumer protection and financial institutions on access to financial services in places where cannabis is legal.

Votes on Government-Funding Package Imminent as Deadline Approaches

The U.S. Senate and House could vote as soon as today on a package to fund nine federal departments and avoid another partial government shutdown. Leaders from the Democratic-controlled House and Republican-controlled Senate announced the bipartisan deal earlier this week. While President Trump has given no indication one way or another, he is expected to sign it.

Congressman Kim to Hold Town Hall Meeting Saturday

Congressman Andy Kim (D-3) will hold a town hall meeting Saturday in Toms River to report on his first month in Congress. He will discuss efforts to lower prescription drug prices, protect Social Security and Medicare, and establish constituent service programs in both Washington and in New Jersey.

Sen. Booker Announces Leadership Changes in Senate Office

U.S. Sen. Cory Booker (D-NJ) announced Tuesday leadership changes in his Senate office. Tricia Russell will be chief of staff, Nicole Morse will be deputy chief of staff for administration, Kristin Lynch will be communications director, and Jane Wiesenberg will be director of scheduling. The changes are effective immediately.

CUNA Witness to Appear Before HFSC Subcommittee Today

CUNA witness Rachel Pross will talk about the challenges facing legal cannabis-based businesses and financial institutions in those communities Wednesday before the House Financial Services subcommittee (HFSC) on consumer protection and financial institutions. The hearing is scheduled to begin at 2 p.m., and live video will be streamed on the committee’s Web site.

Bill to Rescind SALT Deduction Cap, Introduced by Sen. Menendez and Rep. Pascrell

U.S. Sen. Bob Menendez (D-NJ) and U.S. Rep. Bill Pascrell, Jr. (D-9), senior members of the tax-writing Senate Finance and House Ways and Means committees, unveiled a bipartisan, bicameral bill to repeal the federal cap on state and local tax (SALT) deductions, imposed by the Trump Tax Law of 2017. With the beginning of tax-filing season underway, many taxpayers—especially in higher cost states like New Jersey—are just now realizing that they owe significantly more on their taxes as a result of the SALT cap.

CUNA Witness Testifies this Week, As Do NCUA, FHFA Nominees

CUNA will have a witness testifying on its behalf before a House subcommittee Wednesday and will be closely engaged with NCUA and Federal Housing Finance Administration nominees before a Senate committee Thursday. CUNA also continues to monitor negotiations for funding the federal government past Feb. 15, when it lapses.

Nussle Op-Ed Points Out Hypocrisy of Bank Attacks on Tax Status, Mergers

The latest bank attacks on credit unions have a new level of hypocrisy previously unseen in the financial services sector, CUNA President/CEO Jim Nussle wrote in Credit Union Journal Friday. Responding to attacks on the tax status and emergency mergers by the big banks, Nussle pointed out the $21 billion windfall banks saw in 2018, and the recently announced merger that would create the sixth largest bank in the country.

Education on ‘The CU Difference’ Lays Foundation for Advocacy Work

By educating credit union members, they can in turn ensure policymakers know about the credit union difference, CUNA Chief Political Officer Richard Gose said Friday during a webinar on CUNA’s Member Activation Program (MAP). MAP allows credit unions to reach out to their members on certain campaigns, and CUNA launched its latest campaign on the credit union difference in January.

Congress Wrestles to Avoid Another Government Shutdown, NCUA Nominees under Consideration, CUNA to Testify at Cannabusiness Hearing

The short-term funding bill that ended the recent partial government shutdown is set to expire at midnight Friday. The House and Senate are expected to consider a longer-term funding solution this week to avoid another shutdown, though there are reports that the two parties are still in disagreement over some aspects, which could prevent a compromise from being reached. As Congress considers potential funding compromises, CUNA is working to ensure credit union priorities, such as full funding for the NCUA's Community Development Revolving Loan Fund (CDRLF), Treasury's Community Development Financial Institutions (CDFI) Fund and the Small Business Administration's (SBA) 7(a) and 504 loan programs, are included.

Treasury and IRS Issue Interim Guidance on Executive Compensation Excise Tax; Impacts CU Executive Pay

On December 31, 2018, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2019-09 providing comprehensive interim guidance under section 4960 of the Internal Revenue Code to assist tax exempt organizations to comply with the new excise tax that was part of the Tax Cuts and Jobs Act passed by Congress and signed into law by President Donald Trump in December 2017.

Sen. Booker Names New State Director

U.S. Sen. Cory Booker (D-NJ) announced Hanna Mori has taken over as his state director, replacing George Helmy who left to become Gov. Phil Murphy’s new chief of staff. A veteran Booker administration staffer, Mori most recently served as the deputy state director. Zachary McCue has been promoted from projects director to replace Mori as deputy state director.

Restaurant Chain Hit by 18-Month Data Breach

Restaurant chain Huddle House has notified consumers of a breach to its point-of-sale (POS) system, which likely impacted 341 locations between over an 18-month period from August 2017 to February 1, 2019. The company said that malware was installed on POS systems to collect payment information, including cardholder name, card number and expiration date.

Sen. Booker Announces Presidential Bid

U.S. Sen. Cory Booker (D-NJ) chose today, the first day of Black History Month, to make his long-anticipated announcement that he is running for president. He joins a growing list of candidates for the 2020 Democratic nomination.

HFSC Sub-committees Assignments Approved, Rules Adopted

The House Financial Services Committee (HFSC) yesterday approved rules for the panel and membership to its various sub-committees. Committee Chairwoman Maxine Waters (D-CA) in her opening remarks noted that there is a new sub-committee, as well as name changes to some, as the committee hones its focus on initiatives that benefit consumers, small businesses and the economy as a whole, among others.

Senator Singer Visits First Atlantic FCU

EATONTOWN, N.J. – State Sen. Bob Singer (R-30) visited First Atlantic FCU Tuesday. NJCUL President/CEO David Frankil and Vice President of Corporate and Governmental Affairs Chris Abeel were on-hand for the meeting hosted by First Atlantic President/CEO John Culp and Board Chair Dr. Deborah Frank.

House Financial Services Committee to Hold First Meeting Today

The House Financial Services Committee (HFSC) will hold its first meeting of the 116th Congress today to adopt a resolution related to its governing rules and another one to name majority and minority committee members to sub-committees. HFSC member from New Jersey Rep. Josh Gottheimer (D-5) will serve on the following sub-committees: Investor Protection, Entrepreneurship and Capital Markets; National Security, International Development and Monetary Policy, and; Diversity and Inclusion.

House Resolution Encourages FIs to Provide Solutions for Those Affected by Shutdown

The U.S. House of Representatives Tuesday passed H. Res. 77, expressing the sense of Congress that “financial institutions and other companies should work proactively with their customers affected by the shutdown of the Federal Government who may be facing short-term financial hardship and long-term damage to their creditworthiness through no fault of their own.”

$15 Minimum Wage Bills on Fast Track

Legislation to increase the state’s minimum wage to $15 per hour for all but a few worker categories passed the Assembly Appropriations Committee Monday along partisan lines. The measure was approved last week by the Assembly Labor Committee, also along partisan lines.

Lawmakers Seek Housing Finance Reform Details

House Financial Services Committee Chairwoman Maxine Waters (D-CA) and Senate Banking Committee Ranking Member Sherrod Brown (D-OH) are asking the administration for its housing finance reform plan following comments from Federal Housing Finance Agency (FHFA) Acting Director Joseph Otting.

$15 Minimum Wage Scheduled for Assembly Committee Action Today

Legislation to increase the state’s minimum wage to $15 per hour for all but a few worker categories is scheduled for consideration in the Assembly Appropriations Committee today where it is expected to pass. The measure was approved Thursday by the Assembly Labor Committee, where the vote (6 to 3) was along partisan lines.

FHFA indicates housing finance reform coming soon

According to a story in Politico, Federal Housing Finance Agency (FHFA) Acting Director Joseph Otting recently told staff to expect a housing finance reform plan from the administration and Treasury Department within the next month. After that, Otting said he expects significant progress to be made within "six to 18 months."

Congress Continued to Hear about CUs’ Support During Shutdown

Credit unions in every state, congressional district and community stepped up to help workers affected by the government shutdown, CUNA has told Members of Congress in weekly communications throughout the shutdown. Using information that credit unions are sharing with CUNA, the shutdown assistance page is helping to reinforce the "people helping people" philosophy at the core of the credit union makeup.

CUNA, NJCUL Respond to Senate Banking Committee Members’ Request for CU Services During Shutdown

CUNA sent information on credit union assistance efforts for members affected by the government shutdown to a group of five senators Thursday. Sens. Robert Menendez (D-NJ), Brian Schatz (D-HI), Chris Van Hollen (D-MD), Catherine Cortez Masto (D-NV) and Kyrsten Sinema (D-AZ), all members of the Senate Banking Committee, reached out to credit unions and other financial institutions Thursday seeking information about how federal workers are getting assistance. The NJCUL also responded individually to Sen. Menendez’s office to highlight the assistance New Jersey credit unions are offering.

CUNA, MCUL Defend CUs Against Frivolous ADA Lawsuits

CUNA and the Michigan Credit Union League (MCUL) filed two amicus briefs Tuesday in support of credit unions hit with frivolous lawsuits claiming violations of the Americans with Disabilities Act (ADA). CUNA and the MCUL filed briefs in the Sixth Circuit Court of Appeals in support of two credit unions both of which are being sued by the same plaintiff.

CUNA Shares CU Shutdown Aid with HFSC Chair Maxine Waters

Without having been asked by the government, credit unions are doing the right thing and assisting the federal workers furloughed by the federal government shutdown, CUNA wrote to Rep. Maxine Waters (D-Calif.) Wednesday. Waters, chair of the House Financial Services Committee, reached out to CUNA for information on how credit unions are assisting those affected by the federal government shutdown.

CUNA, Leagues Continue to Urge Credit Unions to Share Special Government-Shutdown Assistance; Six NJ CUs Have Reported Assistance

As the partial government shutdown enters its second month, CUNA and the state leagues continue to encourage credit unions to share how their institution is supporting members affected by the partial government shutdown, the longest in history and now headed into its second month. Here in New Jersey six credit unions have shared what they’re doing to help members, Aspire FCU, Essex County Teachers FCU, Federal Employees (Newark) FCU, Fort Dix FCU, South Jersey FCU, and XCEL FCU. Alloya Corporate FCU is also offering special loans to credit unions providing assistance to impacted federal workers.

Rodney Hood Re-nominated to NCUA Board

President Donald Trump Wednesday nominated former NCUA board member Rodney Hood to fill the board seat currently held by board member Rick Metsger. Hood was nominated in the last Congress but not confirmed, and previously served as vice chair of the NCUA board under President George W. Bush.

Supreme Court Declines to Hear CFPB's Structure Challenge

The U.S. Supreme Court has denied certiorari to a lawsuit challenging the single-director structure of Consumer Financial Protection Bureau (CFPB). CUNA and the state leagues have been advocating on Capitol Hill for a commission structure at the CFPB to ensure long term continuity and stability in its policymaking.

House Poised to Vote on Stopgap Funding Options

The House is poised to vote this week on two short-term spending bills that would reopen the various departments and agencies affected by the ongoing partial government shutdown. One of the bills, expected to be voted on today, would fund the government through Feb. 1, while the other would fund it through Feb. 28.

Nussle Talks 2019 Goals, CUNA GAC and More on Podcast

CUNA President/CEO Jim Nussle appeared as the inaugural guest on “The CUInsight Experience,” a podcast featuring thought leaders from around the credit union community. Nussle shared the latest on CUNA’s advocacy efforts, including 2018 victories and goals for 2019, and discussed his view of CUNA’s role in the credit union system, among other topics.

FHFA Nomination Sent to Senate

Mark Calabria, chief economist for Vice President Mike Pence, has been nominated to lead the Federal Housing Finance Agency (FHFA). Ensuring credit unions have access to a viable secondary mortgage market is a top priority for CUNA and the state leagues.

NJCUL-Supported Financial Education Mandate Signed into Law

Lt. Gov. Sheila Oliver last week signed legislation (A-1414) requiring school districts to provide financial literacy education to middle school students in grades six through eight. The financial literacy instruction will emphasize budgeting, saving, credit, debt, insurance, investment, and other issues associated with personal financial responsibility to ensure New Jersey’s youth have access to the tools and foundation needed for sound financial decision-making.

CU-friendly Provisions Called for in Government Funding Legislation

CUNA wrote to leadership of the House and Senate Appropriations Committees Monday to call for inclusion of House-reported language that contains credit union-friendly provisions in any final appropriations legislation for fiscal year 2019. The House and Senate are in Washington, DC this week and are expected to continue negotiations to fund the government through the end of the fiscal year.

Credit unions see victory with ADA ruling

WASHINGTON – The Fourth Circuit of Appeals has ruled in favor of Department of Labor Federal Credit Union (DOL FCU) related to a frivolous lawsuit alleging Web site non-compliance with the Americans with Disabilities Act (ADA). A panel of federal appeals court judges determined the plaintiff lacked standing.

Comments on NCUA bylaws, fidelity bonds proposals due in January

This month, both the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA) have comment deadlines for proposed rules. The NCUA proposals involve bylaws and fidelity bonds, while the FHFA proposal deals with amendments to Federal Home Loan Bank (FHLB) housing goals. CUNA will be submitting comments on each proposal.

House passes bill with CUNA-backed UBIT repeal

The House passed the Retirement, Savings, and Other Tax Relief Act (H.R. 88) Thursday, a bill that makes a CUNA-backed change to Unrelated Business Income Tax (UBIT). H.R. 88 contains a provision that would eliminate the new UBIT on not-for-profit transportation and athletic facilities fringe benefits.

CUNA, Leagues Back CU in ADA Case with Appellate Level Brief

CUNA joined the Illinois and Wisconsin Credit Union Leagues to file a brief Thursday in the U.S. Court of Appeals for the 7th Circuit in support of a credit union facing a lawsuit due to uncertainty with the Americans with Disabilities Act (ADA). The brief is the latest in CUNA/league advocacy efforts to defend credit unions, and the second one filed at the appellate level, which would provide binding precedent in the 7th circuit.

2019 Advocacy Agenda to Continue Advancement of CU Movement

CUNA and the state leagues advocacy agenda for 2019 reflects the needs of the credit union movement and the realities of the 2018 mid-term election results. As the 116th Congress convenes and new leadership takes over at federal regulators including the Consumer Financial Protection Bureau (CFPB), and later the National Credit Union Administration (NCUA), CUNA Chief Advocacy officer Ryan Donovan said the CUNA/league system is eager to continue its work for and alongside the credit union movement.

2018 Victories Set Up CU Momentum Going Forward

CUNA and the state leagues came into 2018 with a bold advocacy agenda and saw historic victories as a result of unparalleled engagement and 360-degree advocacy. Execution of this agenda in the legislative, regulatory and judicial arenas helped ensure credit unions and their members are well-positioned going into 2019.

CUNA Engaged with Government Funding, H.R. 88, Housing Finance Reform

CUNA is engaged with several happenings on Capitol Hill this week, including ongoing discussions to fund the federal government and the National Flood Insurance Program. Both are expected to expire at midnight Friday, and the House and Senate are expected to work this week on an agreement to fund government operations through all or part of remainder of fiscal year 2018.

Final Legislative Week on Capitol Hill

In the final scheduled week of the legislative calendar, Congress will need to pass a government funding bill to prevent a partial government shutdown and extend the National Flood Insurance Program (NFIP) before it lapses. Both are set to expire Friday. As of this writing, the Administration and legislative leaders have yet to reach an agreement on boarder security funding so a partial shut-down is possible.

Mark Calabria Nominated to Head FHFA

President Donald Trump Tuesday announced his intent to nominate Mark Calabria to succeed Mel Watt as head the Federal Housing Finance Agency (FHFA). Watt, who recently faced allegations involving his alleged conduct while at the agency, is set to depart in January.

CECL ‘Inappropriate’ for CUs and Future Relief Needed, CUNA Writes Sub-committee

"Application of the Current Expected Credit Losses (CECL) standard to credit unions continues to be inappropriate," CUNA wrote to the House Financial Services sub-committee on financial institutions and consumer credit Tuesday. The sub-committee conducted a hearing yesterday on the impact of the standard, which was set forth by the Financial Accounting Standards Board (FASB).

BCFP follows CUNA recommendation with ‘no-action’ letter proposal

The Bureau of Consumer Financial Protection (BCFP) will issue a proposal to revise its current “No-Action” letter policy following CUNA efforts to have the Bureau amend to provide clarity regarding enforcement and supervision expectations. The proposal will have a 60-day comment period after it is published in the Federal Register, which is expected soon.

CUNA calls for not-for-profit excise tax parity from Treasury

CUNA wrote to the Treasury Monday to call for parity for executive compensation at not-for-profit employers, agreeing with a recent letter sent by the American Society of Association Executives (ASAE) that called on the Treasury to provide parity between for-profit and not-for-profit organizations by grandfathering not-for-profit employer contracts in effect on or before Nov. 2, 2017.

CUNA engaged with CECL hearing, H.R. 88 consideration this week

CUNA will be engaged with several hearings in both chambers of Congress this week, including one on the impact of the Financial Accounting Standards Board’s (FASB) current expected credit loss (CECL) standard. The House and Senate are both in session this week, and could vote on a farm bill, as well as a tax bill that contains two CUNA-supported extensions of expired tax provisions, H.R. 88.

Mulvaney Thanked for BCFP Tenure, CUNA Renews Call for Commission

CUNA wrote to Bureau of Consumer Financial Protection (BCFP) Acting Director Mick Mulvaney Thursday to thank him for his service during the 13 months he served as acting director for the agency. Kathy Kraninger was confirmed by the Senate to become bureau director Thursday; Mulvaney will continue his duties as director of the Office of Management and Budget.

BCFP Director Vote Today

The Senate will vote today on the nomination of Kathy Kraninger to lead the Bureau of Consumer Financial Protection (BCFP). Kraninger was nominated to replace Acting Director Mick Mulvaney and was approved by the Senate Banking Committee in August.

CUNA, Leagues, CUs Talk ADA Concerns at DOJ Roundtable

CUNA, leagues and credit unions participated in a Department of Justice (DOJ) roundtable Monday to discuss topics related to the Americans with Disabilities Act (ADA). Credit unions in more than 30 states are facing lawsuits due to ambiguity about how the ADA applies to Web site, and CUNA has made finding a solution a top priority.

House Republicans Name Ranking Members for 116th Congress

The House Republican Conference chose ranking members for House committees in the 116th Congress last week, with several credit union supporters being named ranking members of notable committees. With Democrats taking control of the House for the next Congress, Democratic lawmakers will chair all House committees, with Republicans serving as ranking members.

BCFP Nomination Moves Closer to Final Vote

The Senate voted 50-49 to end debate on the nomination of Kathy Kraninger to lead the Bureau of Consumer Financial Protection (BCFP) Thursday, setting up a final vote on the nomination in the coming days. Kraninger was nominated to replace Acting Director Mick Mulvaney. The Senate Banking Committee approved her nomination in August.

NFIP Extension Passes Congress

Both the House and Senate passed a bill Thursday to extend the National Flood Insurance Program (NFIP) until Dec. 7. The program was set to expire at midnight tonight if the extension wasn't passed.

Needed BSA/AML Relief Outlined for Senate Committee

CUNA and the state leagues support efforts to track money laundering and terrorist financing but also believe it's important to strike the balance between the costs to financial institutions and the benefits to the federal government. CUNA sent a letter for the record of a Senate Banking Committee hearing on combating illicit finance.

BCFP Director Confirmation Expected

The Senate could vote on the nomination of Kathy Kraninger to lead the Bureau of Consumer Financial Protection (BCFP). Kraninger currently serves as an associate director at the Office of Management and Budget (OMB). President Donald Trump nominated her in June to lead the Bureau.

CUNA Calls for CU Relief Changes in New Tax Bill

CUNA raised concerns with several taxes contained in the Tax Cuts and Jobs Act in a Tuesday letter to Capitol Hill lawmakers. The letter was sent to Sen. Orrin Hatch (R-Utah), Sen. Ron Wyden (D-Ore.), Rep. Kevin Brady (R-Texas) and Rep. Richard Neal (D-Mass.) in response to Monday night’s release of the Retirement, Savings and Other Tax Relief Act of 2018 (H.R. 88).

Bowman Sworn into Fed

Former Kansas Bank Commissioner Michelle Bowman was sworn-in Monday to serve on the Federal Reserve Board. Bowman is the first Fed governor to fill a spot designated for someone with community banking experience.

Marijuana Legalization Clears Joint-Committee

Legislation (S2703) that would legalize recreational use marijuana in New Jersey gained the approval of the Senate Budget and Appropriations Committee and the Assembly Appropriations Committee during a joint hearing Monday. The joint-committee voted seven to four in the Senate and six to three in the Assembly in support of the legalization, taxation and regulation of small amounts of marijuana for adults 21 years and older.

CUNA Urges OCC to Ensure CUs Remain Out of CRA

CUNA advocated against efforts to have the Office of the Comptroller of the Currency (OCC) recommend that the Community Reinvestment Act be expanded to apply to credit unions in a letter written Tuesday. CUNA responded to an advanced notice of proposed rulemaking from the OCC on reforming the CRA regulatory framework.

BCFP Confirmation Vote Set for Next Week

Senate Majority Leader Mitch McConnell (R-KY) filed cloture Thursday on several nominations, including Kathy Kraninger to lead the Bureau of Consumer Financial Protection (BCFP), setting up a Senate vote on confirmation for the week after Thanksgiving.

CUNA approves of strong GSE capital reqs, has impact concerns

CUNA welcomes the Federal Housing Finance Agency’s (FHFA) efforts to adopt strong capital requirements, but has concerns about the lack of analysis of the impact on the cost of conventional mortgage credit in the primary market. CUNA filed a comment letter with FHFA Thursday in response to a proposed rule on capital requirements for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

CUNA Continues Work to Fix Excise Tax Disparity in TCJA

CUNA is continuing its advocacy with lawmakers to secure a fix for an excise tax contained in the Tax Cuts and Jobs Act of 2017 (TCJA). The new law requires tax-exempt entities to pay a 21% excise tax on the five highest-paid employees’ compensation that individually exceed $1 million annually, effective Jan. 1, 2018.

NTIA Should ‘Seriously Consider’ CU Data Security Priorities

Credit unions have a long history of safeguarding information and are subject to numerous requirements, unlike others that use or maintain consumer information, CUNA wrote to the National Telecommunications and Information Administration (NTIA) Friday. CUNA sent its comments in response to a request for comment on developing an administration policy for consumer data privacy.

Jersey City Payroll Tax Advances

The Jersey City Council introduced the payroll tax ordinance by a 7-0-1 vote. Wednesday's 90-minute hearing was the first time the council heard from the public on the proposed payroll tax, which would amount to one percent on any business's total non-resident payroll. The wages of Jersey City residents would be exempt. The council is expected to hold a final vote on the plan by the end of the year. All the money would be set aside for schools.

CUNA election whitepaper highlights election’s impact on CUs

Despite the divided Congress that will take office in January, CUNA, leagues and credit unions are well-positioned in a challenging legislative environment, CUNA noted in its post-election whitepaper, released Thursday. Titled “Credit Union-Friendly Majority in a Divided Congress,” the paper provides a comprehensive breakdown of credit union involvement in the election, what the results mean and CUNA’s plans for the 116th Congress.

CUNA’s Nussle, Donovan, Gose talk post-election picture for CUs

"Credit unions are well positioned after Tuesday’s election into the 116th Congress," CUNA President/CEO Jim Nussle said during CUNA’s post-election webinar Thursday. Nussle was joined by Chief Advocacy Officer Ryan Donovan and Chief Political Officer Richard Gose to break down the election results, which can also be found in great detail in CUNA’s post-election whitepaper.

Congressman-Elect Jeff Van Drew at Rider University on Monday

Congressman-elect Jeff Van Drew will be the guest speaker at Rider University’s Rebovich Institute of Politics on Monday, November 12. The event is free and open to the public. NJCUL Vice President of Corporate and Governmental Affairs will be in attendance. Interested credit union advocates are encouraged to attend as well. Please contact Chris Abeel for additional information and registration, or feel free to register directly here.

Ten State Legislative Vacancies Decided Tuesday

New Jersey state legislative elections are held in even years but Tuesday there were ten special legislative elections, one for the state Senate and nine for the Assembly. These were essentially ratifications of the local Democratic parties’ choices to fill seats that had been vacated over the last year.