As efforts move forward to merge CUNA and NAFCU into “America’s Credit Unions,” one of the most exciting prospects is how this change could create opportunity for an even greater advocacy impact for credit unions across the country. Working together with Leagues, allies, and the thousands of credit union advocates across the country could bring an even stronger voice for the credit union industry on both the federal and state level.
A vote on the potential merger is the first step. As we address this transformation opportunity as an industry, our organization remains laser focused on credit union needs and advocacy priorities with lawmakers and policy makers. If you have any questions about the merger, visit the CUNA website. You can also view the announcement video there.
This week in Congress.
The U.S. Senate and House of Representatives are in recess for the month of August. The Senate will resume legislative activity the week of September 4, 2023. The House will return the week of September 11, 2023.
This is a terrific opportunity to weigh in on key legislative issues with your federal lawmakers in- district. CUNA has resources specific to interchange and an Advocacy Priorities One-Pager that gives an overview of legislation and issues at hand.
Credit Unions play a major role in CDIF funding
The CDFI Fund’s Community Development Advisory Board adopted its Final and Approved CDFI Certification Recommendations on July 31. The board’s memorandum echoes concerns and recommendations jointly submitted by CUNA and NAFCU in advance of the meeting. CUNA President/CEO Jim Nussle and NAFCU President/CEO Dan Berger released a joint statement emphasizing appreciation for the Board's recommendations and the Fund's consideration of input in the finalization of the application. The statement includes, in part: “The value and reputation of the CDFI Certification is of critical importance to credit unions that hold it and to the communities they serve. CUNA and NAFCU applaud the CDFI Fund’s goal to protect the certification and the work the Fund has done in support of this goal. We hope that the recommendations provided by the Community Development Advisory Board, CUNA, NAFCU, and others will be adopted by the Fund as it moves towards finalization of its application. CUNA and NAFCU are pleased to have the opportunity to support the Fund’s efforts through submission of our concerns and recommendations. We look forward to continuing our support of the Fund on the Hill and partnering with the Fund to support its mission.”
NCUA to host webinar on CU League partnerships.
The NCUA is hosting a webinar Aug. 24 to discuss the benefits of partnerships throughout the credit union industry, including among credit unions, their leagues, and the agency. Representatives from the MD/DC Credit Union Association, GoWest Credit Union Association, Illinois Credit Union League, and Cornerstone League will engage in conversation with NCUA representatives and discuss several issues, including how the NCUA and leagues can collaborate, the top concerns of credit unions, and the resources available to support them. Details and registration can be found here.
Other issues you should be aware of.
PayPal announced the launch of a U.S. dollar-denominated stablecoin – PayPal USD – noting that fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments. In the coming weeks, eligible PayPal customers in the U.S. who purchase PayPal USD will be able to use the stablecoins to transfer funds to external wallets, send person-to-person payments, fund purchases, and convert any of PayPal’s supported cryptocurrencies to and from PayPal USD. In addition, the Federal Reserve outlined its expectations for banks engaging in stablecoin-related activities, among other novel activities. The Fed acknowledged “the benefits of financial innovation” while also ensuring there are appropriate safeguards in place.
Moody downgrades regional banks.
Moody’s Investors Service, a credit rating agency, downgraded 10 regional U.S. banks and advised several other large lenders that they are under review. The agency said, "Many banks' second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital,” and added, “a mild U.S. recession is on the horizon for early 2024 and asset quality looks set to decline, with particular risks in some banks’ commercial real estate (CRE) portfolios.”
CFPB analyzes reverse mortgage advertising trends.
The CFPB released a data spotlight analyzing reverse mortgage direct mail advertising trends as “these products can be expensive and risky for older adults.” A reverse mortgage is a product that allows homeowners aged 62 or older to turn their equity into cash or a line of credit while not requiring them to make monthly mortgage payments. The report highlights that:
Please contact Jeff Olson or Amy Kleinschmit with any advocacy questions.
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