Federal Advocacy Update

Congress leaves town with big wins for credit unions on privacy, liquidity, and member protections.

By DakCU Advocacy Team

As Congress departed Washington for its August recess, they left behind a legacy-defining win for credit unions and more importantly, for the consumers and communities we serve. From landmark privacy protections in mortgage lending to renewed momentum for restoring access to emergency liquidity, this summer has delivered tangible results that will improve the lives of members across the Dakotas and beyond.

Let’s unpack what these victories mean and why they matter so deeply for our rural institutions, our members, and the cooperative values we fight to protect.

Privacy Protection for Mortgage Borrowers: A Victory Years in the Making
On the final day before recess, the U.S. Senate unanimously passed the Homebuyers Privacy Protection Act (H.R. 2808)—a credit union-backed bill aimed squarely at ending the abusive use of mortgage trigger leads. The legislation now awaits the President’s signature.

For years, our credit unions have voiced concern over this practice. When a member applies for a mortgage, a "trigger lead" is generated, and their credit data is sold to a flood of third-party lenders—most of whom have no relationship with the consumer. Members are often bombarded with confusing, misleading, or even predatory offers. The process erodes trust, disrupts the lending experience, and in many cases, leads to borrower confusion or fear.

This legislation changes that. Once enacted, credit reporting agencies will be prohibited from sharing a mortgage applicant’s credit data unless:

• The offer is a firm offer of credit or insurance, and
• The lender has documented consumer consent, or an existing relationship (such as a prior mortgage, current servicing relationship, or active account).

These new protections take effect 180 days after the bill is signed into law.

What This Means for Dakota Credit Unions and Our Members
This bill ensures that when a member applies for a mortgage at a local credit union in Minot, Sioux Falls, Fargo, or Rapid City—they won’t be flooded with unsolicited offers from out-of-state lenders with no connection to them. It safeguards the trusted, relationship-based lending experience that defines our cooperative model.

For small credit unions, where mortgage lending is a vital community service, this law reinforces their ability to compete fairly and protect members’ privacy.
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This is a win for:

• Consumer choice and transparency
• Credit union member retention
• The integrity of the lending process

It’s also a powerful reminder of what can be achieved when credit unions speak with one voice. We extend our sincere thanks to our Dakota congressional delegation for their leadership—and now urge President Trump to sign this important bill into law without delay.

Senator Cramer Champions Liquidity Reform for Small Credit Unions
In another major win, Senator Kevin Cramer (R-ND) has introduced the NCUA Central Liquidity Facility Enhancements Act, a bill that seeks to permanently reinstate reforms to the CLF that were first implemented during the COVID-19 pandemic.

The Central Liquidity Facility (CLF) acts as a critical lifeline, especially for smaller and rural credit unions that lack direct access to the Federal Reserve’s discount window. During times of crisis, it provides emergency cash flow that helps credit unions stay operational and continue serving members.

The pandemic-era reforms allowed corporate credit unions to serve as agent members, expanding access to thousands of smaller institutions. As a result, CLF membership surged from fewer than 300 to over 4,100 credit unions at the height of the crisis. But those provisions expired in 2022, leaving many of our Dakota credit unions locked out.

What Senator Cramer’s Bill Would Do

• Restore the agent-member model, enabling broader participation through corporate credit unions.
• Allow corporate credit unions to borrow directly from the CLF, strengthening overall system resilience.
• Improve access and participation through technical corrections—all without costing taxpayers a dime.

The CLF is fully self-funded through capital contributions by credit unions. This legislation is smart, sustainable policy with no federal price tag.

Why This Matters Here at Home
In North Dakota, more than 80% of credit unions hold less than $250 million in assets. In South Dakota, nearly two-thirds fall into the same category. These institutions are vital to their communities providing not just financial services, but access, education, and economic stability. Yet, they face the highest hurdles when it comes to liquidity options.

This bill would give our credit unions a fair chance to weather the next economic storm. It would empower local lenders, protect member access to financial services, and keep rural economies strong.

Senator Cramer’s leadership reflects a deep understanding of what small, community-based institutions need to thrive, and we call on the rest of the Dakota delegation to co-sponsor and support this legislation. 

You can read our op-ed thanking Senator Cramer here. 

Connecting Policy Wins to Real-World Impact
We often talk about “advocacy wins,” but it’s important to connect those victories to real outcomes. These two bills will:

• Increase trust and satisfaction among members applying for a mortgage.
• Protect credit union-market share in one of the most personal lending experiences.
• Ensure emergency access to liquidity, especially during economic volatility.
• Reinforce rural financial infrastructure, supporting jobs, farms, and local businesses.

This is what it means to lead with both policy and purpose and it’s why DakCU continues to push relentlessly for fair, cooperative, member-driven solutions.

Call to Action: Engage During August Recess
With Congress back in their home districts, now is the time to build on this momentum. We encourage our Dakota credit unions to connect directly with lawmakers:

• Invite them to tour your branches and meet staff and members.
• Share how this policy wins affect your ability to serve and help your members.
• Highlight your work in financial education, community giving, and small business lending.

Face-to-face conversations are the most powerful form of advocacy—and the August recess is our best window to make them happen.

Looking Ahead
These wins remind us of the power of a unified voice and a clear mission. As we celebrate the passage of the Homebuyers Privacy Protection Act and rally behind Senator Cramer’s CLF bill, we also reaffirm our commitment to advancing the cooperative model—not just in Washington, but in every corner of the Dakotas.

Stay Connected
Reach out with any questions or for more details to Jeff Olson or John Alexander.​