by Chesney Garnos, Director of Political & Grassroots Affairs
A Win for Credit Unions
We hope you’ve heard the news…but if you haven’t – here it is! Credit unions are now protected by a nationwide injunction preventing implementation of the Consumer Financial Protection Bureau's (CFPB) Section 1071 Small Business Lending Data Collection Rule. You can read the final rule here on section 1071 of the Dodd-Frank Act.
What does this mean? This rule would require credit unions to collect and report specific data on applications for credit for women-owned, minority-owned, and small businesses, is stayed for all covered financial institutions.
Who made this possible? Relief for credit unions was only possible with quick action from CUNA, the Cornerstone League, and Rally Credit Union earlier this year. In August, these individuals filed a motion to intervene because credit unions were not included in this rule.
A New Speaker has been elected to lead the House. What does this mean for credit unions?
Representative Mike Johnson of Louisiana has been elected as the new Speaker of the House. If you had asked individuals a week ago if they saw this announcement coming, many spectators would have said no.
Speaker Johnson is a credit union member and has supported various credit union legislation since he was elected. Johnson was one of the original co-sponsors of the Credit Union Modernization Act. This act was first introduced in 2022. CUNA President/CEO Jim Nussle shared, “We congratulate Rep. Johnson on his election to speaker, and as a credit union member and previous supporter of our legislation, we look forward to working with him on important credit union priorities.”
Not only has Speaker Johnson served as a supporter of credit unions at the national level, but he has also been active in state credit union issues in Louisiana. Louisiana Credit Union League President/CEO Juan Fernandez shared, “Representative Mike Johnson has consistently championed credit unions, both nationally and in his home state of Louisiana. As a devoted and proud member of his Louisiana credit union for many years, he has remained steadfast in his commitment to advancing the credit union movement.”
Hopefully, this appointment means more transparent water for Congress and credit union legislation.
Debit Card Interchange Concerns.
Last week, the Federal Reserve proposed a debit interchange cap proposal that would impact credit union members. CUNA and our team at the Dakota Credit Union Association strongly oppose implementing changes to the current interchange system and sent a joint letter to the feds on this topic.
What would the proposal do? There are two significant components that this proposal would influence:
There are 90 days following this publication to make comments on the proposal. If you would like to weigh in on the topic, you are welcome to share your thoughts directly with the Federal Register or send them to my email so I can share them.
Senator Mike Rounds takes a stance in support of credit unions.
U.S. Senator Mike Rounds (R-S.D.), a member of the Senate Committee on Banking, Housing, and Urban Affairs, recently weighed in on President Biden’s NCUA nominee last week. You can view the entire hearing here and a brief recap is provided below.
Senator Mike Rounds shared during the hearing: “In the upper Midwest, producers rely on access to credit from their local credit unions and other financial institutions for the financing of their farming and ranching operations. We don’t need bureaucrats telling farmers, ranchers, and the credit unions that support them how to run operations. Especially bureaucrats that believe chocolate milk comes from brown cows.”
Rounds’ statement in the hearing is promising, showing support for credit unions and credit union members. During the hearing, he also had the opportunity to use questions our team at Dakota Credit Union Association helped prepare for the NCUA nomination.
Senator John Thune, Credit Unions, and Robocalls.
Senator Thune is a ranking member of the Senate Committee on Commerce, Science, and Transportation Subcommittee on Communications, Media, and Broadband. Last week, the committee held a hearing on robocalls. CUNA and our team at DakCU weighed in on the issue by sending a letter to Senator Thune. The letter outlined essential issues on how robocalls impact credit union members. The letter addressed two significant components:
South Dakota GOP Fundraiser
This past Friday, members of our South Dakota credit unions had the opportunity to mingle with members of the South Dakota GOP. The GOP held their successful clay pigeon fall event, and our credit unions made the most of this opportunity! Though it was a chilly one, Joey Rotert (Black Hills FCU), Chad Moller (Dakotaland FCU), Preston Meline (Levo Credit Union), Jeff Schmidt (Voyage FCU), and Tim Ingalls (CU Mortgage Direct) braved the blustery South Dakota weather with a clay pigeon team. They had a blast and are counting the days until next year’s event. If you run into one of them, ask who shot the best!
Important Dates to Add to Your Calendar:
If you have any legislative or advocacy questions, please reach out to me at email@example.com.
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