The President’s Perspective

​Highlights of GAC; meeting with Senator Cramer focused on homebuyer protection; and Jeff attends House Financial Services subcommittee meeting. 

Mission, vision, and advocacy highlights of GAC.
Relentless advocacy that is forward-thinking, proactive, and responsive will help our industry to stand strong for members in good times and in bad, through economic challenges and external threats, including overreach by regulators and legislators. That was the message throughout the 2024 Governmental Affairs Conference (GAC) last week in Washington, D.C.

Speaking on behalf of America’s Credit Unions board, Board Chair Brian Schools and Vice Chair Lisa Ginter spotlighted the mission and vision of the organization and the role the board will take in executing them. For me personally, it is truly an honor and privilege to a part of this historic moment as a member of the transition board for our new national association and to be part of the official launching this past week.

As the tax-exempt status once again comes into the crosshairs of the bankers’ associations, including the Dakotas, we stand ready to address whatever barriers and attacks are placed in our way. Credit unions have earned our place in the financial services marketplace, and we’ve earned our special tax status.

America’s Credit Unions, along with state leagues, credit unions, and partners, will continue to serve, grow, and thrive through “relentless advocacy” that is forward-thinking, proactive, and responsive. While we continue to stand strong for members in tough economic times, there are existential threats that cannot be ignored, such as increasing overreach by regulators including the CFPB and NCUA, interchange challenges, and more. 

​Jim Nussle, president/CEO of America’s Credit Unions, also addressed the GAC crowd for the first time as the leader of the new national association, promising the organization will fight for and listen to its members. America’s Credit Unions will strengthen our united voices, utilizing hard data to find emerging trends and to preempt attacks. Research has allowed us to quantify what the credit union difference means in actual dollars and cents – and will be used more than ever before to illustrate that credit unions are a better financial services choice for consumers and communities. 

Homebuyer Protection Act is focus of meeting with Senator Cramer. 
I had the opportunity to have an additional meeting with Senator Cramer last week; the focus of our discussion was the abusive mortgage “trigger leads.”
 
Buying a home is stressful enough for many consumers; the last thing most folks want is to be annoyed incessantly by the constant barrage of emails, text messages, and phone calls after they apply for a mortgage. In our conversation, we discussed prospective bills that would put an end to this shady and confusing practice and restore data privacy for homebuyers.
“Trigger leads” exploit consumers' financial inquiries, turning them into commodities sold without consent. Proposed legislation would ensure Dakotans’ right to privacy by preventing credit bureaus from selling their information when a credit report is pulled. It is not unusual for credit union members to receive 100+ calls or texts and misleading emails within the first 24 hours of applying for a home mortgage. We must empower homebuyers, not bombard them with predatory calls. This bipartisan legislation takes a crucial step in safeguarding consumer privacy and choice in the mortgage process.

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CU value-based programs highlighted at House Financial Service Sub-Committee hearing.
I also had the opportunity to attend a House Financial Services subcommittee hearing last Thursday, which was focused on regulatory overreach that is impeding credit unions’ ability to improve the financial wellbeing of members. Congress and regulators must take action to reverse this trend.
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Fellow America’s Credit Unions Transition Board Secretary Karen Harbin (photo right), president/CEO of Commonwealth Credit Union in Frankfort, Kentucky, testified on behalf of America’s Credit Unions about the impact of politicized financial regulations.
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“The regulatory burden on credit unions—whether from the CFPB, Federal Reserve, or even the NCUA—continues to increase,” she said. “Credit unions, including mine, do not boast the massive earnings of big banks, but our impact lies in our genuine commitment to serving communities. We are not here to merely facilitate financial transactions; our goal is to empower, educate and uplift our members, ensuring their financial wellbeing.”

Harbin shared concerns that the CFPB’s overdraft proposal could “inadvertently undermine the ability of smaller financial institutions to offer services that are critical to our members’ financial well-being.”
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The hearing also allowed witnesses to address the Federal Reserve’s debit interchange proposal, which is seriously flawed and based on a selective reading of narrow and incomplete data. Credit unions support the Secure Payments Act, which would delay implementation of the Fed’s proposal until its impact can be studied

Time to register for Summit!
Be sure to register for DakCU’s Annual Summit which is rapidly approaching on May 14 – 16 at the Grand Falls Casino & Golf Resort just south of Sioux Falls. It’s hard to believe we are now just 63 days away from our signature event! If you have been watching the Memo, you know we have revised the format a bit this year, per the feedback we received from previous attendees, to allow more time for networking, a less “tight” schedule with more flexibility, and more training/educational opportunities for credit union board members. We are confident you will find this year’s Summit to be an outstanding event at a beautiful venue, and I hope to see many of you there.
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Have a great week, 

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DakCU President/CEO