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LEGISLATIVE Review Act (H.J.Res.111). A victory for credit unions,
this is the latest example of the strength of the CUNA/
Tax Reform Maintains Credit Unions’ Not-for-Profit league’s advocacy efforts.
Status, Backed by Support of Entire Delegation
The CFPB’s rule, which was finalized in July, was
In the Q4 2017 issue of Contact, we exhibited our met with consistent criticism from CUNA and state
largest victory of the year: obtaining statements of leagues. The rule, which would have restricted arbi-
support regarding the credit union tax status from tration clauses in financial contracts, was another
every member of Michigan’s congressional delegation. case of the CFPB’s umbrella approach to financial
services regulation unfit for the cooperative structure
Leading up to Washington, D.C.’s focus on tax reform, of credit unions.
MCUL, in conjunction with the Credit Union National
Association (CUNA), worked diligently to meet with This repeal will not only put a stop to the CFPB’s
Michigan’s two senators and 14 members of the U.S. current rule, but stops the Bureau from creating a
House of Representatives to discuss the importance similar rule in the future without congressional action.
of maintaining our current tax status. We are very
pleased that every member, through their support, We are very pleased that every
recognizes the importance that credit unions have member [of Michigan’s Congres-
for members and communities. sional delegation] recognizes the
importance that credit unions have
As a result of having support on this issue from all for members and communities.
members of the delegation, the credit union not-for-
profit tax status was not impacted.
House Passes Financial CHOICE Act; Senate Banking
Committee Passes Regulatory Reform Bill
MCUL and credit union advocates across Michigan Removing the NCUA From the Appropriations Process
made significant progress toward achieving meaning-
ful regulatory reform in 2017 when the U.S. House MCUL worked with CUNA to amend and include lan-
of Representatives passed the Financial CHOICE Act guage in the House Financial Services and General
of 2017 in June. The bill included several provisions Government Appropriations Bill that worked to remove
beneficial to credit unions, such as language that the National Credit Union Association (NCUA) from the
would make much needed structural changes to the Appropriations Process: Section 906 of Division D of
Consumer Financial Protection Bureau (CFPB) and H.R.3354. Keeping the NCUA under appropriations
offer relief from certain Home Mortgage Disclosure would have, as CUNA CEO Jim Nussle said, placed a
Act (HMDA) requirements. Following passage by the hidden tax on credit unions and their members.
House, the U.S. Senate Committee on Banking drafted
its own bill which it then passed in early December. Strong Support for the Community Financial
The Committee’s bill also includes pro-credit union Institution Exemption Act
language, such as a provision that would create par-
ity between credit unions and banks when it comes Seven of 14 Michigan House members co-sponsored
to 1-4 non-owner occupied loans. Leadership in the H.R.1264, the Community Financial Institution Exemp-
Senate is expected to bring the bill to the floor for tion Act. These seven members represent the majority
consideration sometime in early 2018. of Michigan’s GOP members. The bill would exempt
credit unions from CFPB rules unless the abuses the
CFPB Arbitration Rule Repeal rule was designed to prevent were being perpetrated
by credit unions.
On Dec. 1, the president signed into law a repeal of
the CFPB’s arbitration rule under the Congressional
FIRST QUARTER 2018 I CONTACT 15
