WASHINGTON—CUNA last week sent three letters to Washington addressing concerns over the Department of Labor’s (DoL) changes to the Fair Labor Standards Act (FLSA), Federal Housing Finance Agency (FHFA) adjustments to the Uniform Residential Loan Application and the impact of “over-regulation” on CUs, respectively.
In a letter to the House Committee on Education and the Workforce, CUNA President and CEO Jim Nussle pointed out that the DoL’s changes to the FLSA increased the threshold for overtime pay eligibility by approximately double the previous rate, from $23,600 annually to $47,476 annually.
“This final rule will not only create regulatory burdens for credit unions when a disproportional percentage of employees are swept into the new threshold, but it will also create unintended negative consequences for those it aims to help, as well as credit union members. Credit unions in rural and underserved areas, as well as small credit unions, may face even greater compliance and regulatory burdens as a result of the rule.”
The complete letter can be found in CUToday.info’s The gov.
Nussle also sent a letter to the House Subcommittee on Economic Growth thanking the group for holding the hearing, “Bearing the Burden: Over-regulations’ Impact on Small Banks and Rural Communities.”
“The financial impact of regulation on credit unions and their members is high and has increased significantly since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act,” wrote Nussle. “Since the financial crisis, credit unions have been subjected to more than 200 regulatory changes. To determine the impact of financial regulations on credit unions and their members, CUNA, with the support of state credit union leagues, commissioned Cornerstone Advisors to analyze the effects of the Dodd-Frank regulations.”
The letter contains findings from the Cornerstone report, including that the cost of regulatory burden to credit unions in 2014 were “conservatively” $7.2 billion.
For the complete letter go to CUToday.info’s The gov here.
In a joint letter to the FHFA with six other financial industry trade groups, including the ABA and ICBA, CUNA shared concerns over the FHFA and Fannie Mae and Freddie Mac considering a “last-minute” addition to the new Uniform Residential Loan Application (URLA) in the form of a question that will ask borrowers to indicate their language preference.
“While we support a range of efforts to ensure that borrowers are well informed during the mortgage process, the inclusion of such a question on the redesigned form raises several serious compliance and legal concerns that strongly weigh against including it on the form or, at the very least, warrant a full vetting through a notice and comment process before its inclusion,” the trade groups stated.
The complete letter can be found in CUToday.info’s The gov here.