Michigan Credit Union League Home » Governmental Affairs » Grassroots Advocacy » Action Alerts » Call to Action - CURIA

Information Central Resources CURIA Overview CURIA - Summary of Major Changes H.R. 1537, CURIA Section-by-Section Analysis CURIA’s Capital and Net Worth Reform Provision Summary: CURIA's Economic Growth Provisions Michigan Congressional Delegation Contacts Take Action Now!

MI CREDIT UNIONS' CALL TO ACTION

DATE: March 20, 2007

TO: Credit Union CEOs, MCUL Chapter Chairs, Board of Directors and Government Affairs Committee

FROM: Patrick La Pine, MCUL Executive Vice President

RE: CURIA Introduced

BACKGROUND:
On Friday, March 16, Representatives Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) introduced the 2007 Credit Union Regulatory Improvements Act (CURIA, H.R. 1537). The new bill is similar to the 2006 version, but with the addition of two key provisions: One addressing field of membership rules, the other establishing additional consumer safeguards in the event of a credit union conversion to another form of financial institution.

Last session, CURIA drew the support of a total of 126 co-sponsors from both political parties, including nine from Michigan: Reps Camp, Conyers, Hoekstra, Kildee, Kilpatrick, Levin, McCotter, Stupak and Upton. As introduced, H.R. 1537 would in part:

• Incorporate the NCUA’s prompt corrective action (PCA) reform/risk-based capital proposal to modernize net worth standards, thus freeing up additional capital for credit unions to provide their members with better and more affordable services; and
  
  
• Increase the current cap on loans to members for business purposes (MBLs) from 12.25% to 20% of assets, allowing credit unions to assist more members start and expand small businesses and to promote economic growth. The bill would also exempt loans under $100,000 and those to nonprofit religious organizations from the MBL calculation.

The new provisions would:

• Establish additional consumer safeguards to ensure even greater participation and transparency in the process of converting credit unions to another type of financial institution, including the requirement that at least 30% of a credit union's members participate in any vote to convert to a mutual savings bank; and
  
  
• Clarify the 1998 Credit Union Membership Access Act to allow all credit unions, regardless of charter type, to serve those in underserved areas. The bill would also update the definition of an underserved area, incorporating definitions from the Community Development Financial Institutions Act and the New Markets Tax Credit.

Other provisions of the 2006 CURIA legislation were broken out and included in the recently enacted Financial Institutions Regulatory Relief Act, which increased general loan maturity limits to 15 years for federal credit unions, as well as allows them to provide certain services to nonmembers.

The bankers are already mounting fierce opposition to the new CURIA on Capitol Hill. The more
co-sponsors we can get to either re-sign onto CURIA or sign on for the first time, the greater impact there will be to move this legislation forward.  

ACTION NEEDED:
Contact your Representative(s) and ask them to co-sponsor HR 1537. Key messages to deliver:

• Credit unions are the most highly regulated of all insured financial institutions.
• CURIA, particularly PCA reform, is important to credit unions.
• By updating the law, CURIA would give credit unions more flexibility in serving their members, without sacrificing safety and soundness.
• Explain how CURIA will benefit consumers, small businesses and most of all your credit union.

Click here to send your Member an e-mail including talking points.

If you have any questions, please feel free to contact me at 1-800-262-6285, extension 485 or pwl@mcul.org or MCUL Legislative Affairs Director Andrew Doerr at extension 465 or ahd@mcul.org.