Michigan Credit Union League Home » Governmental Affairs » Grassroots Advocacy » Regulatory Relief Model Letter

TO: Credit Union CEO’s, Government Affairs Committee, and Legislative Forum

FROM: Jim Smock, Jr., MCUL Legislative Affairs Manager

SUBJECT: Model letter concerning regulatory relief.

The U.S. Senate & House have each passed regulatory relief bills. The two bill versions differ and rather than proceeding typically to a conference committee to resolve those differences, the Senate & House has decided to compromise by presenting various options between the two chambers.

The following is a model letter that credit union may choose to use when contacting their Members of Congress. Credit unions should contact their Members before they return to session at the end of the July 4 recess.

___________________________________________________________

Dear____________:

I am writing to you to express grave concern and opposition to the initial compromise proposal offered by Representatives Mike Oxley & Barney Frank. I do understand the need to remove the difference between H.R. 3505 and S. 2856 but this proposal only hinders the process.

The above-mentioned proposal would remove all small business lending restrictions by thrift institutions. Presently small business lending is capped at 20% of the institution.

For the credit union industry to support this proposed compromise regulatory relief bill, credit union need to receive parity with thrift institutions on business lending limits. Additionally, I am concerned that Congress is acting inappropriately as it considers expanding thrift business lending within the context of the Senate legislation; this legislation was designed specifically to avoid any disruption of the balance between federal charters and regulators.

Credit unions are not opposing bank/thrift regulatory reform; rather these groups continue to attack credit unions and oppose all credit union regulatory relief.

This relief includes efforts to modestly and reasonably expand credit union business lending restrictions that are more constricting than the restrictions that presently apply to thrifts.

I ask that you stand against this attempted assault on your credit union constituents by opposing this unbalanced compromise proposal.

Very Truly Yours,