CEO Letter: New Bill Helps Us Serve Members
JUL. 2, 2018

PNWFCU CEO Tom Griffith meets with Oregon Representative Kurt Schrader and Mid Oregon Credit Union CFO Kevin Cole.The Federal Credit Union Act of 1934 is the law that creates, and is the basis for governance of credit unions. The last update to the law was 1998. In the last 20 years we have experienced a terrorist attack on US soil, an eighteen year and ongoing foreign war, the Great Recession and the Digital Age. All of this with no changes to the base law for credit unions.

That changed in May. A bill passed both chambers and was signed into law by the President. There has been a lot of hype that it repeals the Dodd-Frank Act (it doesn’t) and that it disbands the Consumer Financial Protection Bureau (it doesn’t) and that it protects “Too big to fail” (again – it doesn’t). What it did was to help community banks and credit unions with some relief from a “too small to succeed” regulatory environment.

Among other things this law:

  • Still holds all financial institutions accountable for granting mortgage loans to qualified buyers.
  • Streamlines the mortgage process, reduces unnecessary paperwork, eliminates a three-day waiting period if buyers receive additional mortgage disclosures resulting in lower interest rates.
  • Tweaks the way that loans on certain rental properties are classified, meaning credit unions will have more capital they can loan to small businesses.
  • Allows employees of a financial institution to report suspected scams against senior citizens to authorities. Currently privacy laws actually prevent that.

It also does not interfere with the Consumer Financial Protection Bureau.

I would like to thank the legislators from Oregon that took the opportunity to help local financial institutions by voting for this legislation; Representative Kurt Schrader from District #5 and Representative Greg Walden from District #2.

These are not industry changing issues or legislation. However, they are a step in helping Pacific NW FCU continue to be our members’ financial partner for life.

 

Pictured Above: PNWFCU CEO Tom Griffith meets with Representative Kurt Schrader (center) and Mid Oregon Credit Union CFO Kevin Cole (left).

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