NV League and Credit Unions Keep Focus on Their Members

Nevada capitol building dome

The Nevada Credit Union League’s mission has been magnified as it continues focusing on helping Nevada credit unions change people’s lives by supporting staff, volunteers, operations, awareness, guidance, strategy and philosophy.

The following state legislative successes, congressional achievements, and regulatory outcomes over the past few years are direct examples of how the League’s victories and operations positively impact ALL credit unions across Nevada! (You can also view the entire impact report here)

5 Major Achievements in Nevada Legislature
PREVENTED Onerous Requirements on Debt Collections: During the 2021 session, Assembly Bill 152 was introduced at the request of the Nevada Justice Association. AB 152 would have restricted the method by which creditors could collect delinquent debts. This Nevada bill was inspired by (but went far beyond) the Rosenthal Fair Debt Collection Practices Act in California, which is an extensive version of the federal Fair Debt Collection Practices Act and sought to address unfair or deceptive collection practices. The bill would have placed complicated, if not impossible, requirements on lenders attempting to collect on a debt. Unlike its federal counterpart, the bill would have applied to credit unions.

SAFEGUARDING Lien Status for Credit Unions: Senate Bill 57 would have allowed for a special assessment with super-priority status. Clark County requested SB 57 to address problematic short-term rental properties. The bill would have allowed county governments to recover an unpaid fine for an offense related to real property by making it a special assessment against the property and collecting it in the same manner as property taxes. The assessment would have super-priority status and take priority over all other lien holders, including first-lien mortgages. The Nevada League was successful in defeating the measure, as the bill died in the state assembly without a vote.

PROTECTED Credit Unions During COVID-19: During the second special session of 2020, Nevada Governor Steve Sisolak signed Senate Bill 4 — the first-in-the nation legislation protecting Nevada workers and businesses from frivolous lawsuits related to the COVID-19 pandemic. Although the initial draft did not include credit unions, the Nevada League, alongside its member credit unions, engaged legislators in both houses to ensure credit unions were included in the final draft.

SECURED Parity for Mortgage Originators: Senate Bill 479 eliminates the requirement that a residential mortgage loan originator acting on behalf of privately insured institutions be licensed as a mortgage agent by the Financial Institutions Division (FID) of the Nevada Department of Business and Industry. This requirement is eliminated when the FID enters into a memorandum of understanding with the National Credit Union Administration (NCUA) for the registration of mortgage loan originators under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The bill will allow privately insured credit unions to operate on a level playing field with federally insured credit unions and other financial institutions.

EXEMPTED from Internet Privacy Mandate: Senate Bill 220 prohibits an operator, with certain exceptions, of a website or online service from selling certain personal identifiable information collected from a consumer if a consumer submits a verified request to the operator directing the operator not to sell such information. The bill authorizes Nevada’s attorney general to seek an injunction or a civil penalty against an operator that violates these provisions. Early in the process, the senate majority leader accepted Nevada League amendments to exempt financial institutions that comply with opt-out requirements of the Gramm-Leach-Bliley Act and its implementing regulations.

10 Notable Accomplishments in Congress
Proactive on YOUR Behalf: Legislation Defeated: A new Internal Revenue Service (IRS) reporting provision would have required credit unions and other financial service providers to report gross cash flow for accountholders as a means to closing the “tax gap.” Regardless of the proposal’s variations, the League and the Credit Union National Association (CUNA) worked with two congressional representatives from Nevada and California to end this provision:

  • Rep. Stephen Horsford (D-NV) aided by assembling a coalition of Democrats to formally oppose the issue. Through Rep. Horsford, the Nevada Credit Union League directly lobbied Deputy Treasury Secretary Wally Adeyemo and a team of assistant secretaries to revise and withdraw their proposal.
  • Rep. Lou Correa (D-CA) championed a letter signed by 21 House Democrats who opposed the provision and withheld their vote until the overall package on this piece was delivered. These two elements brought about the termination of the IRS reporting-requirement proposal.

Legislation Advanced:

  • Rep. Norma Torres’ (D-CA) amendment was included in the House-passed Financial Services and General Government Appropriations Bill, which authorizes grants from the Community Development Revolving Loan Fund to be utilized for grant-writing purposes for credit unions under $100 million in assets.
  • H.R. 3958, which makes the extended borrowing authority of the National Credit Union Administration’s (NCUA) Central Liquidity Facility permanent, is pending on the House Floor.
  • H.R. 2133 updates the Federal Credit Union Act, shifting membership expulsions from members to the board of directors. It has advanced from the House Financial Services Committee by voice-vote with unified bipartisan support. It is a shining example of how credit union bills should be addressed in Congress. The bill is pending on the House Floor.
  • Working with the League, Rep. Linda Sanchez (D-CA) won support to include a fix to the IRS Employee Tax Credit (ERC) and apply it to federal credit unions (state credit unions were initially eligible).

Bills in Progress:

  • The Expanding Financial Access for Underserved Communities Act would remove field-of-membership restrictions, allowing unlimited access to underserved communities and banking deserts. This effort is being led by the chairwoman of the House Financial Services Committee, one of the most powerful policymakers in banking law.
  • Rep. Cortez Masto’s (D-NV) Expanding Access to Lending Options Act (S. 762) raises the federally chartered credit union maturity limit to 20 years for non-mortgage loans. Sen. Alex Padilla (D-CA) is a lead co-sponsor.
  • Rep. Brad Sherman’s (D-CA) H.R. 1471 provides a one-year safe harbor for the credit union member business lending cap during periods of economic disaster.

Communication from Congress to the Administration:

  • In early February, House Financial Services Committee Chairwoman Maxine Waters (D-CA) requested NCUA Board Chairman Todd Harper to provide federal regulatory relief with respect to stimulus checks and other federal government deposits coming into credit unions.

PAC, Grassroots Advocacy, Regulatory Reform & More
Click here to view the entire report, including additional wins and victories in:

  • Supporting the credit union cause, fundraisers, and district meetings with elected officials.
  • Motivating your members through Connect for the Cause and calls to action
  • Project Zip Code.
  • Looking out on credit unions' behalf with respect to the Nevada Financial Institutions Division (DIF), National Credit Union Administration (NCUA), Consumer Financial Protection Bureau (CFPB), the Federal Reserve Board (FRB), and Federal Housing Finance Agency (FHFA).
  • Innovative webinars, seminars, and events.
  • Compliance for superior performance.
  • Communication with a purpose.
  • Business solutions that work.
  • Bringing it all together.

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