Change in Washington, Change to Credit Union Regulations
In addition to President Donald Trump taking office in the White House, there will be another significant shift in Washington in 2017. With a newly Republican-dominated Congress, change is ahead for credit unions and the agencies that regulate them.
Dodd-Frank — During Trump's campaign, his team promised to eliminate the Dodd-Frank Regulations. Dodd-Frank was passed in 2010 and has since imposed a great amount of burden on the banking and housing industries.
The New Membership Rule — NCUA’s Modern Field-of-Membership Rule allows more American’s to be eligible to join a credit union. According to the NCUA, there will be more than a dozen changes to the current Field of Membership. Credit union membership is already at an all-time high, and this rule change will allow more consumers to experience the benefit of belonging to a credit union.
Renaming NCUA’s Consumer Office — NCUA announced that they will be changing the consumer office name from the Office of Consumer Protection to the Office of Consumer Financial Protection and Access. The name change is to clarify the office’s function and role.
The New MBL Rule — The new MBL rule took effect on January 1, 2017. This new rule will allow credit unions to be more competitive when offering business and commercial loans to their community.
The Consumer Financial Protection Bureau (CFPB) — The new Congress is expected to make a dramatic change to the Consumer Financial Protection Bureau. The entire structure of the CFPB is said to be changed from being run by a single person to being run by a board.
Tax Cuts — Donald Trump’s tax cut plan is to lower rates for both individuals and businesses. Trump’s proposed plan will have only three tax brackets of 12%, 15%, and 33% for individuals. In addition, business taxes will be slashed from 35% to 15%.
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