What is the National Association of Federally-Insured Credit Unions (NAFCU)?
The National Association of Federally-Insured Credit Unions (NAFCU) is a membership-based trade organization for credit unions insured by the federal government. In an overall effort to help the credit union industry grow, NAFCU works with its member credit unions, acting as a representative and assistant, and also providing members with educational information that helps each strengthen itself individually.
Summary
The National Association of Federally-Insured Credit Unions (NAFCU) is a membership-based trade organization for credit unions insured by the federal government.
NAFCU saw its first major federal victory to protect shareholders in helping to create the National Credit Union Share Insurance Fund (NCUSIF) in 1970. NAFCU again acted in defense of the NCUSIF during the early 1990s when the federal government wanted to make significant changes to it.
The association continues to fight for the credit union industry by pressing back against the CFPB and its sweeping regulations.
History of the NAFCU
The National Association of Federally-Insured Credit Unions was actually started in a bar. Several friends in the federal credit union industry got together and spoke about the shortcomings of certain federal interests. With their respective credit unions on board, NAFCU was formed in 1967 to fill the federal coverage gaps existing in the credit union market.
The association secured its first major federal victory to protect shareholders, helping to create the National Credit Union Share Insurance Fund (NCUSIF) in 1970. NAFCU again acted in defense of the NCUSIF during the early 1990s when the federal government wanted to make significant changes to it.
The NAFCU vs. the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) was established as part of the Consumer Protection Act (CPA) and the Dodd-Frank Wall Street Reform Act. Over the course of its existence, it substantially ramped up regulatory mandates placed on credit unions. NAFCU, in its defense of credit unions across the country, works to oppose these severe burdens, which were a direct result of the 2008 Global Financial Crisis within the United States.
To date, credit unions are more highly regulated by the CFPB than any other financial institution. Reforms and new regulations tend to be “sweeping, one-size-fits-all” in order to target “bad actors,” NAFCU’s website contends. The moves tend to create an environment of regulations that’s weighed down all credit unions and knocked 1,500 credit unions out of the industry.
NAFCU, in an effort to defend the credit union industry as a whole, continues to push back against such regulations. The organization fights at the federal level to reduce and revise many of the regulations imposed by the CFPB. In an effort to take things even further, NAFCU continues to seek legislative changes that will make it necessary for the CFPB to be more transparent about their methods for creating and imposing regulations, forcing them to take on more accountability.
More Resources
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