National Association of Federally-Insured Credit Unions (NAFCU)

What Is the Nationwide Affiliation of Federally-Insured Credit score Unions (NAFCU)?

The Nationwide Affiliation of Federally-Insured Credit score Unions (NAFCU) is an business commerce group based in 1967 to signify the pursuits of federal credit score unions, and promote the success and effectivity of the business. Its membership is made up of each giant and small credit score unions. NAFCU represents 72% of whole federal credit score union (FCU) property and 51% of all FICU property. NAFCU’s membership contains over 180 federally-insured state-chartered credit score unions (FISCUs). Its actions embody representing, informing, educating, and helping its members concerning business points. Headquartered in Arlington, Va., one among its primary functions is to affect the legal guidelines and laws affecting federal credit score unions.

Understanding the Nationwide Affiliation of Federally-Insured Credit score Unions (NAFCU)

The Nationwide Affiliation of Federally-Insured Credit score Unions (NAFCU) is a commerce group for federal credit score unions. Federal credit score unions are just like banks, however are owned by their members and are organized below federal relatively than state legislation. They’re regulated by the Nationwide Credit score Union Administration, and members’ deposits are protected by the Nationwide Credit score Union Share Insurance coverage Fund, which is analogous to FDIC insurance coverage.

The Federal Credit score Union system was established by the Federal Credit score Union Act in 1934 to advertise financial savings and the financing of homeownership and different productive functions. Credit score Unions which might be acknowledged by the federal authorities by the Nationwide Credit score Union Administration (NCUA), an impartial federal company, are tax-exempt below Part 501(c)14 of the US Inside Income Code. Although federal credit score unions don’t earn revenue and pay no company revenue tax, they’re required to pay charges to fund regulatory features and deposit insurance coverage. Federal credit score unions are additionally required to report their funds to the NCUA at the least as soon as per 12 months, however in addition they could also be required to report greater than as soon as per 12 months.

Priorities of the Nationwide Affiliation of Federally-Insured Credit score Unions

The NAFCU was fashioned in 1967, and its first main coverage victory was the institution of the Nationwide Credit score Union Share Insurance coverage Fund, which is the deposit insurance coverage program for credit score unions. The following huge coverage battle for the NAFCU was within the Nineteen Nineties when the group fought off efforts to roll again deposit insurance coverage for credit score unions. It additionally took nice curiosity within the Dodd-Frank monetary reform laws, combating efforts to make credit score unions topic to oversight by the Shopper Monetary Safety Bureau. The Nationwide Affiliation of Federal Credit score Unions argued that as a result of credit score unions’ non-profit and member-owned construction, they don’t deserve the identical degree of scrutiny as for-profit banks and that compliance with CFPB laws could be unduly burdensome.