What New Regulatory Reform Act means to Credit Unions

President Obama held a press conference on Wednesday, to unveil his new regulatory reform plan for the financial and insurance industry.  There is good news in his proposal for credit unions.  Credit unions will still have an independent regulator under his proposal.  We will not be lumped or dumped into the same regulator board as the banks. Since credit unions are not for profit but for service, I take this to mean that the President recognizes that credit unions are not part of the current problem so they do not need to have a totally new regulator.  His proposal also seeks to create a Consumer Financial Protection Agency that would oversee consumer products including mortgages and credit cards.  Any new regulatory agency will create more compliance issues and most likely drive up the cost of financial products and services. 

Our state and federal trade associations will work hard to protect the interest of credit unions through the legislative process.  Credit unions are not the cause of the subprime mortgage crisis that lead to bank failures, nor are credit unions part of the credit card abusive practices.  Credit unions are here to provide reasonably priced products and services to our members and not earn profits for or drive up the value of stock for stockholders.  The credit union motto is and always has been “Not for Profit, Not for Charity, But for Service”.

 At Hopewell Federal, we try very hard to live up to that motto.  We strive everyday to help our members get ahead financially.

 Thanks for your support of credit unions.

 Al

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