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After strong advocacy on behalf of S. 2155 - the Economic Growth, Regulatory Relief and Consumer Protection Act, in meetings on Capitol Hill the previous week, the League continued its efforts by coordinating placement of an Op-Ed piece and several Letters to the Editor in newspapers across the state. “We are fortunate to have the support of both Senator King, an early co-sponsor, and Senator Collins, on this legislation and we want to publicly ‘thank’ them for their support. We really appreciate the willingness of credit union leaders to help highlight their support, and the importance of this legislation,” stated Todd Mason, President of the Maine Credit Union League.
Elise Baldacci, Vice President of Governmental Affairs for the League, said the conversations that were held in Washington, D.C., during hill visits with Senators King and Collins, reinforced “the positive impact that the legislation would have on credit unions and consumers. The bill passed by the Senate Banking Committee provides credit unions and other community financial institutions with significant relief from ill-targeted federal regulations.”
In an Op-Ed that ran this past week in the Bangor Daily News, Tina Jamo, President/CEO of Katahdin FCU, wrote, “These federal rules are also unfair. Big banks caused the Great Recession by pushing loans onto folks who couldn't repay them. But credit unions lent responsibly, and Maine credit unions are proud that we were able to continue to support Mainers by lending throughout the financial crisis. In 2009, the mortgage delinquency rate at credit unions nationally was less than 2 percent, compared with 9 percent at banks. Community lenders like us are getting crushed by Dodd-Frank. The average credit union's regulatory compliance costs have jumped 70 percent in the past decade. Roughly 1 in 4 credit union employees spends a ‘significant’ amount of time filling out regulatory paperwork.“
Jamo also explained the unique connection between credit unions and their members. “Here in Maine, credit unions have nearly 700,000 members. By design, these institutions are intertwined with their local communities; it's part of our mission. At my credit union in Millinocket, we know our members and we’ve worked hard to maintain a stable organization for them. And while numbers are important, our members remain our most valuable asset. Our story is not unique across credit unions in Maine. For instance, since 1990, Maine's credit unions have raised more than $8 million for a campaign to end hunger in the states.”
In addition to Jamo’s op-ed piece, other Letters to the Editor pieces were to the Portland Press Herald, Journal Tribune, and Bangor Daily News. In his Letter to the Editor, Jason Lindstrom, President/CEO of Evergreen CU, who wrote, “These one-size-fits-all regulations hurt my credit union‘s ability to serve our members. S. 2155, currently in the Senate, is a carefully crafted, bipartisan bill that would help credit unions all across Maine more fully serve their members’ needs, from mortgages to small business loans.” Another Letter, submitted to the Journal Tribune by Laurie Gaudreau of York County FCU, stated, “Specifically, S. 2155 would grant credit unions parity with banks when making loans for the purchase of one-to-four unit, non-owner occupied residential property loans. These loans are designated real estate loans for banks, but business loans for credit unions.”
Baldacci said both Senators King and Collins appreciate “the support they are receiving from credit unions for backing this legislation.“
At press time, S.2155 was still being debated in the Senate with momentum building. A series of votes are expected soon.
In the meantime, please take a moment to send an email of support to Senators Collins and King. Click here to send an email!
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