National Association of Federally Insured Credit Unions (NAFCU)
What is the National Membership of Federally Insured Credit Unions (NAFCU)?
The National Affiliation of Federally-Insured Credit Unions (NAFCU) is a trade group founded in 1967 to signify the activities of federal credit unions and promote business success and efficiency. Its members are made up of giant and small credit unions. NAFCU represents 72% of all Federal Credit Union (FCU) assets and 51% of all FICU assets. NAFCU members include more than 180 federally insured state chartered credit unions (FISCUs). Its actions consist of representing, informing, educating and helping its members on business issues. Based in Arlington, Virginia, one of its primary functions is to influence laws and statutes affecting federal credit unions.
Understanding the National Affiliation of Federally Insured Credit Unions (NAFCU)
The National Affiliation of Federally-Insured Credit Unions (NAFCU) is a trade group for federal credit unions. Federal credit unions are like banks, but are owned by their members and are organized under federal rather than state law. They are regulated by the National Credit Union Administration, and member deposits are protected by the National Credit Union Share Insurance Fund, which is similar to FDIC insurance coverage.
The Federal Credit Union system was created by the Federal Credit Union Act in 1934 to promote financial savings and the financing of home ownership and other productive functions. Credit unions that are federally recognized by the Nationwide Credit Union Administration (NCUA), an impartial federal corporation, are tax-exempt under Part 501(c)14 of the US Inside Income Code. Although federal credit unions do not earn income and pay no corporate taxes, they are required to pay fees to fund regulatory arrangements and deposit insurance coverage. Federal credit unions are also required to report their funds to the NCUA at least once every 12 months, but they may also be required to report more than once every 12 months.
Federally Insured Credit Union National Membership Priorities
NAFCU was established in 1967, and its first major coverage victory was the creation of the National Credit Union Share Insurance Fund, which is the deposit insurance program for credit unions. The next big coverage battle for NAFCU came in the 1990s when the group pushed back on efforts to restore deposit insurance coverage for credit unions. It also took a lot of attention to the Dodd-Frank financial reform laws, fighting back against efforts to subject credit unions to the oversight of the Buyer’s Financial Security Office. The Nationwide Affiliation of Federal Credit Unions argued that because of the nonprofit, member-owned construction of credit unions, they did not deserve the same degree of scrutiny as for-profit banks and that compliance with CFPB laws could be unduly burdensome.