State Credit Union Trade Association Backs Away From NAFCU Stance

cing itself from a [link=][u]recent announcement[/u][/link] made by the National Association of Federal Credit Unions (NAFCU), which has stated its opposition to current bankruptcy reform legislation, the Washington Credit Union League clarified its position saying that it will support the bankruptcy reform package before Congress, as long as that package includes meaningful limitations on cramdown provisions. Despite some disagreements on certain aspects of the plan, such as the position of second-mortgage holders, the Washington League believes that a compromise agreement that will assist financially strapped consumers while still protecting blameless lenders will soon be reached. The league also believes that the letter sent by NAFCU rejecting the plan outright before talks can be finalized represents a minority view and is not reflective of the view held by the vast majority of Washington state's 120 credit unions. NAFCU represents less than 10% of Washington credit unions on certain federal issues and has been absent from talks on this important issue since it walked away from the negotiation table last year, the league adds. "We're disappointed at the letter sent by NAFCU to Senator Durbin, but understand the association's concerns," says Washington Credit Union League President and CEO John Annaloro. Sen. Richard Durbin, D-Ill., has been one of the principle bankruptcy negotiators attempting to balance the interests of consumers and creditors. "Credit unions have not contributed to the nation's current financial woes, so we just need to be sure that the final bankruptcy reform bill doesn't damage their ability to continue to lend to consumers when some other lenders aren't currently able to make loans," Annaloro adds. SOURCE: Washington Credit Union League Ta


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