Orrin Hatch's Letter

Last week, Senate Finance Chairman Orrin Hatch sent a letter to the National Credit Union Administration (NCUA) expressing his concerns over whether credit unions are sticking to their intended purpose while remaining exempt from federal corporate income tax. Hatch questioned NCUA Chairman Mark McWatters about his efforts to relax restrictions on credit union activities, specifically loosening the field of membership constraints, allowing credit unions to lend to businesses and expanding their financial portfolios.

In his letter, Hatch notes he’s “concerned that the credit union industry is evolving in ways that take many credit unions further from their original tax-exempt purpose.”

Both IBAT and ICBA have long sought to ensure credit unions stay within their original purpose while keeping their tax-advantaged status over tax-paying community banks.