National Association of Federal Credit Unions (NAFCU)

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National Association of Federally-Insured Credit Unions (NAFCU)

Overview

The National Association of Federally-Insured Credit Unions (NAFCU) is a trade association that represents federally insured credit unions across the United States. Founded in 1967 and headquartered in Arlington, Virginia, NAFCU advocates for the interests of both large and small credit unions, helping shape laws and regulations that affect the industry.

Membership and reach

  • Represents a large portion of the federal credit union sector—approximately 72% of total federal credit union assets and 51% of all federally insured credit union assets.
  • Membership includes many federally-insured state-chartered credit unions.
  • Serves credit unions of varying sizes with advocacy, education, and operational resources.

Role and activities

NAFCU’s core activities include:
* Advocacy: Lobbying lawmakers and regulators on issues affecting credit unions, including legislation and regulatory interpretation.
* Education and training: Providing compliance guidance, professional development, and industry best practices.
* Information and support: Supplying members with research, policy analysis, and operational assistance.

Regulatory context for federal credit unions

  • Federal credit unions are member-owned financial institutions organized under federal law and regulated by the National Credit Union Administration (NCUA).
  • Deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, which serves a role similar to FDIC insurance for banks.
  • Many federally recognized credit unions are tax-exempt under Section 501(c)(14) of the Internal Revenue Code, but they still pay fees that fund regulatory oversight and deposit insurance.
  • Federally insured credit unions must report financial information to the NCUA at least annually and can be subject to more frequent reporting or examinations as required.

Policy priorities and history

  • Founding purpose: Protect and promote the success and efficiency of federal credit unions.
  • Major early accomplishment: Support for the establishment of the National Credit Union Share Insurance Fund.
  • 1990s: Worked to prevent rollbacks of credit union deposit insurance.
  • Dodd-Frank and CFPB: During financial reform debates, NAFCU argued that credit unions’ member-owned, non-profit structure warrants different regulatory treatment from for-profit banks and that certain consumer protection oversight (such as direct CFPB regulation) could be unduly burdensome.

What NAFCU offers members

  • Legislative and regulatory advocacy on Capitol Hill and before federal agencies.
  • Compliance resources, training programs, and industry conferences.
  • Research, policy analysis, and member communications to help credit unions respond to regulatory change and market challenges.

Key takeaways

  • NAFCU is the primary trade association advocating for federally insured credit unions, with substantial industry representation.
  • It focuses on influencing regulation, providing member education, and defending credit unions’ interests in major policy debates—particularly around deposit insurance and regulatory oversight.
  • Federal credit unions operate under the NCUA, enjoy share insurance protection, and have special tax status, but they remain subject to reporting, fees, and regulatory requirements.