WASHINGTON — Community bank and credit union associations have taken their fight over a proposal to expand the products and services of federal credit unions to the Bush administration.

Diane M. Casey, president of America’s Community Bankers, urged the Office of Management and Budget in a Jan. 23 letter to review a National Credit Union Administration proposal for “incidental powers” that would let federally chartered credit unions offer services and products such as Internet banking and individual retirement accounts.

“We believe the NCUA has grossly exceeded its authority in issuing this proposed regulation,” she wrote.

Ms. Casey’s letter responded to an executive order by President Bush that called for a review of new and pending regulations issued by executive branch departments and agencies in the last days of the Clinton presidency. Independent agencies, such as the NCUA, were asked to participate voluntarily.

In a Jan. 25 letter to NCUA Chairwoman Yolanda T. Wheat, Daniel A. Mica, president and chief executive officer of the Credit Union National Association, countered that the NCUA has the authority to “enhance incidental powers for credit unions as the bank regulators have done for banks.

“We view ACB’s efforts as pandering to its membership, and we fully anticipate that the NCUA will not be intimidated, despite ACB’s misguided letter, to back away from the incidental powers proposal,” Mr. Mica wrote.

The incidental powers proposal was issued in November. Comments are due Feb. 22.

Ms. Casey also asked the budget office to review a proposal by the Office of Thrift Supervision to increase its regulation of holding companies, as well as anti-predatory lending proposals by the Federal Reserve Board to increase the number of mortgages subject to reporting requirements and to broaden the Home Mortgage Disclosure Act to require lenders to report the annual percentage rates of all loans.

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