EL SEGUNDO, Calif.-One of the problems with reining in Reg Flex is that in the process, NCUA could unwittingly rein in credit unions' ability and appetite to innovate, suggested Teresa Freeborn, CEO of Xceed FC, who offered her perspective on the proposal.
Credit Union Journal: What is your reaction to the changes NCUA is making in retracting portions of Reg Flex?
Freeborn: The imposition of those limitations on well-managed and well-capitalized credit unions is very restrictive and creates barriers to credit unions continuing to meet its members' needs. Specifically, exposing our industry to increased regulatory scrutiny can get in the way of innovation, something credit unions desperately need to focus on now more than ever.
CUJ: Do you feel Reg Flex has worked?
Freeborn: Yes, the current Reg Flex has worked well because it not only allows credit unions to run their own business in a way that best serves their members, but it also provides incentive for them to continue to be a well-capitalized and well-managed credit union.
CUJ: How do you feel about being examined more often?
Freeborn: Although frequent examinations require a substantial amount of credit union time and resources, we don't have a major concern with more frequent examinations, but it would seem that credit unions that are not well-capitalized should receive greater focus from the NCUA and the agency's resources should be dedicated to those who need more supervisory assistance.
CUJ: What, if any issues, have you had with the exam process?
Freeborn: We've just completed an exam and have been very fortunate to have such open and honest dialogue with our examiner. She took the time to understand our credit union and ask relevant questions. It truly was a partnership.
