WASHINGTON — The National Federation of Community Development Credit Unions is pressing its case for regulatory relief and enhanced access to capital.
In meetings with the NCUA. Federation Chairman Randy Chambers, CFO of Self-Help CU in Durham, N.C., said the "credit union movement, and CDCUs in particular, are under intense stress. It is imperative that CDCUs have increased access to resources and a supportive regulatory environment to survive and grow."
During its meeting with NCUA the Federation also discussed examination practices, whistleblower protections and what can be done about the fact CDCUs received a "disproportionately small share" of the Community Development Financial Institution Fund in the most recent round of grants.
Federation reps also pressed the agency to have its examiners respect the "unique operating characteristics of credit unions serving low-income memberships," and to adhere to a white paper on the subject that NCUA has previously endorsed. "We have found that many examiners and supervisors are not even aware of the White Paper, much less follow its guidance," said Helen Godfrey-Smith, CEO of Shreveport FCU in Louisiana. "This is a clear example of the disconnect that exists between NCUA board-level policies and actual practice on the ground."
As for capital, the Federation reiterated its long-held argument for the elimination of non-member deposit restrictions on low-income credit unions, which are currently limited to the greater of 20% of their assets or $1.5 million in these deposits without seeking a waiver. "The restriction has undermined the business strategies and created unnecessary paperwork for CDCUs," the Federation said.
