WASHINGTON — CUNA has created a 12-member task force — including CU CEOs, state league presidents, a volunteer at a credit union and a CEO who represents a credit union not affiliated with CUNA — to study the trade group's structure and governance.
CUNA Chairman Dennis Pierce said the task force will make recommendations to its board of directors, perhaps as early as next spring.
Benson Porter, CEO of $12.5 billion BECU, Tukwila, Wash., will serve as the task force's chairman. Rick Goldstein, founder and president of Kensington Consulting Group, Washington, D.C. area, was retained by CUNA to facilitate the deliberations of the task force.
The 12 task force members are (all are CEOs unless otherwise noted): Benson Porter (Chairman), BECU, Tukwila, Wash.; Patty Campbell, Christian Financial CU, Roseville, Mich.; Michael Castellana, SEFCU, Albany, N.Y.; Tom Dorety, Suncoast CU, Tampa, Fla.; Caryl Greene, MembersFirst CU, Pensacola, Fla.; Kenny Harrington, MemberSource CU, Houston; Patrick Jury, Iowa Credit Union League, Des Moines; Pat Moreno, Travis CU, Vacaville, Calif. (chairman); Stephanie Sherrodd, TDECU, Lake Jackson, Texas (currently not affiliated with CUNA); Rod Staatz, SECU, Linthicum, Md.; Glenn Strebe, Air Academy FCU, Colorado Springs, Colo.; Brett Thompson, Wisconsin CU League, Madison, Wis.
State Employees CU CEO Jim Blaine, whose CU's disaffiliation from CUNA earlier this year surprised many in the credit union community, applauded the trade group's decision to reexamine its structure.
"I'm glad they are looking at the CUNA/league structure," he said. "There are three factors driving the need for change: the consolidation of credit unions, the aggregation of assets in the hands of a few credit unions and the consolidation of the leagues. The market is changing as fast as the devil."
Blaine suggested CUNA may want to look at its rival credit union trade association for inspiration. "I think the direct representation model that NAFCU has is the most beneficial way to lobby Washington today," he said.
When SECU disaffiliated, one of the sticking points that was discussed was the requirement that to be part of CUNA a credit union must also belong to its respective state league, and vice versa, essentially requiring a credit union to pay dues to two organizations, even if it was primarily interested in membership in just one of them. But Blaine said SECU's decision to pull out of CUNA went far deeper than issues of structure.
"Our organization's dilemma is that we are, perhaps, an eccentric credit union in that we are very pro-consumer," he said. "We are doing business services some of our credit union brethren are. We are strictly consumer-focused. We increasingly found ourselves on the wrong side of some political issues."
In addition to not sharing CUNA's focus on revising or removing the member business lending cap, other issues that SECU took a different tack on included things such as overdraft protection and other consumer protection issues. "It was increasingly difficult to maintain our silence on these issues," Blaine told Credit Union Journal. "There's a school of thought that you stay on the bus and try to work toward change internally, from the inside, but eventually, if all you're doing is whining, it's time to get off the bus. Instead of arguing with CUNA, we are choosing to argue on behalf of consumers independently."
But that doesn't mean the credit union is totally going it alone, Blaine noted. "We are aligning with other pro-consumer groups like the Consumer Federation of America and the Center for Responsible Lending," he said. "Our members need that help. They're getting killed."
