MANCHESTER, N.H. – New Hampshire Congressman Frank Guinta welcomed more than 30 credit union officials at America's Credit Union Museum on Friday for a roundtable discussion that featured NCUA Chairman Debbie Matz.
The Republican member of the House of Representatives thanked Matz for being a part of the discussion. He noted that as a longtime member of St. Mary's Bank Credit Union, he has growing concerns about the difficult regulatory climate CUs in New Hampshire face.
In her opening comments, Matz noted how important such intimate roundtable discussions with credit union officials are to her and the agency. She said while overarching policy conversations are important, the one-on-one conversations and dialogue she has with credit union officials and volunteers gives her valuable insight into the day-to-day business and issues credit unions face.
Paul Gentile, president and CEO of the Cooperative Credit Union Association, then addressed the group. He said New Hampshire credit unions have had continuous strong performance levels, and noted 44% of the state's population is a credit union member.
Gentile said the CU community is pleased that NCUA released a proposed field-of-membership regulation this week. He said the ability for congressional districts to be considered well-defined local communities, and the addition of service facility to include a transactional website, are welcomed provisions. Gentile said the CCUA plans to provide substantive comments on the rule, to include comments on the 2.5 million limit on MSAs.
The group then addressed a variety of issues with Chairman Matz, topped by a desire to restore an 18-month examination period. Multiple credit union officials stated that due to their safe and low-risk activities, and to the increasing burden of the 12-month period, they would be low-risk, useful candidates for a potential pilot-type program to test the implementation of an 18-month exam period. Three credit unions noted that in their recent examination cycle, the examiners remained in their institutions for a month.
Matz, however, remained steadfast in her position that moving to an 18-month exam period next year – at the same time as many of the agency's regulatory relief proposals will become effective – would be an irresponsible approach.
Guinta questioned whether the NCUA has the flexibility to consider some type of collaboration with New Hampshire credit unions, who are performing so well, to test out a longer examination period. Matz replied it seemed a sensible idea to have some type of pilot program in a state such as New Hampshire, and expressed a willingness to continue a more focused dialogue and potentially implement such a program in the future.
Gentile asserted such dialogue should consider possible triggering events that would either preclude or allow certain credit unions to be examined on an 18-month period.
"I want to thank the Congressman and Chairman Matz for spending the time to dialogue with New Hampshire credit unions about issues that are so vital to how they serve their members," said Gentile. "I was thrilled with the Congressman's idea on an 18-month pilot program and for the Chairman's willingness to dialogue further on how an extended exam cycle dialogue could begin and be used to find a path to extended cycles."
Regulatory Relief Lacking
Other topics of interest discussed during the session included the difficulty credit unions are having feeling any kind of regulatory relief when regulations are constantly being amended, and new regulations being implemented. Multiple credit union officials mentioned the increased burden faced due to regulations from the Consumer Financial Protection Bureau.
Guinta closed the program by recognizing one of New Hampshire's small credit unions, and expressing his wish that small credit unions not be forced out of business. He spoke highly of his personal credit union membership, and stated that such member service is extremely valuable, especially in a state such as New Hampshire where many individuals would be unbanked were it not for our state's credit unions. He asked that the dialogue continue between the NCUA and the credit union community.
Friday's roundtable was webcast live to members of the Cooperative CU Association unable to attend the event in person. Click
The Cooperative Credit Union Association, headquartered in Marlborough, Mass., promotes the interests of more than 180-member CUs located throughout the states of Massachusetts, New Hampshire and Rhode Island.
