WASHINGTON-Staffers on the Senate Banking Committee are said to be reviewing the eligibility of Deborah Matz to be the next chair of the NCUA Board, in light of her work in the industry since leaving the NCUA Board in 2005.
Matz, who worked as a senior executive at Andrews FCU, and briefly as interim CEO, may run afoul of provisions of the 1998 amendments to the Federal CU Act-otherwise known as HR 1151.
The law, ostensibly allowing credit unions to serve multiple groups, stipulates that not more than one member of the three-person NCUA Board "at the time of the appointment, are, or have recently been, involved with any insured credit union as a committee member, director, officer, employee, or other institution-affiliated party."
Matz served as chief operating officer for the $800-million Andrews FCU, which is located in the Baltimore suburb of Suitland, and then briefly as interim CEO, leaving in June 2008.
If confirmed, Matz would be joining fellow Democrat Gigi Hyland who worked as a corporate credit union lobbyist for CUNA and general counsel for what was then known as Empire Corporate FCU (now part of Members United Corporate FCU).
The stipulation on not more than one member having direct credit union experience was inserted into HR 1151, the CU Membership Access Act, to prevent the industry form having too much influence at the regulator. It was one of several provisions added to the 1998 law that credit unions have found troubling at time, including the limits on member business loans; restrictions on the mergers of credit unions and an easing on conversions to mutual savings banks.
One source indicated that even with the stipulation, Matz is likely to be confirmed by the Senate. But the confirmation could prove problematic if her seating on the NCUA Board is questioned if NCUA is ever sued or challenged otherwise.
