LAS VEGAS-With one NCUA seat open and another due to come open this summer, that leaves a whole lot of question marks for what might be coming next out of the regulator, observed Jack Antonini, president and CEO of NACUSO.
With Gigi Hyland gone from the NCUA board and Michael Fryzel departing in August, "It is anybody's guess if there will be new CUSO regulations."
"The regulatory burden will continue to be the biggest concern," he said. "Mike Fryzel fought against CUSO regulations. They might not happen this year, but I fear they will happen early next year when new NCUA board members are installed."
The question, Antonini said, is how severe will the rules be. In addition to any CUSO regulations, he said there are supposed to be new loan participation rules coming this fall.
"The original proposal for loan participations was so draconian even if it is less bad now, it might be bad," he said. "Why limit credit unions from buying loans from a source that has been good for them? We should worry about anything that limits credit unions that have been trying to rebuild themselves. There is not a lot any one person or group can do about it other than talk to the regulator and try to make what they do more reasonable."
Lack Of Authority
The biggest problem Antonini has with any move by the credit union regulator to assert itself over CUSOs is what he sees as a lack of jurisdiction. He said NCUA is entitled to look at a credit union's CUSO investment, "But it does not have the legal authority to directly regulate CUSOs," he insisted.
The Consumer Financial Protection Bureau took a positive step, Antonini said, when it set up a credit union advisory counsel. Although NACUSO is not directly connected with the CFPB, Antonini said he typically comments on new regulations, and NACUSO works with members on CU advisory counsel to bring up concerns.
