WASHINGTON-While many credit union CEOs are expressing concerns with NCUA's new Regulatory Modernization Initiative, CUNA and NAFCU are indicating support for the program, but said they want to carefully work with the agency as the effort takes shape.
Credit union executives questioned NCUA's new initiative that Chairman Debbie Matz says is deregulatory in its aims. Many CEOs contend it will have the opposite effect.
However, CUNA believes the program is right for the times. "We think this is a positive step in the right direction and the timing is something we think credit unions will appreciate," said Mary Dunn, SVP and deputy general counsel. "I think the agency is really looking at ways to minimize regulatory burden and the timing could not be better-credit unions are operating under the biggest list of regulations they have ever faced, and more regulations are in the hopper."
Addressing CEO sentiment that the new program will only bring more regulation, Dunn told Credit Union Journal, "I don't want to sound like I am preaching to our members, and I certainly understand why they might have a negative reaction. But by the same token I think it is positive that the agency is looking at regulatory relief and it is incumbent upon CUNA and others to make sure this initiative does not turn out to be just an exercise but really adds value to the credit union system."
Dunn said CUNA wants to work with NCUA on the proposal as "the devil is always in the details." Some of the details CUNA will be paying close attention to are the CUSO and interest rate risk proposals, which the association contended are not sufficiently targeted to problem areas and will have a negative effect on credit union innovation. CUNA will be urging senior agency officials to consider changes to those and other proposals that will address concerns without imposing regulatory overkill on the credit union system.
A 'Careful' Examination
NAFCU weighed in, reminding Credit Union Journal that it generally supports all regulatory relief efforts. "That does not mean we won't look very closely at the specifics," said Tessema Tefferi regulatory affairs counsel. "Whatever actions NCUA takes going forward we will carefully examine."
Tefferi said NAFCU remains concerned that CU examinations are inconsistent and in many cases overburdening credit unions. "We sent a letter to NCUA in August specifically asking the agency to implement President Obama's Executive Order 13579, review regulations, and give the chance to comment on the regs . . . We continue to hold discussions with the agency to address specific regulations and convey our members' desire and need to live in a regulatory environment that does not overburden them."
