NCUA, Be Prepared, No Whining

by: Hon. Daniel A. Mica, Principal, The DMA Group

Credit unions have a unique opportunity over the course of the next three months to step up to the microphone and have the ear of NCUA Board Chairman Debbie Matz. Chairman Matz recently announced the agency’s plans to host a series of listening sessions from May to July throughout the country. [Dates and registration information is available on the NCUA website] She told the attendees of CUNA’s Governmental Affairs Conference last month, “We want to hear directly from you about how we can improve our examination process, how we can reduce or streamline our regulations, and anything else that’s on your mind.”

Over the course of my career I have been on both sides of these types of interactions. As a member of Congress, I would host town-hall type events where my constituents would come and air their opinions and grievances (mostly grievances). Working in the private sector here in Washington, I have prepared witnesses for testimony before committees and prepped advocates for in-person meetings with their representatives and regulators. Over these 40 years in Washington I have witnessed effective and ineffective approaches to getting a point across in these circumstances and would like to share some of my experiences with you.

Acknowledging their position [Recognize their point of view]
While Chairman Matz has set herself up as the “listener”, I encourage credit unions to do the same. The NCUA is making an attempt to bridge the gap between credit unions and examiners, to assist the credit unions in the existing appeals process.  There will be valuable information shared at these sessions that can be beneficial to your cause.  Being a face-to-face event, establishing a personal, conversational, tone can help break down barriers to communication. Firing off a list of grievances credit union attendees who are there only to vent rather than gather resources will squander an occasion to gain insight into how to make the system work for them.

Preparation is key
Assertive, direct and respectful communication will gain the attention of agency officials. Knowing their position and possible retort beforehand can help minimize emotional reactions. Recognize that Chairman Matz, out of necessity, approaches many issues from a very high level. Be prepared to provide necessary background and perspective if permissible. For all stakeholders in the credit union movement there are certain hot-button topics. Minimize the emotion in your remarks and acknowledge the efforts of your peers at NCUA.

Speak to the solution
Most important of all, have a plan, a solution or suggestion on how to successfully proceed with the issue at hand. Be ready with materials and resources to follow up directly with your proposals to Chairman Matz or her representatives. NCUA has heard the gripes and simply re-stating that the regulator doesn’t understand your situation may not be helpful. These sessions are a great opportunity to tell the Chairman directly that solutions and compromise are possible. A well articulated and thought out course of action may yield positive results.

Compromise is king (Or don’t be like Congress)
As you well know here in Washington it is tough to get Congress and government agencies to move on almost anything. Many of these stalemates stem from a simple unwillingness to compromise. Even if you have presented an infallible master plan, be prepared to cede your argument and while your solution may be nothing short of genius, compromise is almost always required for a win-win outcome.

Tap into your cooperative spirit and work with your peers, your leagues and your associations to come up with a comprehensive solution that takes into account the requirements set forth by the agency. Coordinate with credit unions in similar situations and pool your resources to provide the footwork for NCUA. In a time period where the unwillingness to compromise has created the worst gridlock in Congress in our lifetime, your efforts to lead by example by working together will be a beacon of sensibility.

Don’t be “that guy” on Youtube
As someone who has carried a very public mantle on behalf of credit unions for many years I feel that I can speak to this one last point with a fair bit of authority. In the digital age we must assume that what we say and do in public will end up broadcasted to the masses, instantly and without prejudice. Of course we all run the risk of saying the wrong thing at the wrong time, however for the most part, this aspect of a listening session can be turned into a positive. Credit union advocates from around the country can be examples of involvement and candor. We can show NCUA, our members and the public at large that the movement is strong, vocal and willing to work together for good of the movement.

I’ve heard stories for many years about belligerent behavior during the examination process and it often becomes a “he said, she said” debate. However, I do think it is necessary that a better process be developed not only to appeal examinations but also to deal with individuals who are not acting as proper public servants. I plan to devote additional time in the future to develop a white paper on this subject. During my personal tenure in government, I made it a practice of looking into situations where a pattern is shown that an individual is using their public position improperly. For now I would advise, that you keep a careful record of abusive or improper behavior, document it as carefully as you can, note witnesses, etc, and ask your legal counsel and/or trade association to be aware of the situation.

The credit union movement is filled with smart, capable people who can give voice to the concerns and challenges of working with their regulatory agency. I encourage you to spend some time preparing for this opportunity by forming your plans of action and crafting your best active listening skills as you go forth to hear, as well as, to be heard.

Dan Mica, former head of the Credit Union National Association (CUNA), established The DMA Group as a means to combine a myriad of experience into a one-stop consultancy.  Elected in 1978 to represent Florida’s 11th district in the U.S. House of Representatives, Dan Mica served five terms before beginning what would become more than two decades of work in the world of non-profits and association management.  The DMA Group is a full-service consulting firm, providing the highest level of integrity and service through established practices and decades of experience.  www.dmagroupdc.com