Press
CUNA urges Senate to schedule McWatters NCUA nomination
Critical Senate take action as agency starts process of finalizing key rule
(June 12, 2014) — Today, the Credit Union National Association (CUNA) sent a letter to Senate Majority Leader Harry Reid (D-Nevada) and Minority Leader Mitch McConnell (R-Kent.) urging the senators to schedule the nomination of J. Mark McWatters to be a member of the National Credit Union Administration Board (NCUA) for consideration in the Senate.
“CUNA has not historically taken positions on presidential nominations, and we are not expressing a view on the merits of this nomination,” said CUNA president and CEO Bill Hampel. “Nevertheless, we believe it is critical that the Senate take action on the nomination because NCUA is beginning the process of finalizing a rule that will have substantial impact on credit unions and their ability to serve their members…Our concern is that if the Senate does not act on his nomination soon, he may not have sufficient time on the Board to be properly informed and engaged prior to a vote on the final rule.”
President Obama announced his intent to nominate McWatters to the NCUA Board in December 2013.
See the full text of the letter:
The Honorable Harry Reid
Majority Leader
United States Senate
Washington, DC 20510
The Honorable Mitch McConnell
Minority Leader
United States Senate
Washington, DC 20510
Dear Majority Leader Reid and Minority Leader McConnell:
On behalf of the Credit Union National Association (CUNA), I am writing to urge you to schedule the nomination of J. Mark McWatters to be a member of the National Credit Union Administration Board (NCUA) for consideration in the Senate. CUNA is the national trade association for America’s state and federally chartered credit unions, representing more than 6,200 credit unions and their 99 million members. We appreciate your consideration of our views.
CUNA has not historically taken positions on presidential nominations, and we are not expressing a view on the merits of this nomination. Nevertheless, we believe it is critical that the Senate take action on the nomination because NCUA is beginning the process of finalizing a rule that will have substantial impact on credit unions and their ability to serve their members.
Of critical concern to credit unions and many Members of Congress is NCUA’s proposed rule on risk-based capital. More than three-quarters of the Members of the House of Representatives have weighed in with the NCUA regarding this proposal; they have been joined by more than a dozen Senators and former Senators, including Senate Banking Committee Chairman Johnson, Ranking Member Crapo and former Chairman D’Amato. Their concern and ours is that NCUA may have overstepped its statutory authority in the rule and, further, that a consequence of the rule, if implemented as proposed, would be to reduce credit availability from credit unions, making it more difficult for some credit union members to receive loans, particularly residential, business and agricultural loans.
Mr. McWatters has been nominated to replace NCUA Board Member Michael Fryzel, whose term has officially expired, although he is permitted by law to continue in office until the Senate acts. His service on the NCUA Board and, in particular, his participation in this rulemaking has been commendable. Nevertheless, because the complexity of the proposal and the significance of its potential impact on credit unions and their ability to serve their members is so great, it is in the best interests of the communities credit unions serve to ensure that the NCUA Board members who will vote on the final rule be involved in the rulemaking process to the greatest extent possible. To be clear, we do not know how Mr. McWatters may view the proposed rule or what suggestions for changes he may bring to the process; we have had no contact with him on any substantive issue or concerning his confirmation. Our concern is that if the Senate does not act on his nomination soon, he may not have sufficient time on the Board to be properly informed and engaged prior to a vote on the final rule.
We are not aware of any opposition to Mr. McWatters’ confirmation, and we urge the Senate to take action on the nomination as soon as possible.
On behalf of America’s credit unions and their 99 million members, thank you for your consideration of our views.
Sincerely,