NAFCU response to NCUA Chairman Debbie Matz’s testimony before House Financial Institutions and Consumer Credit Subcommittee

WASHINGTON, D.C. (July 23, 2015) — National Association of Federal Credit Unions President and CEO Dan Berger  issued the following statement in response to testimony presented by National Credit Union Administration (NCUA) Chairman Debbie Matz before the House Financial Institutions and Consumer Credit Subcommittee.

“NAFCU and our members thank Chairman Randy Neugebauer for holding this hearing and we applaud Congress’ willingness to have a robust discussion about credit union issues,” said Berger. “We also appreciate Chairman Matz’s testimony because although NAFCU and our members may not always see eye- to- eye with NCUA on every issue, we have the common goal of maintaining the health and vibrancy of the credit union industry.”

In response to several questions during the hearing on NCUA’s budgeting process and credit unions’ call for greater budget transparency, Berger stated that “NAFCU strongly believes credit unions do a fantastic job of looking out for their member-owners, especially in an ever-increasingly difficult regulatory environment.”

“Based on today’s discussion,  NAFCU’s member credit unions  hope H.R. 2287, the ‘National Credit Union Administration Budget Transparency Act,’ sponsored by Reps. Mick Mulvaney, R-S.C., and Kyrsten Sinema, D-A.Z., which would require NCUA to provide notice of a public hearing on its budget and invite comments on it, will see swift action by the Financial Services Committee .”

“NAFCU and our members also hope that H.R. 2769, the ‘Risk Based Capital Study Act of 2015,’ sponsored by Reps. Stephen Fincher, R- T.N., Bill Posey, R- F.L., and Denny Heck, D-W.A., will continue to gain support, as today’s discussion about NCUA’s second risk-based capital proposal only underscores that a change as important as risk-based capital deserves the utmost scrutiny from both the agency and Congress.  Ultimately, NAFCU firmly believes that NCUA must withdraw the proposal and instead work with Congress to enact a true and fair risk-based capital system for the credit union industry.”

NAFCU also welcomed NCUA’s indication in its written testimony that the agency will solicit comments on the overhead transfer rate methodology every three years in conjunction with its public review of the NCUA’s strategic plan. “We appreciate the agency’s indication that it will solicit comment on its strategic plan including the OTR, but we believe NCUA should go further by submitting the OTR methodology through a formal comment period subject to the Administrative Procedures Act,”  said Berger.

The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance.

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