WASHINGTON (7/24/15)--CUNA President/CEO Jim Nussle reacted with disbelief at National Credit Union Administration Chair Debbie Matz comments Thursday that credit unions do not serve their members.
“I certainly hope that NCUA Chair Debbie Matz misspoke at the hearing today. If she didn’t, it’s outrageous that Chair Matz would tell Congress she does not believe credit unions represent their members under the respectful questioning of Reps. Scott and Mulvaney,” Nussle said. “I can’t believe I need to remind her that the nation’s credit unions are member-owned.”
Matz was testifying before the House Financial Services subcommittee on financial institutions and consumer credit on the NCUA’s budget and operations.
"If credit unions are asking NCUA to cut the budget, cut staff, and cut exam hours, they are not representing the best interests of their members--because their credit union and its members will ultimately have to pay for the losses of failed credit unions,” Matz said in a statement released after the meeting.
CUNA wrote to the committee in advance of the hearing, addressing a number of statutory changes Congress could make to help give credit unions much-needed regulatory relief. CUNA’s letter touched on the NCUA’s risk-based capital proposal, the agency’s budgetary process and supplemental capital, all topics touched on by the legislators.
Nussle also thanked the subcommittee members for holding the hearing, noting that “It’s critically important that the agency’s activities are in the best interest of credit unions and their members.”
Matz did express support for a number of pieces of legislation that would provide relief to credit unions, including bills that would help credit unions better navigate the cap on member business lending.
“We certainly support that legislation, and in risk-based capital proposal, we treat one-to-four residential units as consumer loans, rather than business loans, but that’s as far as we can go because of statute,” Matz said. “We would certainly welcome that relief.”
Other questions posed to Matz ranged from her thoughts on the overhead transfer rate calculation, the NCUA’s quest for third-party vendor authority and cash bonuses given to agency staff.