CUNA congratulated newly sworn-in NCUA Chairman Rodney Hood and board member Todd Harper Monday and sent letters to the new board members detailing several important credit union issues. Hood was named chairman of NCUA by President Donald Trump Monday and Harper will join former Chairman J. Mark McWatters to form a full, three-person NCUA board for the first time since April 2016.
“We congratulate Rodney Hood on being named NCUA chair and thank former Chair McWatters for his service to credit unions during his time as chairman. We believe it is critical for the effective operation of the agency that the Board be filled by three members,” said CUNA President/CEO Jim Nussle. “As such, we believe a full Board will be most able to address the varied issues facing the credit union industry.”
CUNA continues to strongly support NCUA’s current status as an independent regulator and insurer, the letters say, and hopes Hood and Harper will “commit to prudent stewardship of the credit union resources put in the agency’s trust.”
This includes the hope from CUNA that NCUA will commit to returning the normal operating level to 1.3%, down from the current 1.38%. The current elevated level is due to the merger of the Temporary Corporate Credit Union Stabilization Fund and the National Credit Union Share Insurance Fund.
CUNA also highlighted recent positive actions by NCUA and expressed hope that the new Board members will work to build on the positive momentum. This includes working on extended exam cycles, streamlined and virtual examinations, modernization of the call report, field-of-membership litigation and others.
The letters note areas in which the agency could improve, including additional analysis of its risk-based capital rule and a more “proactive and collaborative” strategy to ensure credit unions are prepared for the current expected credit loss standard.
They conclude by urging NCUA to continue its coordination with other regulators, including the Consumer Financial Protection Bureau.