CUNA, NAFCU submit comments in advance of Otsuka testimony

CUNA and NAFCU wrote to the Senate Banking, Housing, and Urban Affairs Committee bringing awareness to critical credit union issues as it hears testimony from NCUA board nominee Tanya Otsuka. Otsuka--nominated in September to fill the seat of current board member Rodney Hood—will testify before the committee Thursday.

“Unlike other sectors of the financial services industry, credit unions embody the collaborative, people helping people philosophy,” the letter reads. “As such, we urge this Committee and the NCUA Board to work with the credit union industry to pursue an approach, both legislatively and regulatorily, aimed at ensuring credit unions can continue to serve their millions of members across the country.”

Other highlights of the letter include:

• Shared recommendations to enhance NCUA budget efficiency, including:
  • Preserving the strength of the share insurance fund without overburdening credit unions.
  • Continuing to pursue exam modernization efforts.
  • Reducing costs associated with MERIT and provide realistic estimates for completion and maintenance.
  • Providing greater transparency regarding cybersecurity expenses.
  • Continuing to support financial inclusion initiatives and engage in open communication and timely resolution of issues.
• Support for credit union parity with any deposit insurance reform proposals considered in the wake of recent bank collapses.
• Disagreement with suggested changes to the Federal Credit Union Act that would make certain changes to the way the board manages the National Credit Union Share Insurance Fund.
• Support for modernizing credit union fields of membership.
• Calling on Congress to ensure NCUA is “monitoring the broader interest rate environment” to determine whether the fixed cap should be increased beyond 18% to 21% prior to September 2024.