Four critical regulatory issues

Mary Dunn: Topping the regulatory agenda are regulatory restructuring, top-level changes at NCUA, examination issues, and corporate CU issues.

CUNA Deputy Counsel Mary Dunn outlined four critical regulatory issues for credit unions during a morning breakout session Wednesday:

1. Regulatory restructuring. The proposed Consumer Financial Protection Agency is a “glass half empty, glass half full scenario,” Dunn said. “The fact that the agency is on the drawing board gives credit unions an important opportunity to be at the table and negotiate the best deal for credit unions.”

It has serious implications as Congress addresses the full length and breadth of regulations that will be implemented. She noted that the proposal would give the Fed more authority over payment and settlement systems, which are not under regulatory oversight. Corporate credit unions could be swept into this. Corporates have a raised level of systemic risk, but for now, aren't under the proposal. The present proposal doesn't seek to include NCUA.

2. Top-level changes at NCUA. The nomination of Debbie Matz as NCUA chair has been sent to the Senate. “Every time we get someone new, there are changes. We'll be on the lookout for new agendas," Dunn said.

3. Examination issues on the horizon. Dunn says credit unions aren't as much concerned about the substance of the examinations as about the methodology used in insisting on a particular course of action. NCUA’s newly issued letter is “very positive in reinforcing that examiners want to work with credit unions that are in more difficult positions on net worth because of the stabilization process.”

4. Corporate credit union issues. Credit unions are being asked to help determine what the future corporate credit union system should be. It’s owned by credit unions, which means they “share in good times and share in the bad. Implementation of new legislation directs that the costs of the corporate system stabilization spread out.” Credit unions are encouraged to talk to their leagues and CUNA.

Dunn noted there's a task force on the issue and said CUNA is working jointly with the National Association of Federal Credit Unions to present ideas to NCUA.