The week of July 9, National Credit Union Administration (NCUA) Chairman Debbie Matz and staff held a listening session in San Diego to provide credit union officials in the region an opportunity to communicate their concerns to the agency. She was accompanied by NCUA Executive Director Dave Marquis, Director of Examination and Insurance Larry Fazio, Region II Director Jane Walters, General Counsel Mike McKenna, and Director of the Office of Small Credit Union Initiatives Bill Myers.
Matz addressed a number of issues, many of which had been raised in previous listening sessions, such as concerns over examination practices. In response to a comment regarding the redundancy of combined state and federal exams, NCUA clarified that state regulator's - in this case the California Department of Financial Institutions - "examiner in charge" is the lead examiner during joint exams. In addition, the agency acknowledged the importance of proper coordination between state and federal exam teams.
Some of the other issues that were addressed included concerns regarding excessive issuance of Documents of Resolution, challenges regarding MBLs that are modified as Troubled Debt Restructurings, and the unique nature of community development and low-income credit unions. Further, the agency again stated its commitment to address the definition of "small credit union," which we have urged the agency to update to reflect an increase in the asset size of all financial institutions. NCUA also reiterated its changes to the processes for designating Low-Income Credit Unions, which has identified approximately 1,000 credit unions that are eligible to receive the designation.
Click here to register for NCUA's next and final listening session that will be held on July 31 in Denver, CO. Credit Union National Association (CUNA) staff will be attending this session and will provide a summary of the meeting in a Regulatory Advocacy Report.