March 18, 2013 – NAFCU’s latest Economic & CU Monitor survey findings show that both NCUA and the CFPB are underestimating compliance costs, and that credit unions unanimously support regulatory relief.
The March newsletter, released Friday, found that a majority of respondents (55.5 percent) believe those agencies’ compliance cost estimates are either lower or much lower than actual costs. More than one-quarter of respondents (25.9 percent) indicated that the agencies’ published figures underestimate the actual costs by at least 25 percent, on average.
It is with these concerns in mind that NAFCU crafted its five-point plan for credit union regulatory relief. The plan calls for broad-based relief via enhanced administrative powers for NCUA, capital reforms, structural improvements for credit unions, operational improvements for credit unions and data security reforms.
Other key findings also reinforce the need for those measures:
- More than one-quarter of survey participants (26.6 percent) said their credit union has budgeted more for compliance personnel in 2013 than they spent last year, and zero respondents expect to spend less.
- Nearly three-fourths of respondents said their non-compliance staff members are being burdened with compliance-related duties.
- The current member business lending cap has discouraged many respondents from starting a commercial lending program – some noted that the cap has prevented them from hiring additional personnel dedicated to business lending.
Members are also encouraged to take advantage of NAFCU’s two newly released research reports: CU Performance Benchmark and CU Industry Trends. Both reports are quarterly and provided free as a benefit of NAFCU membership.