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May 13, 2013 - NAFCU wrote to NCUA Friday to air concerns about the impact of outside counsel costs on the agency's budget - which credit unions fund - and its proposal to increase the amount of data it collects on the Credit Union Profile and 5300 call report.

PJ Hoffman, NAFCU's regulatory affairs counsel, urged NCUA to be transparent and to disclose the information it collects from prospective outside legal counsel regarding fees, costs and expenses that a firm might charge for handling the agency's legal matters.

NCUA has invited comments on the forms it proposes to use to collect the data. Hoffman said NCUA should keep in mind the need to carefully marshal the funds it receives from federally insured credit unions to carry out operations. "It is imperative that NCUA implement an efficient process for choosing outside counsel that puts an emphasis on cost effectiveness," he wrote.

Tessema Tefferi, NAFCU's senior regulatory affairs counsel, urged NCUA to be mindful of the burden on credit unions of its proposal to expand its data collection through the Credit Union Profile and 5300. NCUA has proposed changes that would take effect in June.

NCUA wants credit unions to report the names of their audit firms on the Credit Union Profile and to answer questions about their own diversity policies. Tefferi said NCUA should forego the first item unless it can offer justification for collecting it. Regarding diversity policies, he said that information is available without adding to credit unions' reporting burdens.

He also urged clarifications to the 5300 instructions.