NAFCU members react to Matz speech

matz at ac
Debbie Matz speaks at NAFCU's Annual Conference and Solutions Expo in Las Vegas (Dietsch photo)

July 25, 2014 – Credit Union Journal interviewed attendees at NAFCU’s Annual Conference and Solutions Expo following remarks from NCUA Chairman Debbie Matz, and found many were still anxious about the agency’s proposed risk-based capital rule.

The paper spoke to One Nevada Credit Union President and CEO Bradley Beal: “[He] said he had three reactions: First, credit unions will have to ‘wait and see’ what types of fixes and/or changes NCUA makes to the proposed rule. Second, he echoed what many CU leaders have been asking for all along — a new proposed rule and an accompanying second comment period.

“‘Third, I want to know something I have not heard anyone from NCUA address, and that is how does all this trickle down to the member level? How does it affect auto loans? How does it affect mortgages? There are all kinds of potential impacts,’ “ the paper quoted Beal as saying.

The Journal also quoted NAFCU President and CEO Dan Berger saying the association “stands by” its estimation that the rule would cost $7 billion, which Matz disputed.

NAFCU former Vice President of Regulatory Compliance Steve Van Beek, now an attorney at Howard & Howard in Michigan, was also in attendance, and told the Journal: “The biggest concern is it feels as if NCUA did not do its homework up front. They did not talk to credit unions, and they did not talk to the trade groups – and there were offers.”

NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt reiterated the association’s call for a second comment period, and said, “NAFCU continues to be concerned with how the rule will affect credit unions' ability to lend. There needs to be a second comment period, and we need a final rule that does not harm the industry. There is a lot of work, and Chairman Matz mentioned some risk categories may be lowered, but there needs to be parity with banks.”

 

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