June 27, 2014 – NAFCU attended NCUA’s first listening session in Los Angeles on Thursday, where NCUA Board Chairman Debbie Matz said the agency would reexamine the risk weights in its proposed risk-based capital rule. Matz also said a second comment period for the proposal is unlikely, but that they will take it “under advisement,” and that the implementation period for any rule would be longer than 18 months.NAFCU Director of Regulatory Affairs Mike Coleman and Regulatory Affairs Counsel PJ Hoffman both attended the session, which featured questions from credit union representatives on concerns related to NCUA supervision and regulation. NCUA Board Member Rick Metsger was also in attendance. More than a dozen NAFCU member credit unions were represented at the session.NAFCU Board Member and Caltech Employees Federal Credit Union President and CEO Richard Harris emphasized the need for a second comment period. CBC Federal Credit Union President and CEO Patrick Miller asked NCUA to revisit the definition of a complex credit union under the proposal.NCUA staff also told attendees that interest rate risk may be accounted for through means other than the proposed rule. Matz also noted that the agency supports supplemental capital reform – a key part of NAFCU’s five-point plan for regulatory relief – but does not see interest in such reform from Congress.NCUA staff indicated the agency may have a final rule by the end of the year.As NCUA considers next steps for this proposed rule, NAFCU will continue to press for significant changes, among them:
Given the recent comments from NCUA Board members regarding the significant changes that will be made to the rule before it is finalized, NAFCU continues to believe that NCUA should re-issue the proposed rule with any changes made using the input received from the comment period and these scheduled listening sessions. NAFCU will continue to seek comprehensive capital reform through a legislative solution.