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NCUA's pursuit of examination authority over credit unions' third-party vendors is a costly proposition that seems unnecessary given the agency's current authority to thoroughly regulate credit unions and their third-party relationships, NAFCU's Alicia Nealon says in a letter to the editor in Credit Union Times Tuesday.

NCUA Chairman Debbie Matz, in an interview reported on by CU Times Feb. 20, said NCUA needs vendor exam authority more than ever due cyber threats. But NAFCU doesn't see a direct connection between the two, Nealon, NAFCU's director of regulatory affairs, wrote.

"As we have consistently maintained, NAFCU believes the agency's bid for third-party vendor examination authority is unnecessary given that NCUA is already authorized to thoroughly regulate credit unions and their third-party relationships," writes Nealon. "Further, NAFCU questions NCUA's choice to prioritize this request on its legislative agenda, and we firmly disagree with NCUA's assertion that such authority would provide any regulatory relief for credit unions."

Nealon said such added authority for NCUA would add to credit unions' regulatory burden and do nothing to enhance the industry's safety and soundness. Moreover, she said, NCUA hasn't explained what added resources would be need to carry out such authority. "NAFCU believes such authority will require considerable expenditure of the agency's resources and time," she notes.