Newsroom
March 18, 2015
Bosma-LaMascus: NCUA's RBC2 is unnecessary and costly
NAFCU witness Peggy Bosma-LaMascus, president and CEO of Patriot Federal Credit Union, told the House Financial Services Committee on Wednesday that NCUA's second proposal on risk-based capital is unnecessary, has a two-tier standard that exceeds NCUA's authority and will take potentially millions of loan dollars out of play to address compliance.
Bosma-LaMascus was responding to a question from Rep. Bill Posey, R-Fla. Wednesday's hearing was the second in two months in which NAFCU has urged lawmakers to address onerous constraints of current rules and take action to reduce the proliferation of new ones.
During her opening testimony, Bosma-LaMascus emphasized that credit unions have a long history of helping the economy grow, even during the recent financial crisis, yet they remain highly regulated and are restricted in their ability to provide services and build capital. She pushed the provisions of NAFCU's five-point plan for credit union regulatory relief and gave special attention to RBC and the need for expanded member business lending authority, improved field-of-membership rules and, among other things, improvements in CFPB rules and structure.
During the hearing, Rep. Ed Royce, R-Calif., announced that he and Rep. Jared Huffman, D-Calif., reintroduced NAFCU-supported legislation, H.R. 1422, the "Credit Union Residential Loan Parity Act," to exempt loans to purchase non-owner-occupied, one- to four-unit dwellings from credit unions' federal statutory cap on member business lending.
When asked by Royce if this bill would help increase credit availability for businesses and rental housing, Bosma-LaMascus said her credit union is planning to begin providing member business loans and that this bill will be helpful.
Data security was also addressed. Responding to comments by Reps. Dennis Heck, D-Wash., and Brad Sherman, D-Calif., Bosma-LaMascus said her credit union has seen a $42,000 loss on reissuing debit and credit cards and related costs in the last handful for retailer data breaches.
Also covered during the hearing was CFPB's qualified mortgage rule. Bosma-LaMascus told subcommittee Chairman Blaine Luetkemeyer, R-Mo., that if a member can't get a loan through her credit union because of this new rule, that member either can't get the mortgage or has to go to a non-trusted lender that will charge more.
Bosma-LaMascus was responding to a question from Rep. Bill Posey, R-Fla. Wednesday's hearing was the second in two months in which NAFCU has urged lawmakers to address onerous constraints of current rules and take action to reduce the proliferation of new ones.
During her opening testimony, Bosma-LaMascus emphasized that credit unions have a long history of helping the economy grow, even during the recent financial crisis, yet they remain highly regulated and are restricted in their ability to provide services and build capital. She pushed the provisions of NAFCU's five-point plan for credit union regulatory relief and gave special attention to RBC and the need for expanded member business lending authority, improved field-of-membership rules and, among other things, improvements in CFPB rules and structure.
During the hearing, Rep. Ed Royce, R-Calif., announced that he and Rep. Jared Huffman, D-Calif., reintroduced NAFCU-supported legislation, H.R. 1422, the "Credit Union Residential Loan Parity Act," to exempt loans to purchase non-owner-occupied, one- to four-unit dwellings from credit unions' federal statutory cap on member business lending.
When asked by Royce if this bill would help increase credit availability for businesses and rental housing, Bosma-LaMascus said her credit union is planning to begin providing member business loans and that this bill will be helpful.
Data security was also addressed. Responding to comments by Reps. Dennis Heck, D-Wash., and Brad Sherman, D-Calif., Bosma-LaMascus said her credit union has seen a $42,000 loss on reissuing debit and credit cards and related costs in the last handful for retailer data breaches.
Also covered during the hearing was CFPB's qualified mortgage rule. Bosma-LaMascus told subcommittee Chairman Blaine Luetkemeyer, R-Mo., that if a member can't get a loan through her credit union because of this new rule, that member either can't get the mortgage or has to go to a non-trusted lender that will charge more.
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