August 24, 2014

Hunt, in report, notes potential impact of Congress' interest in RBC

Aug. 14, 2014 – Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel, told a trade publication this week that lawmakers' marked interest in NCUA's risk-based capital rule underscores the need to ensure any final rule is the right one.

Quoted in a Credit Union Journalstory that focuses on the interest shown in both the House and Senate on the proposed rule, Hunt said, "Whenever you have the vast majority of the House of Representatives and a critical mass of senators concerned over a rule, then the question has to be ‘If we don't get this rule right, what happens?' Congress can step in and put something into the statute."

Hunt and others quoted for the piece indicated such action could limit NCUA's flexibility in future rulemaking.

"NCUA should want as much flexibility as possible so they can be more nimble and react to regulatory issues as they arise," Hunt is quoted saying. "If we end up with a statutory change to correct a rulemaking, and that could potentially be where this ends up … that would not benefit anyone."

A key source for this story is former NCUA Board Chairman Dennis Dollar, who is quoted saying Congress' current interest in the rule will likely lead to major changes from the proposal and perhaps a second comment period. The story also quotes comments about likely revisions by NCUA's current chairman, Debbie Matz, during NAFCU's Annual Conference last month in Las Vegas. Matz so far has said she doubts there will be a second comment period before NCUA issues a final rule.

NAFCU has urged that given the number of areas where NCUA has said revisions are likely, the best route would be to put a second proposal out for public comment so credit unions can review its potential impact.