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The House Financial Services Committee today will hear from NCUA Chairman Todd Harper – as well as leaders from the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) – to explore oversight of the financial services industry and efforts to ensure consumers have access to safe, affordable products and services.

Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler raised concerns about some of the proposals that will be discussed during the hearing, including related to the NCUA's authority over third-party vendors as well as possible changes to the National Credit Union Share Insurance Fund (NCUSIF).

On the NCUSIF, Harper has asked Congress to make statutory changes to grant the NCUA more flexibility in charging premiums. NAFCU wrote to leaders of the House Financial Services and Senate Banking Committees earlier this year urging against any amendments to the Federal Credit Union Act that would change the way the NCUA manages the NCUSIF and explaining why a premium is not warranted at this time.

"The fact that the SIF has fared so well during the past 12 months provides ample evidence that the fund is strong and that credit unions were well-capitalized and had strong balance sheets entering the crisis," Thaler wrote. "This provided them with the necessary scope to extend assistance to their members during the pandemic…We caution against any calls for statutory changes to the SIF that go against the spirit of this provision of the Act – a provision that is designed not only to keep credit unions healthy, but also keep funds available to credit union members."

NAFCU has also consistently opposed efforts to grant the NCUA supervisory authority over third-party vendors, arguing that the added costs would take valuable resources away from credit unions' ability to serve their members.

In addition, the committee is expected to discuss NAFCU-supported legislative efforts to allow all credit unions to add underserved areas to their fields of membership (FOMs), repeal the OCC's true lender rule, make changes to the NCUA's Central Liquidity Facility permanent, and reform rules to establish new credit unions.

Harper is expected to address these issues during his testimony. NAFCU will monitor the hearing; stay tuned to NAFCU Today for developments.