Hood Notes Agency’s Regulatory Relief Efforts During Senate Banking Testimony, House Financial Services Hearing Today

NCUA Chairman Rodney Hood noted during his testimony before the Senate Banking Committee yesterday that the NCUA is working diligently to reduce regulatory burden on credit unions to ensure that they can continue to grow and thrive, and also that it is reviewing its approach to guidance.

This morning the House Financial Services Committee will hear from Hood, Comptroller of the Currency Joseph Otting, FDIC Chairman Jelena McWilliams and Federal Reserve Vice Chair for Supervision Randal Quarles, the same panel that testified at yesterday’s hearing.

CUNA President/CEO Jim Nussle wrote in a letter to Senate Banking Committee leadership in advance of Hood’s scheduled appearance that NCUA should take steps toward enhancements to the credit union charter, while improving cybersecurity efforts and reducing regulatory burden.

“In the recent past, the credit union industry has focused its advocacy efforts on enhancements to the credit union charter. Therefore, we urge the agency to take steps toward this objective, which may include collaborating with parties outside NCUA,” Nussle’s letter reads. “Concern over cyber and data security is likely the single biggest issue currently facing most industries, including financial services. We appreciate NCUA’s recognition of the importance of this issue and its commitment to make it a focus area.

“We ask the agency to outline its short- and long-term strategy for ensuring credit unions and the agency are well positioned to avoid unauthorized loss of information through both cyber and general data breach threats… we ask the agency to provide a roadmap of both the concrete and policy approaches it will commit to in order to reduce the ever-increasing regulatory pressures on our nation’s credit unions,” Nussle adds.

CUNA and the state league’s continue to strongly support NCUA’s current status as an independent regulator and insurer but urge NCUA to coordinate with other regulators as needed, including with the Consumer Financial Protection Bureau (CFPB) on consumer protection regulations and the Federal Communications Commission (FCC) on modernization of the Telephone Consumer Protection Act.

CUNA also highlighted recent positive actions by NCUA and expressed hope that the agency builds on the positive momentum on things like extended exam cycles, streamlined and virtual examinations, modernization of the call report, field-of-membership litigation and others.