Sarah Vega, J. Mark McWatters’ senior policy advisor, and Katie Supples, McWatters’ executive assistant, have resigned from the National Credit Union Administration. NCUA officials have declined to address McWatters’ ouster. CUNA and NAFCU gave statements on McWatters’ service.
The incoming Biden Administration must “urgently” act to reverse the Consumer Financial Protection Bureau’s payday lending and debt collection rules, the government watchdog group, Accountable.US said last week. “Over the course of the past four years, the Trump administration has enacted corrupt and harmful policies across environmental, immigration, economic, and many other issues for special interests, many with close ties to the Trump administration, that will negatively impact generations of Americans,” the group said, in announcing the first five rules it wants the administration to overhaul. “To help reverse the damage done, we’re tracking key policies that the next administration
J. Mark McWatters was forced off the NCUA board Friday, November 20. Thursday he told Chairman Rodney Hood he would not support the proposed 2021 budget. Friday he was given the option of resigning or being removed by the White House according to a source familiar with the situation.
At the National Credit Union Administration board meeting, Todd Harper and J. Mark McWatters indicated they oppose the 2021 budget proposed by Chairman Rodney Hood. Under normal circumstances, that would keep the proposed budget from passing. However, the Senate is preparing to vote on McWatter’s replacement before the December meeting when the budget will be considered.
At its November 2020 board meeting, the National Credit Union Administration board approved a rule to allow credit unions to capitalize interest in connection with loan modifications made due to the pandemic, discussed the probable need for credit unions to pay a premium because the Share Insurance Fund equity ratio may fall lower, heard a report on the 2019 credit union diversity assessment, and Harper and McWatters indicated they opposed Hood’s proposed budget for the agency. The NCUA board may change by the December meeting as the nomination of Todd Harper is showing some movement in the Senate.
The Trump Administration wants to delay the court-ordered release of all data for businesses that received Paycheck Protection Program loans and funds from the Small Business Administration’s Economic Injury Disaster Loan program.
Under an order issued by U.S. District Judge James Boasberg, the Small Business Administration is required to release that data by tomorrow, Nov. 19.
At its meeting on November 19, the NCUA Board will consider a proposed rule that would allow credit unions to capitalize interest on consumer mortgage loan modifications. The board will also hear reports on the status of the Share Insurance Fund, the agency’s diversity assessments, and the agency’s proposed 2020 budget.
Consumer Financial Protection Bureau officials say they are suspending a reorganization plan that had been blasted by Sen. Sherrod Brown and 83 consumer groups as weakening the agency. It is expected that Biden will replace the current director with one more interested in a strict regulatory approach.
Former Sen. Roger Jepsen (R-Iowa), who chaired the National Credit Union Administration board from 1985 to 1993, died Friday in Bettendorf, Iowa. He was 91. President Reagan nominated Jepsen as NCUA chairman after Jepsen was defeated by former Democratic Sen. Tom Harkin. Jepsen “was well-liked and respected in the credit union community,” NCUA Chairman Rodney Hood said. NCUA officials noted that Jepsen led the agency during a period of great change, which included the conversion of more than 400 state-chartered credit unions to federal insurance coverage, as well as the adoption of the CAMEL rating system. Jepsen also chaired the
The NCUA announced its proposed operating budget for 2021. They will hold a hearing on the plan December 2, comments are due by December 11 and the board will vote on the plan at its December meeting.