The National Association of Federally-Insured Credit Unions and the Credit Union National Association comment on the combined economic stimulus bill and the FY21 appropriations bill that passed the House and Senate yesterday.
Republican Chairman Rodney Hood and fellow Republican Kyle Hauptman approved the NCUA 2021-2022 budget over the vehement opposition of Democratic member Todd Harper. Harper wanted additional staff to perform consumer protection exams. He also does not think the agency is preparing enough for the economic fallout that will come from the pandemic.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions question increases in the National Credit Union Administration budget.
At the National Credit Union Administration budget hearings, the National Association of Federally-Insured Credit Unions praised the NCUA for selling the taxi medallions it held. New York City officials are still seeking a way to assist the taxi drivers.
At the NCUA budget hearing, Todd Harper made it clear that he sharply disagrees with Chairman Rodney Hood’s budget proposal. Their main clash is over whether the agency needs to increase its consumer protection staff, with Harper arguing that more than one new staff position is needed. CUNA, NAFCU and NASCU also delivered comments on the budget at the hearing.
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.
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.
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.
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.
Rodney Hood, in testimony before the House Financial Services Committee, said that the Share Insurance Fund is healthy and defended the purchases of banks by credit unions.