ALEXANDRIA, Va. (5/29/12)—In a meeting with senior Credit Union National Association (CUNA) staff urging regulatory relief for credit unions, National Credit Union Administration board member Michael Fryzel indicated there are no new rules on the NCUA's horizon, except for ones already proposed, such as those addressing loan participations and credit union service organizations (CUSOs).
CUNA President/CEO Bill Cheney reiterated CUNA's concerns with both pending proposals, which the trade group has called "regulatory overkill" and urged the agency to drop or change significantly. Both proposals would introduce unnecessary limitations, CUNA has told NCUA, which "would add to the regulatory burden of affected credit unions in a manner that is wholly disproportionate to the risks associated" with the governed activities.
CUNA has urged a more targeted approach for the CUSO rule than exists within the proposal's existing parameters, and Fryzel at the meeting said he wanted to see any future NCUA regulations targeted to address a specific risk or risks and rules should be written in plain English so that credit unions have a clear understanding of their responsibilities.
Fryzel encouraged CUNA and credit unions to weigh in with further ideas for regulatory relief. He reiterated that credit unions are having a good year and while the NCUA must address any problem areas, it should not interfere with sound credit union operations.
In addition to Fryzel and Cheney, those participating in the meeting were NCUA Senior Policy Advisor Sara Vega, CUNA General Counsel Eric Richard, and CUNA Deputy General Counsel Mary Dunn.
Dunn said after the meeting that · CUNA will be following up with future meetings with Fryzel and Vega.
Use the resource links to read more on the NCUA proposals addressing loan participations and CUSOs.