WASHINGTON - The groundswell of discontent and controversy among credit unions concerning critical business, charter conversion and field-of-membership issues has been building for more than a year and the noise level is getting louder. The CUNA Board has approved the formation of a credit union commission to create a blueprint and explore legislative solutions to mitigate the situation, including recommending changes to the 1934 Federal Credit Union Act as modified by H.R. 1151. Christened the "Credit Union Renaissance Commission," the 18 to 24 member group will be made up of representatives from a cross-section of the credit union movement, including all sizes, charter types, geographic regions and probably volunteers. The objective is to get the broadest possible mix. Members of the commission will be determined within the next few weeks and the name of the person-a credit union CEO-to head the commission will be announced at that time too. Over a period of the next year or so, the commission will hold a series of congressional-type hearings on a wide range of topics and invite representatives from credit unions throughout the country to come before the commission and express their position on a particular issue. There will also be a Web site credit unions can use to send in their comments and suggestions. "The chain of the ideas and suggestions will move from the grassroots up," explained CUNA President/CEO Dan Mica. "Credit unions know best what they need. It will be up to the commission to prioritize the issues and determine what's politically feasible." CUNA also intends to invite the other credit union trade associations to offer their comments and suggestions and Mica said they'll all have an opportunity to have an input. He emphasized though that "the Credit Union Renaissance Commission is not a multi-trade commission, it is a CUNA initiative." CUNA has approved an initial $150,000 for the commission. Since the dues-based initiative was announced mid-year, CUNA spokesperson Mark Wolff said the expense will have to be built into the association's budget. "H.R. 1151 was never intended to create a new world for credit unions," said Mica. "It was lobbied for and passed in response to challenges from the banks." The Credit Union Renaissance Commission's objective is different. "Congress just passed H.R.10 for the banks, we need an H.R. 10 for credit unions," Mica said. "After H.R. 1151 was passed, we spent a lot of time making sure the provisions were the least onerous as possible. The time is now to prepare for further reforms," Mica said. Mica said the commission will throw a wide net out on issues it will consider. He noted there has been a disintegration in the value of the federal charter and more credit unions are converting to mutual thrifts. He's aware of credit unions' complaints about the limitations on investments and the use of the share insurance fund, and their increased dissatisfaction with NCUA. Anything and everything is open to discussion and Mica did not rule out the commission exploring an alternative to the dual chartering system. "The dual chartering system option of being able to go from one type of charter to another is important," he said. "But it's not inconceivable the commission will rethink the idea of the dual charter system." Leveraging his years of experience in Congress, Mica warned credit unions not to naively think that any credit union-related reform legislation proposed in Congress will move as quickly as The Credit Union Membership Access Act did. "The credit union movement has come to believe that passage of all bills can be accomplished with the speed that H.R. 1151 passed. In fact, major pieces of legislation take years of groundwork and education to pass," he said. Mica also cautioned credit unions not to get over-anxious to charge up to Capitol Hill to introduce legislation. "This is not a call to rush to the hill for legislation," he said. "We're not ready for that." -
ekingoff@cutimes.com
