CUNA Kicks Off Due Diligence Push
WASHINGTON -- As NCUA puts a focus on CU relationships with third-party vendors, CUNA is launching an effort to help CUs cope with the increased attention and scrutiny. The agency previously announced that third-party vendor relationships would be a focus in examinations this year.
The association has announced the formation of a Due Diligence Task Force to guide the effort to collect information from CUs, investigate models CUs can use to conduct due diligence with different vendors, and act as a mediating body between CUs and NCUA.
CUNA General Counsel Eric Richard told reporters on Feb. 4 that since the number of vendors in a given area, such as ATMs, is limited, it may be possible to fairly easily find a model that CUs can use when doing due diligence with that vendor.
"If a credit union already has a relationship with that vendor and done a very good job on their due diligence, maybe we can use their experience and as model for going forward," Richard said.
Henry Wirz, president/CEO of SAFE CU in North Highlands, Calif., is chairing the group. It will report to CUNA's Board of Directors. Other members include:
-Bill Raker (vice chair), president and CEO, U S FCU, Burnsville, Minn.;
-Mary Ann Clancy, general counsel, Massachusetts CU League, Marlborough, Mass.;
-Tom Dare, associate general counsel, CUNA Mutual Group, Madison, Wis.;
-Charles Emmer, president and CEO, ENT CU, Colorado Springs, Colo.;
-Dave Fearing, vice president sales/services, Ohio CU League, Dublin, Ohio;
-Tom Gaines, president and CEO, Tennessee CU League, Chattanooga, Tenn.;
-Joseph Ghammashi, vice president and risk officer, Corporate One FCU, Columbus, Ohio;
-Debie Keesee, president and CEO, Spokane Media FCU, Spokane, Wash.;
-RoxAnne Kruger, senior vice president/business and member development, Washington CU League, Federal Way, Wash.;
-Erin Mendez, senior vice president, IS and Finance, Orange County Teachers FCU, Santa Ana, Calif.;
-Dave Osborn, president and CEO, Anheuser-Busch Emp. CU, St. Louis, Mo.;
-Earle Pierce, director/internal audit, Community First CU of Florida, Jacksonville, Fla.;
-Lisa Pleasure, director/internal audit, CommunityAmerica CU, Lenexa, Kansas;
-John Sackett, board chair, Royal CU, Eau Claire, Wis.;
-Christina Vaughn, compliance officer, Municipal ECU of Baltimore, Baltimore, Md.
"Members of the task force have extensive background, experience and knowledge about due diligence issues," said Richard. "With NCUA placing a specific focus on due diligence issues in 2008, we believe that this group, by pooling information, would be an effective and efficient resource for credit unions in responding to the agency's concentration."