PCUA Appeals to NCUA
The Pennsylvania Credit Union Association has formally added its voice to the industry chorus complaining about the NCUA assessment schedule urging the agency to use its legal discretionary power to spread out the expense.
The PCUA board recently adopted a resolution asking CUs be given time "to catch our breath" in between assessments in light of the economic pain.
"The association board recognizes that NCUA has discretion regarding the operating level of the National Credit Union Share Insurance Fund and it works to the benefit of all credit unions if NCUA utilizes that discretion," said the resolution issued by PCUA Chairman Ray Brunner.
"In this challenging economy, Pennsylvania's credit unions feel strongly that NCUA should use its discretion to minimize the negative impact of its assessments on individual credit unions," said Brunner, who also is president/CEO of West-Aircomm FCU of Beaver, Pa.
A spokesman said the PCUA leadership felt a need "to make a statement now about these assessments which keep coming" in light of the negative impact on the industry.
Both CUNA and NAFCU have also stressed the need to stretch out the assessment schedule.
A CUNA spokesman said the trade group "has been urging NCUA to lower the NCUSIF operating level to about 1.2%, which would reduce credit unions' insurance cost, and we have encouraged the agency to spread out credit unions' corporate stabilization costs over a longer period."
Mark Wolff, senior vice president-communications, said CUNA "supports efforts such as PCUA's to mitigate CU costs, especially in these tough economic times."