NCUA Chair Calls for Regulatory Expansion and Streamlining
WASHINGTON — Saying that her goal is to “target risky behaviors in credit unions, not credit unions themselves,” NCUA Chairman Debbie Matz on Sept. 19 announced that the agency will beef up certain safety and soundness regulations but ease up on others.
Later this fall, the agency plans to issue a proposed rule mandating loan originators to keep some risk on their balance sheets and require loan buyers to increase due diligence, she said during a speech to NAFCU's Congressional Caucus.
The agency also wants less than adequately capitalized state-chartered federally insured credit unions to get permission from their regulators before making investments in a CUSO. The proposed rule requires CUSOs to use GAAP accounting, prepare quarterly financial reports and get annual audits.
Matz also noted that the proposed rule mandating credit unions to devise interest rate risk management plans was needed to protect the credit union system’s safety and soundness.