NCUA Chairman Debbie Matz pitched the need for the NCUA to gainauthority over credit union vendors Thursday when she introduced aninteragency rule during the regulator's monthly board meeting.

The proposed rule would implement minimum requirements for stateoversight of appraisal management companies.

“We face a regulatory blind spot. NCUA can approve thisinteragency rule, which would strengthen regulation of appraisalmanagement companies and should help prevent conflicts of interest,but we are unable to enforce it,” Matz said.

“NCUA remains the only financial services regulator lacking thenecessary authority to examine vendors for safety and soundness andcompliance with laws and regulations. NCUA will continue to call onCongress to provide this authority,” she added.

According to the NCUA's Strategic Plan 2014 – 2017, gaining theauthority to regulate, examine, and take enforcement actionsagainst vendors and CUSOs isa top priority for the agency. The strategic plan said acquiringthe new authority would put NCUA on the same footing as many otherfederal financial regulatory agencies.

“The NCUA does not have the legal authority to examinethird-party vendors, and we continue to question its push in thisarea. Credit unions already perform extensive third-party duediligence, which is already a focus of NCUA examinations and isconducted in accordance with NCUA guidance,” said MichaelColeman, NAFCU director of regulatory affairs.

The proposed interagency rule, part of the Dodd Frank Wall Street Reform and Consumer Protection Act,“would apply to states that elect to establish an appraisercertification and licensing agency with the authority to registerand supervise AMCs,” according to the board action memo presentedat the meeting on Thursday.

The other federal regulators proposing the rule with the NCUAinclude the Federal Reserve, CFPB, Treasury Department, FDIC,Federal Housing Finance Agency and Office of the Comptroller of theCurrency.