Legislative Amendment Could Delay Risk-Based Rule
Doug Fecher, president/CEO of the $2.8 billion Wright-Patt Credit Union, asked a congressional subcommittee on Tuesday to amend a proposed bill in an effort to delay the implementation of the NCUA’s risk-based capital rule.
“We request the subcommittee amend H.R. 4042 to include NCUA among the agencies conducting the joint study and to delay the implementation of the NCUA’s proposed rule until an appropriate period of time after the study has been conducted,” Fecher said in his testimony, on behalf of CUNA, before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.
The proposed legislation, the Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014, would direct federal banking agencies to conduct a study of appropriate capital requirements for mortgage servicing assets for nonsystematic banking institutions.
David Clendaniel, president/CEO of the $401.8 million Dover Federal Credit Union, testified on behalf of NAFCU.
He also called on the subcommittee to support the Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014.
“NAFCU believes this is an appropriate vehicle to include a similar analysis be done by NCUA pertaining to their proposal,” Clendaniel said.
“NAFCU would support suspending NCUA action on the risk-based capital proposal until such a study is done, delivered to Congress, and reviewed by lawmakers and the public,” he added.
Fecher, shown at left, also told the subcommittee CUNA supports H.R. 3374, the American Savings Promotion Act, which gives parity to financial institutions wishing to offer raffle-based prize linked savings accounts to their members or customers.
He said credit unions in some states, including Washington and Michigan, have seen positive results from offering these accounts to members.
Fecher and Clendaniel said the subcommittee members should support a proposed bill that would amend federal banking statues, including the Federal Credit Union Act, as a way to end Operation Choke Point.
“Financial institutions should not be put in the position of policing those whom they serve,” Fecher said.