WASHINGTON — Congressman Patrick McHenry (R-N.C.) commented that lobbying has gotten a particularly bad rap lately.

"Lobbying is all about protecting your right to exist," he stated during an address at America's Community Bankers' Government Affairs Conference last week. Like, for example, banks and a couple of credit unions lobbying to ease credit union conversions to mutual savings banks.

McHenry recounted an unnamed federal credit union regulator coming to his office and explaining that NCUA's objection to certain disclosure documents was not about how the paper was folded, but concern over the "order of presentation." He inquired of the regulator, "Isn't 'order of presentation' in this case about the fold?"

The legislator, who had introduced the Credit Union Charter Choice Act in the 109th Congress to curb NCUA authority in conversions, stated before the group of about 150 bankers, "It was an absolutely fascinating display of regulatory incompetence…This absolutely enraged me." As a self-described "small government" Republican, McHenry said he wants government to regulate "efficiently, effectively or not at all."

ViewPoint Bank CEO Gary Base, formerly Community Credit Union, stood up during McHenry's remarks and thanked him for his support during their conversion.

But credit unions have a full comprehension of lobbying as a duty and a sure sense of the industry's grassroots power. McHenry noted that at the time credit unions turned out as many people for one of his town hall meetings as ACB did for its GAC. He previously told Credit Union Times (See CU Times, Feb. 28, 2007, page 1) that the revised rule is a good step, but he still has reservations.

However, before reintroducing his legislation, he wants to see NCUA's latest conversion regulation update in action. Beehive Credit Union will be the test case (See related story, page 1-35). McHenry stated, "If legislation is necessary as a result of this, I'll be there front and center on this."

On another legislative matter of importance to lenders, McHenry said he feels there is no need for predatory lending legislation because "the marketplace will sort these things out best." He added that regulators are already taking action on predatory lending and financial institutions are better off that way. In his home state of North Carolina, where predatory lending legislation is in place, he said it keeps capital out of the marketplace and warned that his Democratic colleagues from the state want to adapt the standard at the national level.

McHenry cited the Center for Responsible Lending and its CEO Martin Eakes, also CEO of Self-Help Credit Union, as the ones who "wrote" the North Carolina law. McHenry advocated that it would harm homeownership rates. —scooke@cutimes.com