Capital Reform, NCUA Administration Reform Remain Top NASCUS Priorities
VAIL, Colo. - It's a new year and NASCUS has a new chairman and Council chairman, but several of the association's priorities still head up its `to do' list. Others have been added. Speaking with Credit Union Times the day before they took office as the new chairman of NASCUS...
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VAIL, Colo. – It’s a new year and NASCUS has a new chairman and Council chairman, but several of the association’s priorities still head up its `to do’ list. Others have been added. Speaking with Credit Union Times the day before they took office as the new chairman of NASCUS and chairman of the NASCUS Council, respectively, Roger Little, deputy commissioner, Michigan Office of Financial and Insurance Services, and Mike Litzau, president/CEO, Colorado Central CU in Arvada, said NASCUS has a full slate of priorities for the year ahead, some of which have been on the table for a while. With an increasing number of state-chartered credit unions facing taxation challenges, especially the Unrelated Business Income Tax and corporate tax, Little said NASCUS intends to remain vigilant on this issue. NASCUS, along with CUNA, the American Association of Credit Union Leagues (AACUL), and CUNA Mutual recently established a coalition the plans to meet regularly on UBIT. Its strategy includes administrative remedies, litigation if necessary, and possible legislative fixes. Also at the top of NASCUS’ priority list is reforming the administration of NCUA to require one of the board’s three members to have state regulation experience. Litzau pointed out that there is already a precedent for this – the FDIC Board of Directors is required by law to include one member with state supervisory experience. In fact, Tom Curry, commissioner of the Massachusetts Division of Banks has been nominated to one of five seats on the FDIC Board by President Bush and is awaiting confirmation hearings. “When you look at NCUA, they’re both a federal regulator and administrator of the share insurance fund. With 40% of federally insured credit unions being state-chartered credit unions, we believe state representation on the NCUA Board would help ensure the interests of all the owners of the NCUSIF are fully and fairly represented,” the NASCUS Council Chair said. NASCUS also still has its eye on capital reform, private insurance, and seeing member business lending authority expanded. “The alternative capital issue crosses charter lines because it’s both an insurance and safety and soundness issue,” said Little. Litzau said NASCUS “will continue to participate in the legislative campaign to achieve federal supplemental capital authority and to assure that the appropriate role of state law and regulation is recognized. NASCUS will also focus on state legislation and regulation needed to implement supplemental capital authority for state-chartered credit unions.” On MBL, NASCUS has no intention of giving up its efforts even though the reg relief bill that was reported out of the House Financial Services Subcommittee in April didn’t contain any language expanding CUs’ MBL authority. “NASCUS has always objected to the member business lending limitations in H.R. 1151. We have taken several action steps and will continue to work with CUNA, NAFCU, state leagues and NCUA staff to achieve the broadest possible MBL authority for state-chartered credit unions in the Federal Credit Union Act and NCUA regulations,” said Litzau. Little said NASCUS is not daunted by the length of time it often takes to implement regulatory changes. “Sometimes changes happen at a glacial pace,” he said. “We have to make sure when we work to have a regulation changed, that something important isn’t taken out at the same time something important is put in.” -
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