At the risk of exposing myself as a scatterbrain, I couldn't settle on just one topic for this week's column, so I'm going to hit you with a throng of subjects.
First, I can't say I'm surprised the NCUA Board decided to move forward with the changes to implement the data collection recommendation from the Outreach Task Force report, or the 2-1 vote. The wheels were set in motion when NCUA Chairman JoAnn Johnson was unable to quantify credit union service to the underserved at the now infamous November 2005 Ways & Means Committee hearing. It was a weak spot for the agency.
So NCUA staff completed its report over the following year, and the agency formed the task force, headed by Board Member Gigi Hyland, to gauge industry response to the staff report. Despite opposition to collecting the data on serving the underserved, the agency is moving forward with it without a formal comment period and rule. After two years of commenting, I think the credit union industry has had its say. And the agency would be unwise to open up what boils down to amending the 5300 Call Report to notice and comment.
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Since the collection of the information is simply going to mean a few extra boxes on the call report, it shouldn't be burdensome as some had feared. There is still a concern for what the information will be used for and who will be able to access it. Whether the American Bankers Association would be able to obtain it for its own purposes remains to be seen. Also, will Congress seek out full reports on credit union activities to serve the underserved and low-income households? Credit unions consistently outdo banks, which are subject to the Community Reinvestment Act, according to Home Mortgage Disclosure Act data, so they ought to come out looking pretty good.
The real doozie is going to come when the executive compensation disclosures are up for a final decision.
I was surprised when the equal opportunity complaint against CUNA came across my desk more than a year ago. I've worked with the Washington, D.C., office staff extensively during my eight years here, and I've always found them to be, in addition to hard-working, classy. I'm truly shocked that this happened under Dan Mica's watch; I've been told, in a different context, that he does not even like cussing in the workplace.
In our reporting of Miller vs. CUNA (see story page 1), I was torn in how far to go into the details of the decision recommendation, which vividly outline the examiner's view of what occurred based on in-depth briefs and a hearing. Know that we are not going for shock value, as there was much more in the examiner's decision, but to provide our readers context in the matter.
Credit unions should ensure they have streamlined and open lines of communication. One of our reporters recently tried to contact a credit union CEO. At the end of a slew of people the reporter was passed off to was a branch manager. When the reporter asked to speak to the CEO, she was told by the branch manager he did not have the CEO's contact information.
Our reporter was resourceful and persistent and eventually did get in touch with the CEO, but this is a ridiculous scenario that does not make for good media relations. Imagine the members who may have been put through this rigmarole! (And I'm not a fan of exclamation points.) I also can't imagine why the CEO's phone number would be kept so top secret.
The other thing about calling businesses, including credit unions, that drives me nuts is the automated phone systems that offer options that just don't quite fit what you're trying to do. You aren't sure what to push and there isn't a living breathing human being to be found. These experiences do not exemplify the people helping people philosophy credit unions portray.
As credit union conference season kicks into high gear, Credit Union Times is working to give our readers the flavor of the conferences you might have missed. So far this year, we have attended conferences hosted by CUNA, the American Credit Union Mortgage Association, the National Association of Credit Union Service Organizations, WesCorp, state leagues and other organizations. Credit Union Times is a monthly fixture at NCUA Board meetings to provide on-site coverage and get a real sense of the mood in the room.
There are many more events to come as the summer heats up, and we'll continue to present you, our readers, with unbiased, independent coverage of the events the credit union industry has to offer.
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