ALEXANDRIA, Va. — NCUA Board Chairman Debbie Matz toldCredit Union Times that the time has come for home-basedcredit unions to move out of their homes.

Matz and Board Member Rick Metsger voted in support of aproposed rule that would prohibit FCUs from operating in homes.Board Member Michael Fryzel opposed the measure. The proposed rule includes a standard30-day public comment period.

More Video CUTs from Dec. 12Meeting:
Fryzel Says 'No' to Home-Based CU Restrictions
Metsger Explains His Positions

“The NCUA has a broad authority to implement this statuterequiring us to oversee safety and soundness in credit unions andit's not specific exactly in how we go about doing that but thiscomes under our broad authorities to regulate and insure creditunions,” Matz said in a video interview after the NCUA monthlyboard meeting on Thursday.

Matz said some home-based credit unions do not have emailaccounts or landline telephones, making it impossible for theirmembers or the NCUA to contact them without appearing inperson.

“We're concerned about the protection of the records. Sometimesthe records are kept in situations where they could accidently bedamaged for instance if there's a flood or some records are keptnear hot water heaters. They're not kept in fireproof containers,”she said.

Matz also expressed concern for the safety of the NCUA'sexaminers.

“I don't believe that examiners should be going into somebody'sprivate residence to examine their books. We've had examiners whohave been bitten by dogs. We've had examiners working in conditionswhere they can't control the thermostat so it's very cold inwinter, very hot in summer. In some cases, they're not allowed touse the restroom at the home,” she said.

“I would not want to work under those conditions. I don't knowanybody else who would and we shouldn't impose those conditions onour examiners,” she said. “So there are two very distinct reasonswhy I think it's time for home-based credit unions to move out oftheir homes and move into accessible commercial facilities.”

Matz said home-based FCUs could also move into a communitycenter, a church or a non-profit organization.

Court documents revealed that NCUA examiners found 10,000 roundsof ammunition and semi-automatic weapons in a storage room duringtheir seizure of the $23.6 million Taupa Lithuanian Credit Union inCleveland earlier in the year.

Credit Union Times asked Matz if the NCUA coordinateswith local police departments when seizing a credit union orattempting to access important documents.

“We don't coordinate in advance but of course in situationswhere the examiner feels that here's a threat, at that point we docall in the local authorities and sometimes the nationalauthorities,” she said. “There's been instances where we've calledin the FBI or the Secret Service but on a routine basis, we do notcoordinate with local authorities before going into aninstitution.”

Matz was also asked why a risk-based capital rule was not included on the agenda for the December boardmeeting.

“This is a very complicated rule and we want to be sure to getit right. The idea will be to risk rate the capital so creditunions that are holding riskier capital on their books will have tohold higher capital levels,” Matz told Credit UnionTimes.

“It's very complicated. The staff has been working diligently onit and they simply needed more time and we encouraged them to takethe time that they need because we want to make sure they do get itright.”

Watch the full video with Matz above.