NCUA Board Member Todd Harper mentioned Wednesday that the NCUA would have been “higher served” if the company had given New York Metropolis officers time to type a public-private partnership to buy taxi medallion loans the company holds.
Harper advised these attending CUNA’s Governmental Affairs Convention that now that the company has determined to promote the loans to a personal entity, he can be watching fastidiously to make sure that the purchaser follows client safety necessities.
Company officers final week, a lot to the consternation of beleaguered taxi drivers and medallion homeowners, mentioned that they deliberate to promote the loans it holds to Marblegate Asset Administration, a hedge fund.
Harper additionally advised these attending GAC that he’ll proceed to push for the company to extend its general client safety efforts.
“The NCUA board ought to create a devoted program for supervising for compliance with client monetary safety issues,” Harper mentioned throughout his speech at GAC. “In doing so, we’ll higher safeguard member pursuits and be certain that the credit score union system lives as much as its dedication to serving members.”
Harper tried to fund such a program within the company’s 2020 finances, however that effort failed.
Harper additionally mentioned he’ll proceed to push for the company to have energy to oversee credit score union third-party distributors.
“Closing this regulatory blind spot would higher defend the credit score union system from cyber-threats and place the company on a extra stage enjoying discipline with the opposite monetary establishments’ regulators. It could additionally present a measure of regulatory aid,” he mentioned.
The NCUA’s different two board members even have endorsed that concept, however it might take congressional motion to broaden the company’s powers.
Harper additionally mentioned the NCUA ought to be certain that everyone seems to be counted when it determines whether or not a credit score union meets its low-income designation. He mentioned to that finish, the company ought to modify its guidelines to raised account for service members who reside on army bases within the U.S. and overseas.
Harper mentioned he has studied credit score union mergers and located that one of many two main causes for such mergers is a scarcity of succession planning.
He mentioned about one in 5 credit score unions lack CEO succession planning.
He mentioned he has seen knowledge indicating that a big proportion of credit score union executives are child boomers who can be a part of a retirement wave.
“With these retirements, flat budgets and tight labor markets, there’s a actual want for credit score unions of all sizes to concentrate on succession planning, particularly if we need to curtail credit score union mergers,” he added.