WASHINGTON—House Financial Services Chairman Jeb Hensarling’s (R-TX) plan for replacing the Dodd-Frank Act now includes expansion of the NCUA Board from three to five members.
Hensarling, releasing additional details in his outline to remove Dodd-Frank, also calls for establishment of a Credit Union Advisory Council at NCUA, advances legislation to require annual budget hearings at NCUA, and proposes new legislation to require greater transparency on NCUA’s overhead transfer rate (OTR).
NAFCU said it opposes a five-person NCUA board.
“NAFCU opposes adding new positions to the NCUA board, particularly for its potential impact on the agency’s budget and the fees credit unions pay to fund that budget through operating fee assessments,” the trade association stated.
Hensarling has previously said his draft legislation, dubbed the “Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act," would provide relief to community financial institutions, repeal the Durbin amendment on debit interchange and allow credit unions to appeal exam findings more easily.
NAFCU said it is strongly in favor of Durbin amendment repeal and other relief for credit unions from Dodd-Frank Act rules that were really intended to stop practices that contributed to the financial crisis.
The outline also lists removal of the CFPB director and the Treasury representative from the five-member FDIC board, leaving FDIC with five independent board members. The outline was silent on any additional restrictions of the expanded NCUA board, NAFCU reported.
In addition, the director position at CFPB would be replaced by a bipartisan, five-member commission.
NAFCU said it continues to review plan details for their potential impact on credit unions.
Meanwhile, the National Association of State Credit Union Supervisors (NASCUS), said that should the board be expanded a provision ought to be added that calls for ensuring at least one new member has state supervisory experience.
“Increasing the size of the board from three to five members would enhance the board’s deliberative process, expand its collective expertise, and improve the efficient administration of NCUA business," said NASCUS CEO Lucy Ito. "And designating one of those seats for a candidate with state credit union supervisory experience would streamline supervisory coordination between state and federal regulators, minimize redundancies and overall strengthen the dual-chartering system. NASCUS will urge Chairman Hensarling to consider including the state supervisor provision in his proposal as it moves through the legislative process.”