Nussle says NCUA does not need third-party vendor supervisory powers

America’s Credit Unions is urging Congress to ignore a recently introduced House bill that would give the National Credit Union Administration supervisory powers over third-party vendors.

“We believe in a strong NCUA, but we also believe that the NCUA should stay focused on where its expertise lies—regulating credit unions,” association President/CEO Jim Nussle wrote in a letter to the House Financial Services Committee. “Credit unions fund the NCUA budget. Implementing such new authority for the NCUA could result in the agency increasing its budget, due in part to hiring examiners with sufficient expertise, ultimately having credit unions and their members bear the cost.”

Credit union trade groups traditionally have opposed granting the NCUA supervisory power over vendors.

Nussle’s letter cites H.R. 7036, legislation recently introduced by House Financial Institutions and Monetary Policy Subcommittee ranking Democrat Rep. Bill Foster of Illinois. That bill would grant the NCUA and the Federal Housing Finance Agency the power to oversee third-party vendors. In introducing the bill, Foster said the two agencies are the only financial regulators without supervisory powers over vendors.

 

continue reading »