(Albany, NY) – Credit Union Association of New York staff met with NCUA Associate Regional Director of Operations Rebecca Paliwodzinski and Supervisory Examiner Jon Flagg on Friday to discuss the impact of Hurricane Sandy on New York credit unions. The group talked openly about lessons learned, short-term challenges for credit unions and their members, and long-term priorities.
After confirming that all New York credit unions are now operational (although a small number are delivering services from limited or alternate branches) Paliwodzinski and Flagg shared their pre- and post-hurricane strategies. According to Paliwodzinski, their team reached out to approximately 881 credit unions in New York and New Jersey before the hurricane to verify key contact information. “This was a huge positive for us, as it facilitated rapid-fire contact when the storm hit,” she said.
Flagg, a Long Island resident, served as Supervisory Examiner in New Orleans during and after Hurricane Katrina. Referencing his experiences from that time, he noted that New York credit unions are in much better shape overall than the credit unions impacted by Hurricane Katrina.
Paliwodzinski was also positive, praising credit unions for their cooperative efforts during the hurricane’s aftermath.
When Association President/CEO William J. Mellin asked about NCUA’s plans regarding credit union disaster preparedness, Paliwodzinski confirmed that examiners look at credit unions’ disaster recovery plans during examinations. However, both Paliwodzinski and Flagg said the agency has no plans to do special or early evaluations.
“Confirming that credit unions are operational was our first priority, and we may also need to look at recordkeeping later if issues arise,” explained Paliwodzinski.
The group also acknowledged potential loan servicing issues credit unions may face. “We will be looking to assist credit unions with methods for recording deferrals and extensions, but we would handle that on a case-by-case basis,” said Flagg.
When the discussion turned to potential capital challenges, Paliwodzinski emphasized that the requirement for achievable net worth restoration plans is firm, but assistance and guidance are available to credit unions facing challenges.
“Our examiners are trained to look at the big picture,” she said. “As always, we encourage credit unions to communicate with their examiners and share any issues or concerns they may have.”
Moving forward, the Association will continue to dialogue with NCUA about credit unions’ post-hurricane recovery.
“Regulatory advocacy is an essential part of the work we do for New York credit unions, and this is just an extension of that advocacy,” said Mellin. “Meetings like these allow us to hear the agency’s perspective, share the challenges our credit unions are facing and work together toward the fullest recovery possible.”
Joining Mellin for the meeting were Association SVP/General Counsel Michael Lanotte, SVP of Association Services Ronald McLean, VP of Member Services Tracy Conner, Compliance Director Michael Carter and CUC Mortgage Corporation COO Edward Kovalefsky.
The Credit Union Association of New York has served as the trade association for the state’s credit unions for 95 years. New York credit unions have assets of more than $57 billion and serve 4.6 million members. To learn more about the Association, visit www.cuany.org.