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Luetkemeyer Tells Credit Unions: NCUA Asked Congress “Not to Do Its Job”

As a member of the House Financial Services Committee, Missouri Congressman Blaine Luetkemeyer (R-District 3) is known on Capitol Hill for focusing on regulatory relief. However, when Luetkemeyer attempted to address credit union concerns with the National Credit Union Administration’s (NCUA) Risk-Based Capital (RBC) proposal, he hit a roadblock from the regulator. Leutkemeyer recounted the situation during a speech to the National Association of Federal Credit Union’s Congressional Caucus on September 10 in Washington, D.C.

Immediately prior to a July House Financial Services Committee markup of a bill to reform financial institution capital standards, NCUA Board Chairman Debbie Matz wrote a letter to Committee Chairman Jeb Hensarling (R-TX) and Ranking Member Maxine Waters (D-CA), asking that “the House Financial Services Committee refrain from considering amendments at tomorrow’s markup related to NCUA’s risk-based capital proposed rule, because this rulemaking is essential to protecting the safety and soundness of federally insured credit unions.

The amendment, sponsored by Rep. Luetkemeyer, would have required the NCUA to conduct a study of appropriate capital requirements for mortgage servicing assets, and it would have delayed action on the NCUA Risk-Based Capital proposal. 

“Here’s a regulator petitioning us, Congress, not to do our job. I mean, it’s just beyond explanation. They don’t want any oversight. They don’t want anybody to interrupt their little games that they’re playing,” Luetkemeyer stated at NAFCU’s event.

The Missouri Credit Union Association's (MCUA) Advocacy staff worked with Luetkemeyer’s office on the effort to add the amendment. In advance of the committee meeting, MCUA also reached out to the other three Missouri members of the House Financial Services Committee in support of the amendment.

Missouri credit union leaders thanked Luetkemeyer for his efforts to address the Risk-Based Capital proposal during an in-district meeting in Jefferson City on September 3. In addition to preparing the amendment, Luetkemeyer signed a letter from members of Congress citing concerns with the RBC proposal that was sent to the NCUA. All ten of Missouri’s U.S. Senators and Representatives sent individual or signed joint letters regarding this issue.

The Luetkemeyer amendment may still be considered on the House floor later this year.

Caption: Pictured are the credit union leaders who met with U.S. Rep. Luetkemeyer on September 3. They are (from left) Bill Mustain, Employment Security Credit Union, Amy McLard, Missouri Credit Union Association, Randy Yeck, Vantage Credit Union, Johnny O’Hare, Mid Missouri Credit Union, U.S. Rep. Luetkemeyer, Rick Nichols, River Region Credit Union, Dana Alderman, River Region Credit Union, Carol Minges, 1st Financial Federal Credit Union and Brent Sadler, United Credit Union.