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NCUA's McWatters Says New RBC Comment Period is Needed

National Credit Union Administration (NCUA) Board member J. Mark McWatters, in a meeting with senior Credit Union National Association (CUNA) staff Thursday, September 18, 2014, confirmed that he would not vote in favor of any risk-based capital (RBC) proposal if it does not include a second comment period.

Former CUNA interim president/CEO Bill Hampel, along with General Counsel Eric Richard, and Deputy General Counsel Mary Dunn, met with McWatters after NCUA’s monthly Board meeting last week, at which the Board was briefed on the Temporary Corporate Credit Union Stabilization Fund quarterly report and issued a final rule that makes several non-substantive, technical amendments.

McWatters, who joined the NCUA board in August, told the CUNA officers that he supports a second comment period for the agency’s RBC proposal out of respect for the credit union industry and because of the bipartisan support given credit union concerns by members of the U.S. Congress.

The Thursday meeting was the latest in CUNA’s advocacy efforts regarding the RBC proposal. CUNA staff also met with NCUA Board member Rick Metsger on the subject last week. One of CUNA’s top priorities is to see a second comment period for a revised version of the rule, a version that takes into account concerns raised by the more than 2,000 comment letters submitted to NCUA.  The Missouri Credit Union Association filed a comment letter on May 28, 2014.