The House Financial Services Committee (HFSC) should oppose granting the NCUA third-party vendor authority, America’s Credit Unions President/CEO Jim Nussle wrote to the committee Monday ahead of its hearing with Treasury Secretary Janet Yellen. The letter also covers credit union priorities on cybersecurity, Community Development Financial Institutions (CDFI) certification, and more.
Nussle noted the NCUA can collaborate with the Treasury – and other stakeholders – to obtain relevant cybersecurity information. Rather than expand the NCUA’s authority, he recommended Congress direct the NCUA to use resources within Federal Financial Institutions Examination Council (FFIEC) or to compel other regulators to provide the NCUA with needed information to meet their needs without adding burdens for credit unions.
Additionally, regarding cybersecurity, he explained the Treasury should ensure “future implementation of the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) is consistent with existing mechanisms for reporting cyber incidents adopted by the NCUA and other federal banking agencies, to the extent certain financial institutions are regarded as critical infrastructure operators.”
Nussle also highlighted the work of the CDFI Fund to overhaul its application but flagged various issues. He shared credit unions’ concerns about the legality of the request to require the collection of race and ethnicity data within certain target markets, and pointed out the CDFI Fund has not provided any additional support or clarity. Nussle also detailed delays “of multiple weeks in receiving responses from the CDFI Fund” and called for the CDFI Fund to have “appropriate funding to meet its mission and provide sufficient assistance to current and potential CDFI credit unions.”
He also expressed concerns about the NCUA’s climate risk calculations, noting that it may not reflect a consensus approach for assessing the financial impact of climate risks. He concluded by noting that credit unions and CDFIs are best positioned to implement the Greenhouse Gas Reduction Fund and support green efforts due to their experience in lending and strong community ties.
Read the full letter. America’s Credit Unions will monitor the hearing and provide credit unions with any relevant information.