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NCUA’s Hood: Credit Unions’ “Core Value” Guides NCUA’s Decisions

October 2019
NCUA’s Hood: Credit Unions’ “Core Value” Guides NCUA’s Decisions

Chairman Speaks to California and Nevada Leagues’ REACH Conference

MONTEREY, Calif. (Oct. 29, 2019) – The National Credit Union Administration is guided by the core value of “people helping people” when it makes decisions, Chairman Rodney E. Hood said yesterday.

“It’s a guiding value for people who work in the credit union industry,” Chairman Hood said. “In my role as regulator, I keep the focus on that core value statement, because it can guide our decision-making at the federal level.”

Chairman Hood spoke to California and Nevada Credit Union Leagues’ REACH conference.

“The question I ask is,” Chairman Hood said, “what can we do in Washington to help you serve your members better, improve your product lines, make a difference in the lives of your people and your communities?”

Progress to Report

The Chairman described several actions the agency has taken to fulfill that purpose. Among those, the NCUA:

  • Gave credit unions greater flexibility in liquidity management by increasing the limit on public unit and non-member shares;
  • Increased the threshold on appraisal requirements for commercial property from $250,000 to $1 million;
  • Issued interim guidance on doing business with the legal hemp industry, the first federal financial regulator to do so;
  • Proposed to delay the risk-based capital rule for two years;
  • Adopted the Payday Alternative Loans II rule, a free-market solution that responds to market needs; and
  • Encouraged expanded employment opportunities for people convicted of minor crimes who have paid their debt to society and seek a new path forward.

“I want you to consider those efforts as a down payment,” Chairman Hood said. “We want this industry to be successful at steering through those changes so you can create more opportunity for your members and for your institutions, while also ensuring the safety and soundness of this industry in the future.”

“I want to emphasize that, with all the things we’re doing, we’re looking to give credit unions the tools they need to serve their members better,” Chairman Hood said. “We want you to have more flexibility to innovate, to create financial products that respond to your members’ needs, and to continue providing the highest levels of service to your communities.”

Promoting Diversity and Inclusion

Chairman Hood discussed issues he sees in the near future, and he paid particular attention to financial inclusion, noting the agency’s planned Diversity, Equity, and Inclusion Summit.

“Diversity and inclusion in the credit union industry remains one of our top priorities,” he said. “I truly believe that financial inclusion is the civil rights issue of our time. Given the profound demographic changes and social challenges we’re seeing in America, those principles are only going to grow in importance.

“Whether it’s the challenges faced by African-American, Latino, or Native American working families; the access challenges that military veterans or disabled Americans experience; or the lack of access to capital that’s putting stress on communities in rural America; we need to do a better job of meeting those needs,” he said.

Chairman Hood said that, in addition to supervision, his role as regulator is to help credit unions do more to serve members and reach the underserved.

“Let’s always keep the focus on people helping people by fostering greater financial inclusion, accessibility, and opportunity for all Americans. If we do that together, we can make a real difference in people’s lives.”

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