NAFCU expresses concerns about external legal counsel costs, NCUA proposal

NAFCU_logo_editedIn a Friday letter to the National Credit Union Administration, the National Association of Federal Credit Unions voiced concern about the cost of external counsel, as well as NCUA’s proposal to ramp up credit union data collection.

PJ Hoffman, regulatory affairs counsel at NAFCU, urged the NCUA to disclose information it collects on fees, costs and expenses from potential external legal counsel. He also said, in response to NCUA’s request for comment on forms it plans to use to collect the data, the NCUA should prioritize cost-effectiveness in processes used to choose external counsel.

“We believe that it is incumbent on the NCUA, as stewards of the money it receives from federally-insured credit unions and their members, that every cent it collects is administered with the utmost diligence and respect to credit unions and their members,” Hoffman said.

Tessema Tefferi, senior regulatory affairs counsel at NAFCU, told the agency to consider the impact of its increased data-collection efforts on credit unions that is scheduled to begin next month.

NCUA has proposed to require credit unions to provide information related to their auditors and diversity policies on the Credit Union Profile.

Tefferi said the agency should avoid collection of auditor data unless it can provide solid justification for doing so, adding that data on the institutions’ diversity policies can be found without adding to their reporting burdens.

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