Credit union stakeholders commended the NCUA Monday for adopting a reorganization plan that acknowledges the consolidation of the industry, while also recognizing how technology can make supervision much more efficient.
“The moves are long overdue and are consistent with Chairman [J. Mark] McWatters’ vision to create a more effective regulatory environment that embraces a virtual exam model and more remote work to reduce costs,” said Paul Gentile, president of the Cooperative Credit Union Association.
The NCUA on Friday announced that it will be closing its Albany, N.Y. and Atlanta, Ga. field offices. The agency also said it was reorganizing several offices, while eliminating four of its five rental sites.
Former NCUA board Chairman Michael Fryzel, said that as a member of the Trump Administration’s NCUA transition team, he recommended decreasing the number of regional offices from five to four—an effort he also supported while on the board.
“The NCUA board has gone an additional giant step forward by proposing a reduction to three regions,” he said. “That move alone signifies their desire and commitment to a leaner and better operated regulatory agency.”
Credit union officials in New York and Georgia—the states most affected by the change—said they saw the need for the consolidation.
“While I feel it’s a loss for New York, I understand the changes and potential efficiencies that technology brings to all organizations, including NCUA,” said New York Credit Union Association President/CEO William J. Mellin.
“We appreciate the NCUA board being responsive to credit unions’ concerns about the budget by recommending ways to cut overhead,” said Cindy Connelly, senior vice president of public influence for Georgia Credit Union Affiliates.
Connelly said the association has been assured by NCUA officials that all regional office staff will be offered jobs with the agency.
“We hope this change ensures NCUA will continue to invest in the education and training of examiners, as our credit unions’ interactions with field staff have the most impact on day-to-day credit union operations,” she added.
Former NCUA board Chairman Dennis Dollar said that while he was at the helm of the agency, it closed its Chicago regional office and moved its San Francisco office to Tempe, Ariz.
“I am pleased to see the bipartisan support on the NCUA Board to, really for the first time since then, significantly work further on right-sizing an agency that continues to supervise fewer credit unions at a merger rate of one per business day and has access to incredibly enhanced technology today to do more of their exam work offsite,” he said.
Gentile said the NCUA has announced plans to heavily invest in technology in an effort to decrease the need for on-site exams.
“The consolidation of offices mirrors the changing demographics of the credit union system and recognizes the need to streamline and reduce costs without sacrificing safety and soundness,” he said. “As the system changes it’s imperative that NCUA change with it.”
