Nussle: Who Needs to Hear Message? Those Not Here
PORTLAND, Ore.–Credit unions in Oregon and Washington are some of the most active in the country when it comes to political advocacy, often sending the largest delegations to various Hike the Hill campaigns in Washington, D.C.
But CUNA CEO Jim Nussle told credit unions in attendance at the Northwest Credit Union Association’s Amplify Annual meeting here that they have got to get outside their “comfort zones,” and that includes getting the CUs who were not on hand to be more involved.
“For the last 10-15 years, we have, and I think it’s a fault of associations, kind of over-promised that we can do it on our own,” said Nussle. “You send me a check for dues, we hire a bunch of lobbyists on Capitol Hill, and we’ll go get that big win, such as HR 1151 (1998’s Credit Union Membership Access Act). It doesn’t work that way, and isn’t going to work that way in the future.”
The CU white hat isn’t enough, said Nussle, noting that even though Sen. Elizabeth Warren (D-MA) recently told him how much she loves credit unions, she still “won’t touch” Dodd-Frank or the CFPB. He also met another congressman recently who also expressed his love for credit unions, but then added, “I can’t vote for you.” The reason? In this case, “My party is against it.”
“Decisions are being made out of pure partisanship and they are getting away with it,” said Nussle. “The only people who can hold them accountable is you. There is only one strategy that will work in Congress and move the needle; you have got to engage real people in this business of advocacy. It doesn’t work any other way.”
A Piece of Financial Literacy Credit Unions Are Missing
PORTLAND, Ore.–Credit unions aren’t doing all they can in financial literacy, because many aren’t making eligible members aware of the Earned Income Tax Credit (EITC), according to the Speaker of the House in the Oregon legislature.
An outspoken advocate of credit unions, and a member of OnPoint Credit Union, Oregon Speaker Tina Kotek (D) told the Northwest CU Association’s Amplify annual meeting that Oregon is “woefully under-represented in the take-up rate on the EITC. You do a great job on financial literacy. Are your members taking advantage of the EITC. Do they know that even if they don’t pay taxes they can still file? They should invest those funds back into a savings account that you have set up.
Kotek, who said she is a fan of credit union’s mission and appreciative of the democratic governance structure and cooperative model, also addressed the issue of the living wage, noting that with the Consumer Price Index flat there is no increase in minimum wage in Oregon or Washington.
“How to work with those people to help them save,” asked Kotek. “My question to you is what is the wage structure in your organizations? What will impact your organizations if there is a change in minimum wage? What are you doing to make sure none of the people who work for you are living in poverty if they work for you full time?”
NCUA Board Member Has Four Goals For Term
PORTLAND, Ore.–Rick Metsger still recalls the lighting speed, relatively speaking, of the Oregon legislature when he was in the state Senate–a bill could be crafted on the last day of a legislative session and gotten to the governor for a signature on the very same day.
No so in Washington, said Metsger, vice chairman of NCUA’s board, who illustrated the glacial pace of the federal government with this example: NCUA’s recently OK’d rule eliminating the 5% cap on fixed assets at credit unions.
Metsger joined the board two years ago and immediately began discussing rules and regulations that existed for no real reason, including that fixed asset requirement. “It was not difficult to get agreement,” noted Metsger. “There were no key obstacles, other than just the bureaucracy and the comment period. It still took two years to get something done—and there were no objections.”
For Metsger, who in addition to being a member of the Oregon Senate is also a former journalist and former CU board member, it was a homecoming when he offered remarks before the Northwest CU Association’s Amplify annual meeting here.
He told the meeting he has taken a different approach since joining the board than what many may expect of a regulator.
“I knew that protecting safety and soundness was a priority, but I had a different take on that,” said Metsger. “There is another part of safety and soundness that I recognize, first because of my role as chair at OnPoint Credit Union, but also in the Senate, and that is that another way to ensure safety and soundness is to ensure credit unions have the tools to build capital. The more successful a credit union is in serving its members, the more insulation there is for the share insurance fund. So it’s not just about what you can’t do, but what can credit unions do?”
Another lesson Metsger said he learned while serving 12 years as a legislator was this: “I was a lot different legislator my last two years than my first two. I learned that if everything is on your agenda, you have nothing on your agenda. You have to be focused.”
To that end, Metsger said he is focused on four issues during his term on the NCUA board:
- Elimination of the fixed assets rules (which is now checked off).
- Allowing for association common bonds that don’t require NCUA approval.
- Expansion of member business lending.
- Expansion of field of membership rules.
“If my tenure on the NCUA board ends with all four of those moving forward, then I will view my term on the board as a success,” said Metsger.