Editor’s Note: This opinion appeared first on Randy Karnes’ blog at tellmewhyimwrong.com
By Randy Karnes
Three written comments. That’s how many comments were submitted by credit unions to the NCUA with respect to their 2017-2018 budget. Three comments on a budget that affects more than SIX THOUSAND credit unions across the nation. And oh, by the way, those three credit union representatives were speakers at the budget hearing.
Why don’t credit unions care? Or maybe you do, but you just don’t see the point? Why fight the current when you can ride it right off the cliff? NCUA sees this and figures it can keep doing whatever it wants, because clearly their stakeholders won’t put up a fuss. The problem, as my friend Vic Pantea said in an email to me, is that “We don’t have enough individual CU CEOs willing to give a sh*t—they delegate their voice to the national organizations.”
And there’s definitely reason within the budget to put up a fuss. What few comments were submitted pointed out some glaring flaws and alarming trends. American Airlines FCU pointed out that “Contracted services are the third largest expenditure for the agency, yet there does not seem to be much public information on those specific costs or the process for selecting contractors. As a result, stakeholders cannot evaluate whether the contracts are awarded appropriately and the fees paid are reasonable.”
Or this from Bill Raker, CEO of Firefly Credit Union: “From December 2010 through June 2016, although total assets of federally insured credit unions increased by 39%, assets in troubled credit unions declined by 78% and the number of credit unions decreased by 21%. However, over this same time period, the NCUA’s budget expanded by almost 50%.”
These aren’t insignificant numbers. Yet as an industry, credit unions seem content to sit idly, all the while complaining about mounting costs, but unwilling to voice their dissent when and where it matters. It’s not enough to rely on your national organizations to speak up. If this doesn’t seem right (and it certainly shouldn’t), do something about it next time!
This comment period might be over but you can still let the NCUA know that you want more transparency, more accountability, and a better explanation for why your costs are rising despite there being fewer and more stable credit unions to govern.
If you have another reason for why you didn’t comment, I’d love to hear about it. Because it’s hard to reconcile the passion and frustration of a leader like Vic with the apparent apathy we see in our industry’s actions. Tell me why I’m wrong.
Randy Karnes is CEO of CU*Answers, Grand Rapids, Mich. For info: www.cuanswers.com