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March 6, 2008 - Michigan state regulator and NASCUS Board member Roger Little represented NASCUS and state regulators with remarks during the March 6 general session of the Credit Union National Association (CUNA) Governmental Affairs Conference (GAC).
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| NASCUS Board member Roger Little (MI) addresses the 2008 CUNA GAC audience on March 6. Photo by Ben Anderson. |
Little, a past NASCUS chairman and deputy commissioner of the Credit Union Division of the Michigan Office of Financial and Insurance Services, addressed the audience with remarks on economic challenges and credit union service opportunities from a regulatory perspective. He also emphasized the importance of NASCUS’ continued work to address unrelated business income tax (UBIT) and efforts to enhance interstate branching for state-chartered credit unions.
Little emphasized that while the current economic environment is challenged by problems in the real estate and mortgage markets, credit unions are in a unique position to grow and serve members where other financial institutions may not be able to help consumers.
“The credit union industry is entering these uncertain times with strong credit quality, high levels of capital and generally speaking a well diversified capital structure,” said Little. “As other lenders face challenges and appropriately tighten lending standards, there is an opportunity for credit unions to help consumers find solutions to intractable mortgage problems in a way that avoids foreclosure.”
Little stressed that the current credit cycle drives a return to the basics for credit unions. This includes sound underwriting and proper analysis of creditworthiness in order to grant credit properly and safely. He also focused on the potential for credit unions to encourage member savings and move away from using housing values as a method of leveraging consumer spending.
Another issue Little discussed was the challenge that UBIT presents to the state credit union system. He expressed NASCUS’ steadfast recognition that the “application of UBIT on state-chartered credit unions is neither fair nor equitable.” Little underscored NASCUS’ commitment to working with the UBIT Steering Committee and credit union system partners to favorably resolving UBIT issues.
With a focus on the state charter’s ability to compete effectively and efficiently on an interstate basis, Little highlighted NASCUS’ efforts to bolster the interstate branching capabilities of state-chartered credit unions. He explained NASCUS’ work to revise its interstate branching cooperative agreement among the States and to encourage regional partnerships where permitted by state law on branching issues.
While credit unions are operating in challenging economic times, Little expressed optimism about the continued strength of the credit union system. “I remain optimistic and encouraged about the competitiveness and viability of the dual chartering system,” said Little. ”I believe strongly that having the opportunity for charter choice, and maintaining innovation within the state system results in a stronger credit union system overall.”
Little’s full remarks can be downloaded here.
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