INTERVIEW
I am proud of a few of the accomplishments that we were able to make . One such accomplishment is that I was able to reduce the regulatory burden around appraisals for mortgages , commercial lending and residential lending . We saw that in many areas of the country , it was very difficult to get appraisals promptly . Through working with our fellow Board members , we were able to reduce the threshold or we were able to remove the impediment .
Another accomplishment was helping credit unions look at opportunities to serve underserved communities . We put forth a final rule revising the definition of a service facility for our multiple common bond credit unions . The rule says that credit unions wanting to serve a new area that is especially underserved and unbanked will have to invest $ 1 million or $ 2 million to create a new branch . We are now also saying that you can have an ATM , a video ATM or even a shared branching network with other credit unions without paying a fee . That means you could have four different credit unions all sharing their platform . We are allowing that to be considered a service facility . That was a gamechanging opportunity .
AT : Are there relationships between banks and credit unions ?
RH : Citibank has been working with our low-income designated credit unions in New York . They provide access to the Citibank financial network of ATMs free of charge to credit unions . Again , these are credit unions that are designated as low-income , minority depository institutions or community development financial institutions ( FIs ).
AT : What was the NCUA ’ s role in responding to the COVID-19 pandemic during your tenure as Board chairman ?
RH : I created a new initiative titled ACCESS , which helps communities through credit , education , stability and support . This initiative was created amid the COVID-19 pandemic , and we had to adjust to our remote work posture . Sadly , we experienced seeing the disproportionate impact of the pandemic on communities of color . And we all watched the murder of George Floyd play out right before our very eyes . Lamentably , we saw this egregious disregard for the sanctity of life play out . As a man of color , I was taken aback by it and wanted to do something about it . As chairman of an agency of the size of the Municipal Credit Union , I had an opportunity to write an op-ed in the Wall Street Journal , where I called for banks and credit unions to come together to help society heal through the deployment of financial tools and resources . I followed that piece with appearances on television and radio where I continued to spread the message of healing .
I once read and heard that where empathy meets action , you have compassion . By creating the ACCESS initiative , I hope to have shown compassion , and that initiative is now fully up and running . We have a director of ACCESS , and this group ’ s job is to promote financial capability , financial health and well-being in underserved communities . It is also designed to look for partnership opportunities with nonprofit groups and credit unions to help them serve the underserved . I am speaking about the 26 million households where people are what we call “ credit invisible ,” or without a credit score . In addition , there is an estimated 40 % of American households who are unable to obtain $ 400 in the event of a family emergency . This conversation also includes minority communities , ethnic communities , the disabled and differently abled , and tribal , rural and indigenous folks , among others .
Another piece that I am proud of is the launching of the Office of Innovation at the NCUA . The office now has its own office of Financial Technology , where we are looking at how we use digital platforms to help credit unions reach their members and serve them more effectively . Our Office of Financial Technology , grouped with ACCESS , works with fintech companies in Silicon Valley to learn more about what they are doing and how we can ensure they have the regulatory clarity they need to work with our credit unions .
AT : As an NCUA Board member , you serve as NCUA ’ s representative on the Board of Directors of NeighborWorks America . How would you characterize the current state of affordable housing , and how is the organization addressing it ?
RH : In general , at NCUA , we want our credit unions to make loans readily available to members . Homeownership is still the fundamental building block for assets .
We have demonstrated that we know how to make mortgages available . However , I am calling for a reset . We are making mortgages available sustainably . By that , I mean that we are making loans to individuals to build wealth so they can pass those homes owned to the next generation . I am proud to serve as the new chairman of NeighborWorks America , a quasi-government entity comprising Board members from financial regulators that provides affordable housing opportunities through partnerships with local communities .
Credit unions now have about $ 1.7 trillion in outstanding loans . Most of those are loans for small businesses , cars and mortgages , so credit unions continue to step up . But the state of homeownership today exists in a risinginterest-rate environment . We recognize that many folks have been lamentably priced out of the market . I am proud of groups like NeighborWorks America that partnered with FIs that provide grants and funding to help with down payment assistance and , in some instances , to help with buying down interest rates .
74 acamstoday . org