Now credit unions need to make sure they follow up with all these new members to see if they have loans, or in some cases more loans, or accounts to bring to the credit union. And credit union marketing and PR types must keep the industry in front of the mainstream press. The third-party validation of credit union executives as experts in providing financial services to consumers is invaluable.

Second, Carla Decker, head of District Government Employees Credit Union (which according to the NCUA is officially named DC FCU, a situation that has caused some confusion), goes before the Senate Banking Committee Nov. 17. If you read Claude Marx' Marx on Capitol column, he notes that she's not a controversial appointee. In some sense that is true. Given the lack of attention paid to the NCUA and credit unions in general, she likely won't draw much attention from them.

However, there are some issues at her credit union that have brought some attention from the credit union industry, which you can only find at CUTimes.com. Read some of the comments found under the online article, “NCUA Board Nominee's Credit Union is 'High Strategic Risk.'”

I also outlined a few of them in my Nov. 2 column, “Perception and Reality Will Shape Decker's Fate,” but I did not go far enough. And quite honestly, new information has come to light.

According to examination documents obtained by Credit Union Times, DGE FCU had unreconciled ATM and ACH accounts going back to 2002 totaling $734,235 that were not written off. The report warned that if the funds were not discovered they must be written off in the first quarter of 2011, which would likely result in a net worth drop to 10.77%. At year-end 2010 DGE FCU's net worth was sitting pretty at 12.18%, according to its financial performance report. By first quarter 2011, it plummeted to 10.11%.

Presumably three quarters of a million dollars went missing from the $45 million credit union. Regrettably, accounting problems at small credit unions is not terribly uncommon, but the fact the NCUA did not force the credit union to write the funds down for eight years is even worse. That amount didn't creep up overnight.

On top of that the credit union had repossessed a vehicle with a loan balance of $80,000. That's a heck of a nice car, particularly for a low-income-designated (by the NCUA) credit union to be funding the loan. Some larger credit unions wouldn't make that loan simply for the concentration risk. This is something credit unions, founded to serve those of modest means, would not want highlighted.

However, whether Decker's credit union is the victim of the economy or some sort of insider dealing or she has not run her credit union well is irrelevant to the bigger picture. Her ability to run a credit union and her potential abilities as a regulator are very different skill sets.

When someone goes through the nomination process to the NCUA board, their background is necessarily highlighted. Decker's most recent work experience has been at DGE FCU, therefore her credit union comes under scrutiny by the media, by Congress and by the administration (arguably I know, considering gaffes like Treasury Secretary Geithner's failure to pay his taxes).

While no one in the administration or the Senate may read this, I had to take a stand because I do care about the future of credit unions and the NCUA: Carla Decker cannot be the best candidate credit unions can put up for the NCUA board seat.

This entire scenario runs counter to the trade associations' work to build credit unions' reputation in Washington, and yet they aren't doing anything publicly to ensure NCUA board nominees from within the credit union industry will represent the industry to the highest quality possible.

CUNA and NAFCU need to get their priorities in check to advocate for their member credit unions and send up someone from within the credit union industry who will represent it in a better light. Forget about banker attacks that the regulators being too close to the industry! Their regulators aren't exactly from another planet. Former FDIC Chairman Powell used to join in with the credit union bashing.

But Mr. Marx is right. She'll likely pass through confirmation with little more than a couple of pointed questions during her hearing. The Democrats will want to get someone confirmed just in case there is a change in party in the White House, and quite frankly, credit unions and their regulators– like others–are an afterthought to party politics.

Next step
Read Marx on Capitol at CUTimes.com/MarxonDecker