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Trump Nominates NCUA Critic Rep. Mulvaney to Head OMB
Tuesday, December 20, 2016 6:50 AM

President-elect Donald Trump has nominated Rep. Mick Mulvaney (R-S.C.), a longtime critic of the National Credit Union Administration's spending and budget transparency, as his budget director.

While Mulvaney will have major responsibility over the budget Trump will send to Congress, he has no direct power over the NCUA budget, since the agency is not subject to the annual appropriations process. Still, the budget deficit hawk and Financial Services Committee member will be in a key position to push Congress to pass credit union-related legislation.

Last month, Mulvaney sent a letter to NCUA applauding efforts to increase budget transparency but also raising concerns about agency spending. “Despite this important progress, I continue to have concerns with NCUA’s persistent failure to control expenses as your budget continues to balloon—nearly doubling in the last decade,” Mulvaney wrote.

He also expressed displeasure with the NCUA paying attorneys $1 billion in legal fees in cases involving the sale of faulty mortgage-backed securities to five failed corporate credit unions. NCUA had hired attorneys on a contingency fee basis, a decision Mulvaney questioned.

Mulvaney also is co-sponsor of legislation that would require any overhead transfer of agency expenses to the insurance fund to be legitimate, substantiated, insurance-related costs. NCUA has released detailed budget documents this year and held a public briefing on its spending.

Mulvaney also had a sharp disagreement with then-NCUA Chairman Debbie Matz during a committee hearing in July 2015. While being questioned by Mulvaney, Matz twice said that she doesn’t believe credit unions represent their members. Mulvaney later referred to that exchange during a September 2015 speech at the NAFCU congressional caucus.

“It was stunning,” Mulvaney said. “To have oversight over an entire industry and think so poorly of the people in that industry was shocking.”

Matz left the NCUA board earlier this year.

Source: Credit Union Times