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S. HRG. 111–292 

NOMINATION OF DEBORAH MATZ 

HEARING 

BEFORE THE

COMMITTEE ON 

BANKING, HOUSING, AND URBAN AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

ON 

THE NOMINATION OF DEBORAH MATZ, OF VIRGINIA, TO BE CHAIR OF 

THE BOARD OF THE NATIONAL CREDIT UNION ADMINISTRATION 

JULY 22, 2009 

Printed for the use of the Committee on Banking, Housing, and Urban Affairs 

( 

Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html 
COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS 

CHRISTOPHER J. DODD, Connecticut, Chairman 

TIM JOHNSON, South Dakota 

JACK REED, Rhode Island 

CHARLES E. SCHUMER, New York 

EVAN BAYH, Indiana 

ROBERT MENENDEZ, New Jersey 

DANIEL K. AKAKA, Hawaii 

SHERROD BROWN, Ohio 

JON TESTER, Montana 

HERB KOHL, Wisconsin 

MARK R. WARNER, Virginia 

JEFF MERKLEY, Oregon 

MICHAEL F. BENNET, Colorado 

RICHARD C. SHELBY, Alabama 

ROBERT F. BENNETT, Utah 

JIM BUNNING, Kentucky 

MIKE CRAPO, Idaho 

MEL MARTINEZ, Florida 

BOB CORKER, Tennessee 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

MIKE JOHANNS, Nebraska 

KAY BAILEY HUTCHISON, Texas 

EDWARD SILVERMAN, Staff Director 

WILLIAM D. DUHNKE, Republican Staff Director 

LAURA SWANSON, Professional Staff Member 

JOE HEPP, Professional Staff Member 

MARK OESTERLE, Republican Chief Counsel 

DAWN RATLIFF, Chief Clerk 

DEVIN HARTLEY, Hearing Clerk 

SHELVIN SIMMONS, IT Director 

JIM CROWELL, Editor 

(II)
C O N T E N T S 

WEDNESDAY, JULY 22, 2009 

Page 

Opening statement of Senator Johnson ................................................................. 1 

Prepared statement .......................................................................................... 8 

Opening statements, comments, or prepared statements of: 

Senator Shelby .................................................................................................. 2 

NOMINEE 

Deborah Matz, of Virginia, to be Chair of the Board of the National Credit 

Union Administration .......................................................................................... 2 

Prepared statement .......................................................................................... 8 

Biographical sketch of nominee ....................................................................... 10 

Responses to written questions of: 

Chairman Dodd ......................................................................................... 21 

Senator Vitter ............................................................................................ 21 

(III)

(1) 

NOMINATION OF DEBORAH MATZ, OF VIRGINIA, TO BE CHAIR OF THE BOARD OF 

THE NATIONAL CREDIT UNION ADMINISTRATION 

WEDNESDAY, JULY 22, 2009 

U.S. SENATE, COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, Washington, DC. 

The Committee met at 3:02 p.m., in room SD–538, Dirksen Senate Office Building, Senator Tim Johnson, presiding. 

OPENING STATEMENT OF SENATOR TIM JOHNSON 

Senator JOHNSON. I would like to call this hearing to order. 

Today the Committee considers President Obama’s nominee-designee to chair the National Credit Union Administration Board. 

The NCUA charters and supervises Federal credit unions and insures the deposits of over 89 million account holders in all Federal 

credit unions and many State-chartered credit unions. 

As we face extraordinary stress and volatility in our economy, we 

need strong, qualified, and competent regulators on the job, especially as credit unions tackle unprecedented challenges. I am 

pleased to introduce to the Committee the President’s nominee for 

this job, Deborah Matz. 

When Debbie was last before us, she had been nominated to 

serve on the NCUA Board as the minority member. She served 

with distinction in that capacity from January of 2002 to October 

of 2005. When Debbie completed her last term, the Credit Union 

Times wrote: ‘‘Debbie Matz has proven to be one of the more effective persons to ever wear an NCUA Board member hat. She never 

stops looking for ways to make credit unions stronger and better, 

. . . whomever replaces her . . . will have big shoes to fill.’’ 

Mrs. Matz has had a distinguished public and private career. 

Among other positions, she served at the Department of Agriculture where she was Deputy Assistant Secretary for Administration and also chaired their Loan Resolution Task Force, which was 

charged with the responsibility of resolving over $1 billion in delinquent farm loans. Prior to her service at USDA, Mrs. Matz was an 

economist with the Joint Economic Committee of Congress. 

In the private sector, Mrs. Matz was the Executive Vice President and Chief Operating Officer of a large Federal credit union. 

I have known Debbie and her husband, Marshall, for over 20 

years. While Debbie hails from New York, I think of her as an honorary South Dakotan not just because of the amount of time she 
2 

spent in the State, but because of the heartland values she embodies. 

Debbie will provide extraordinary leadership as the Chair of 

NCUA. President Obama has nominated a very qualified candidate 

to protect the safety and soundness of the Nation’s credit unions 

during this difficult economic time. I urge the Committee to support her nomination and to report it to the full Senate for approval. 

Let me now turn to Ranking Member for comments. Senator 

Shelby. 

STATEMENT OF SENATOR RICHARD C. SHELBY 

Senator SHELBY. Mr. Chairman, thank you. This is not the first 

time Ms. Matz has been before this Committee, and I believe she 

is highly qualified, and I would think that the sooner the Senate 

got through the hearing and confirmed her to the credit union, 

somebody would be in control over there. So I look forward to trying to help her get confirmed. 

Thanks. 

Senator JOHNSON. Thank you. 

Will the witness please stand and raise your right hand while I 

administer the oath? Do you swear or affirm that the testimony 

you are about to give is the truth, the whole truth, and nothing but 

the truth, so help you God? 

Ms. MATZ. Yes. 

Senator JOHNSON. Do you agree to appear and testify before any 

duly constituted committee of the Senate? 

Ms. MATZ. Yes. 

Senator JOHNSON. Thank you. Please take your seat. 

Before you begin, please be assured that your written statement 

will be part of the record. So if you could confine your remarks to 

5 to 8 minutes, that would be greatly appreciated. 

Please also note that the Members of this Committee may submit 

written questions to you for the record, and you need to respond 

to those questions promptly in order that the Committee will proceed on your nomination. 

Ms. Matz, thank you for joining us today. I would invite you to 

introduce your family and friends in attendance before beginning 

with your statement. 

Ms. MATZ. Thank you. My husband of 31 years, Marshall, is 

here, as is our daughter, Hayley, who used to work for the Senate 

and is now the press secretary at SBA; our son, Peter, is in California, but I believe he is watching online. Hi, Peter. And we have 

some cousins here: Jack and Rhoda and Mark Berson and Dan and 

Sandy Krivit. 

Senator JOHNSON. Thank you. Proceed with your statement. 

STATEMENT OF DEBORAH MATZ, OF VIRGINIA, 

TO BE CHAIR OF THE BOARD OF THE NATIONAL CREDIT 

UNION ADMINISTRATION 

Ms. MATZ. Senator Johnson and Senator Shelby, thank you very 

much for holding this hearing. Probably the best compliment I 

could have gotten was being called an ‘‘honorary South Dakotan.’’ 

I really appreciate that. 

Senator SHELBY. Especially right now. 
3 

[Laughter.] 

Ms. MATZ. I appreciate this opportunity to come before you as 

President Obama’s nominee to chair the Board of the National 

Credit Union Administration. It is an honor to have been nominated by the President and a privilege to appear before this Committee. 

As you indicated, this is an extraordinary time in the history of 

financial institutions—including the credit union industry. The current challenge has demonstrated the need for financial regulators 

to be independent, insightful, and innovative; to value transparency and accountability. Financial regulators need to be visionary, strong leaders and adept at implementing systemic change. 

These are traits that permitted me to accomplish a great deal when 

I previously served as an NCUA Board member, from January 

2002 until October 2005, and will be even more important as Board 

Chair in these difficult times. During my term, I worked diligently 

to fairly and thoughtfully implement the Federal Credit Union Act 

and to ensure the safety and soundness of the Nation’s federally insured credit unions. 

If I am fortunate enough to be confirmed, my top priority will 

continue to be ensuring the safe and sound operation of federally 

insured credit unions. Closely related goals will be to make certain 

that NCUA thoroughly applies all relevant consumer protections, 

promotes tools such as improved financial education, and encourages credit unions to reach out to serve all eligible consumers. 

Perhaps my most notable accomplishment during my previous 

service was encouraging credit unions to reach out to those in their 

field of membership who may fall prey to unscrupulous lenders. 

Through a series of workshops which I initiated called Partnering 

and Leadership Successes, we taught thousands of credit union officials best practices for serving these populations. Credit union 

leaders learned that providing an alternative to predatory lenders 

is not just the right thing to do, it is good business. 

It was also through my efforts that NCUA established an Office 

of Small Credit Union Initiatives. This office serves as a resource 

to provide technical and financial assistance to small credit unions, 

which tend to serve the lowest-income populations. 

After my service from 2006 to 2008, I served as Executive Vice 

President and Chief Operating Officer at a Maryland credit union, 

where I experienced firsthand the effect of regulations on credit 

union operations. This sensitized me to the need for effective, rather than excessive, regulation. My 26-year Government career includes 10 years on Capitol Hill as an economist with the Joint Economic Committee and 8 years as a senior executive at the Department of Agriculture. 

Recently, as I know you are aware, corporate credit unions experienced problems with mortgage-backed securities that significantly 

affected their balance sheets. This necessitated the conservatorship 

by NCUA of the two largest corporates. While the severe economic 

downturn which propelled the corporate credit union crisis was not 

predictable, there are steps that could have been taken which 

might have mitigated or prevented its effect on these institutions. 

In 2002, the last time NCUA wrote a corporate regulation, I cast 

the lone vote against it. I did not believe the crucial issue of risk 
4 

concentration was adequately addressed. I also believed that the 

investment authority being granted was overly broad and permissive, particularly in light of the complexity of the financial instruments that were available to the corporates. 

I mention this to underscore my view of the role of a regulator 

as someone who listens, gets the facts and makes independent 

judgments. If I am confirmed and assume the chairmanship, I will 

apply these principles as NCUA begins a new round of corporate 

rule making to address the current problems. It is my commitment 

to you that, during the rule-making process, I will consider all 

viewpoints, insist on thorough analyses of data, be deliberative in 

approach, and develop a rule that provides both appropriate safeguards and sufficient opportunities for credit unions to thrive. 

The stress and uncertainty of the corporate situation has been 

difficult for the credit union industry. However, throughout their 

history, credit unions have proven to be the consumer’s best friend. 

If confirmed as their regulator, I hope to establish a strong working 

partnership with the industry while maintaining the critical arm’slength relationship between a regulator and the regulated. I assure 

that I will regulate and supervise credit unions closely, guide them 

where appropriate, make forceful suggestions, and to always appeal 

to their commitment to their members. This is the promise that a 

strong and credible Federal regulatory voice can and should help 

credit unions fulfill. 

I appreciate the chance to appear before you today and look forward to working with Congress if I am confirmed. Thank you. 

Senator JOHNSON. Thank you, Ms. Matz. 

What do you see as your biggest challenge at NCUA? What do 

you see as the biggest opportunities and challenges for credit 

unions? 

Ms. MATZ. The biggest challenge right now is dealing with the 

effects of the national economy, both in terms of the retail credit 

unions and the corporates. As I indicated, two of the largest 

corporates are in conservatorship, and one of the challenges will be 

developing a rule that is fair and provides flexibility, but at the 

same time provides sufficient parameters to prevent these events 

from occurring in the future. 

I am told that we have not experienced the end of the effects of 

the economy on the retail credit unions, and we will have to monitor them closely and try to minimize the damage so that credit 

unions can go forward and continue making loans and serving the 

89 million consumers that they do. 

Senator JOHNSON. Would a new Consumer Financial Protection 

Agency impact costs and lending for credit unions? 

Ms. MATZ. Well, one of the lessons that I think we have learned 

is that there was no agency charged with the authority to oversee 

consumer products and services, and as a result, there are people 

who have lost their homes and are losing their life savings. So I 

think it is important to have a central agency to perform that purpose. 

I think it will be successful if, in fact, it streamlines the regulations and eliminates duplication and redundancy. I do not know 

how the cost structure will work, but I am hoping that it will not 

require additional assessments on credit unions because some of 
5 

the credit unions are seeing their retained earnings decline right 

now, through no fault of their own, and it would be difficult for 

some credit unions to pay an additional assessment. 

Senator JOHNSON. In the past several months, the NCUA has 

faced many challenges with the corporate credit unions. The NCUA 

has continued to work on its corporate stabilization plan. 

How do you think this process is going so far? And will you bring 

any new suggestions to the process once you are confirmed? 

Ms. MATZ. The Corporate Credit Union Stabilization Fund, which 

was initiated by this Committee and signed into law in May has 

gone a long way toward stabilizing the credit union system. It has 

permitted NCUA to assess credit unions over the course of 7 years 

instead of in one lump sum, and that has been a tremendous assistance to the entire system. So I think that was a very necessary 

step. 

The next big hurdle for NCUA will be drafting the corporate 

credit union rule that I mentioned in my statement, and I am 

hopeful that after meeting with the industry and talking to the 

staff and all other relevant stakeholders, that we will have a proposed rule by the end of the calendar year. 

Senator JOHNSON. In today’s economy, we need more mainstream 

financial institutions providing access to short-term lending. I hear 

from many credit unions in my State that they are offering shortterm credit products to their customers with much success, yet we 

continue to hear of the need for smaller-dollar loans. 

How do you view credit unions being the solution to BD lending 

in America? Do you have any specific ideas on how to make shortterm products work for consumers without encouraging a cycle of 

debt? 

Ms. MATZ. That is an issue that has been near and dear to my 

heart, and when I started the initiative that I mentioned called 

‘‘Partnering and Leadership Successes,’’ that was really one of the 

goals—to demonstrate to credit union officials how they can serve 

low-income people and those who are subject to unscrupulous lenders. We spent a lot of time providing training and best practices for 

alternatives to payday loans that credit unions could provide. I believe a number of credit unions now are offering these loans. A 

number of credit union leagues, State leagues, have put together 

programs that the credit unions in their State can participate in 

to offer these loans. 

I felt so strongly about it and was so committed to this idea that 

when I went to work as an officer at a credit union, I initiated a 

program there that we called ‘‘Cash To Go.’’ It was a credit union 

that served a large military population and a large low-income population, and it was a wildly popular program. It has to be done 

carefully, and it is not one that credit unions are going to make 

profit on, at least initially. But it is a good source of new members 

for them, and it is the right thing to do. But it also needs to be 

combined with financial education, because the people who are 

going to payday lenders and pawnshops and rent-to-own shops 

really do not understand the cycle of debt that they are getting 

into. And it is very hard to break out of it once they get these 

loans, and they just keep rolling them over. 
6 

And so I think credit unions are playing an important role in 

educating their members, and even members of the community 

who may not be credit union members, about why it is important 

to do business with a credit union, because credit unions have a 

cap of 18 percent on their loans. That is statutory. That is the most 

they can charge. 

But I think that there are plenty of opportunities for credit 

unions to get more involved in that arena, and I certainly will continue to encourage them to do so. 

Senator JOHNSON. Senator Shelby. 

Senator SHELBY. Thank you, Mr. Chairman. 

Credit unions, as I understand them, are by design set up to 

serve the needs of their members. They do not have profit motives, 

as I understand it. They have membership service as their paramount goal. As such, why would a consumer protection agency that 

has been proposed in the white paper by the Obama administration 

be needed for them? You know, that has already come under fire, 

the consumer protection agency under fire by the Members of this 

Committee on both sides of the aisle, under fire by the Federal Reserve Board, by the Federal Deposit Insurance Corporation, by the 

Comptroller of the Currency. So why would you need that in a situation like a credit union, which are created for the members? 

I belong to a credit union here, and, gosh, I do not know why we 

would want a consumer protection agency that would be the super 

czar over whatever you did and what products you offer, as opposed 

to what products you could think of that might meet the needs of 

some of your members, and you will have a different membership. 

Ms. Matz. 

Ms. MATZ. Well, as a former and hopefully future Federal regulator of credit unions, I think NCUA does a great job of regulating 

the consumer products that the credit unions issue. 

Senator SHELBY. Who does this, now? 

Ms. MATZ. NCUA. 

Senator SHELBY. Yes. Well, they are your parent, so to speak, 

where you are going—where you are now. 

Ms. MATZ. Yes, correct. Correct. 

Senator SHELBY. They are kind of the parent of the credit unions. 

Ms. MATZ. I would not personally object if credit unions were not 

included in this umbrella organization. 

Senator SHELBY. That is what I was getting at. I do not know 

why you would need it. In other words, I was saying it was perplexing to me why a credit union, which was created for its members, serves its members, no profit, you know, nobody looking at 

the edge and so forth, would need a consumer protection agency, 

because your credit union in a sense is all about consumers, is it 

not? 

Ms. MATZ. I could not agree more. The only caveat I would say 

is that if this agency comes into existence and credit unions are included, I think that credit unions should be represented on the governing board, and the way it is set up now, there—— 

Senator SHELBY. I think it is a long way from being and coming 

into existence. I hope. 

Ms. MATZ. OK. 
7 

Senator SHELBY. I would like to move on to something else, because I have just got a minute. As I see it—and Senator Johnson 

got into a little of this, and you did, too—part of the problem with 

the corporate credit union problems, which we face with you, is 

that they concentrate risky assets on the balance sheet of a few 

firms, and when the economy turns south or sour, like it has, such 

concentration of assets can cause real problems. 

Going forward, how can we restructure the corporates so they 

can serve without concentrating too much risk? I know they serve 

a good purpose, but they were in all kinds of risky, risky investments, as you well know. 

Ms. MATZ. Yes, and as I said, that is the reason that I voted 

against the corporate rule in 2002, because I was concerned that 

there were no caps or other regulations on the investments, the 

type of investments or the concentration. Although I know the staff 

has been working on putting together a rule, I have not been 

briefed on it yet. But I can assure you that this rule will be much 

different than the former rule was. 

Senator SHELBY. It has got to be confronted, has it not, the corporate problem? 

Ms. MATZ. Absolutely. 

Senator SHELBY. Thank you, Mr. Chairman. 

Senator JOHNSON. I want to thank Debbie again for being here 

today. I look forward to working with the Members of the Banking 

Committee to report her nomination to the full Senate for approval 

in a timely manner. 

This hearing is now adjourned. 

[Whereupon, at 3:25 p.m., the hearing was adjourned.] 

[Prepared statements, biographical sketch of nominee, and responses to written questions supplied for the record follow:] 
8 

PREPARED STATEMENT OF SENATOR TIM JOHNSON 

I would like to call this hearing to order. 

Today, the Committee considers President Obama’s nominee-designee to Chair the 

National Credit Union Administration Board. The NCUA charters and supervises 

Federal credit unions and insures the deposits of over 89 million account holders 

in all Federal credit unions and many State-chartered credit unions. 

As we face extraordinary stress and volatility in our economy, we need strong, 

qualified, and competent regulators on the job, especially as credit unions tackle unprecedented challenges. I am pleased to introduce to the Committee the President’s 

nominee for this job, Deborah Matz. 

When Debbie was last before us, she had been nominated to serve on the NCUA 

Board as the minority member. She served with distinction in that capacity from 

January of 2002 to October of 2005. When Debbie completed her last term, the 

Credit Union Times wrote: ‘‘Debbie Matz has proven to be one of the more effective 

persons to ever wear an NCUA Board member hat. She never stops looking for ways 

to make credit unions stronger and better, . . . whomever replaces her . . . will 

have big shoes to fill.’’ 

Mrs. Matz has had a distinguished public and private career. Among other positions, she served at the Department of Agriculture where she was the Deputy Assistant Secretary for Administration and also chaired the Loan Resolution Task 

Force, which was charged with the responsibility of resolving over $1 billion in delinquent farm loans. Prior to her service at USDA, Mrs. Matz was an economist 

with the Joint Economic Committee of Congress. 

In the private sector, Mrs. Matz was the Executive Vice President and Chief Operating Officer of a large Federal credit union. 

I have known Debbie and her husband, Marshall, for over 20 years. While Debbie 

hails from New York, I think of her as an honorary South Dakotan not just because 

of the amount of time she has spent in the State, but because of the heartland values she embodies. 

Debbie will provide extraordinary leadership as the chair of NCUA. President 

Obama has nominated a very qualified candidate to protect the safety and soundness of the Nation’s credit unions during this difficult economic time. I urge the 

Committee to support her nomination and report it to the full Senate for approval. 

PREPARED STATEMENT OF DEBORAH MATZ 

TO BE CHAIR OF THE BOARD OF THE NATIONAL CREDIT UNION ADMINISTRATION

JULY 22, 2009 

Thank you Senator Johnson and Members of this Committee for holding this 

hearing. 

I appreciate this opportunity to come before you as President Obama’s nominee 

to Chair the Board of the National Credit Union Administration. It is an honor to 

have been nominated by the President, and it is a privilege to appear before this 

Committee. If I could just take a few minutes, I’d like to introduce my family members who have joined me today. Marshall, my husband of 31 years, is here with our 

daughter, Hayley, who until recently worked for the Senate and is now press secretary at the SBA. Our son, Peter, is working in California and could not join us— 

but he is watching online! 

This is an extraordinary time in the history of financial institutions—including 

the credit union industry. The current challenge has demonstrated the need for financial regulators to be independent, insightful, and innovative; to value transparency and accountability. Financial regulators need to be visionary, strong leaders 

and adept at implementing systemic change. These are traits that permitted me to 

accomplish a great deal when I previously served as an NCUA Board member, from 

March 2003 until September 2005, and will be even more important as Board Chair 

in these difficult times. 

For the three-and-one-half years of my term, I worked diligently to fairly and 

thoughtfully implement the Federal Credit Union Act and to ensure the safety and 

soundness of the Nation’s then 9,000+ federally insured credit unions which, at the 

time, held some $600 billion in deposits. 

If I am fortunate enough to be confirmed, my first priority will continue to be ensuring the safe and sound operation of federally insured credit unions. Closely related goals will be to make certain that NCUA thoroughly applies all relevant consumer protections, promotes tools such as improved financial education, and encourages credit unions to reach out to serve all eligible consumers. 
9 

Perhaps my most notable accomplishment during my previous service was encouraging credit unions to reach out to those in their field of membership who may fall 

prey to unscrupulous lenders. Through a series of workshops which I initiated called 

Partnering and Leadership Successes (PALS), we taught thousands of credit union 

officials best practices for serving these populations. Credit union leaders learned 

that providing an alternative to predatory lenders is not just the right thing to do, 

it is good business. 

It was also through my efforts that NCUA established an Office of Small Credit 

Union Initiatives. This office serves as a resource to provide technical and financial 

assistance to small credit unions, which tend to serve the lowest income populations. 

After my NCUA service, from 2006–2008, I served as Executive Vice President 

and Chief Operating Officer at a Maryland credit union. This permitted me to experience firsthand the effect of regulations on credit union operations. It sensitized me 

to the need for effective, rather than excessive, regulation. My 26-year Government 

career, of which I am very proud, includes 10 years on Capitol Hill as an economist 

with the Joint Economic Committee, and 8 years as a senior executive at the Department of Agriculture; three as Deputy Assistant Secretary for Administration. 

Recently, as I know you are aware, corporate credit unions experienced problems 

with mortgage-backed securities that significantly affected their balance sheets. 

This necessitated the conservatorship, by NCUA, of the two largest corporates, U.S. 

Central and WesCorp. While the severe economic downturn which propelled the corporate credit union crisis was not predictable, there are steps that could have been 

taken which might have mitigated or prevented its effect on these institutions. In 

2002, the last time NCUA wrote a corporate regulation, I cast the lone vote against 

it. I did not believe the crucial issue of risk concentration was adequately addressed. 

Additionally, I believed that the investment authority being granted was overly 

broad and permissive, particularly in light of the complexity of the financial instruments that were available to the corporates. 

I mention this to underscore my view of the role of a regulator as someone who 

listens, gets the facts and makes independent judgments. If I am confirmed and assume the Chairmanship, I will apply these principles as NCUA begins a new round 

of corporate rule making to address the current problems. It is my commitment to 

you that, during the rule-making process, I will consider all viewpoints, insist on 

thorough analyses of data, be deliberative in approach and develop a rule that provides both appropriate safeguards and sufficient opportunities for credit unions to 

thrive. 

The stress and uncertainty of the corporate situation has been difficult for the 

credit union industry. However, Congress has encouraged credit unions to continue 

to offer quality products to consumers. I want to echo that desire—credit unions 

have proven throughout their history to be the consumer’s best friend. If confirmed 

as their regulator, I hope to establish a strong working partnership with the industry while maintaining the critical arm’s-length relationship between a regulator and 

the regulated. I assure you that I will regulate and supervise credit unions closely, 

guide them where appropriate, make forceful suggestions, and always appeal to 

their commitment to their members. This is the promise that a strong and credible 

Federal regulatory voice can and should help credit unions fulfill. 

I appreciate the chance to appear before you today and look forward to working 

with Congress if I am confirmed. Thank you. 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 

RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN DODD 

FROM DEBORAH MATZ 

Q.1. The Administration is proposing to create a separate Consumer Financial Protection Agency (CFPA) which would cover both 

regulated and unregulated entities in order to ensure consistent, 

marketwide regulation of mortgage and consumer credit. Do you 

agree that such consistency in consumer protection regulation for 

all lenders is important? 

A.1. First and foremost, consumer protection should be an absolute 

priority for all financial institution regulatory entities. During my 

prior service on the NCUA Board I demonstrated a strong and 

thorough commitment to making certain that consumers received 

adequate protections from the NCUA, and I will renew this commitment should I become Chairman. This essential role for financial regulators has assumed greater importance given the complex 

and rapidly changing nature of financial markets, and the associated events that have caused or exacerbated the current economic 

difficulties. 

I strongly support increased consistency in the consumer protection regime, as contemplated in the proposed CFPA. If Congress 

decides to consolidate consumer protection functions under a single 

regulatory entity, as is currently being proposed by President 

Obama, I would do everything I could as NCUA Chairman to assist 

in these efforts and provide constructive suggestions as to how to 

make a new system work better for credit unions and their members. As I stated during my testimony before the Senate Banking 

Committee, consumer protection must be a principal concern for 

any financial regulator, and I would encourage Congress and the 

President to devise a system that improves the effective oversight 

of consumer protection through streamlined, coherent regulatory 

processes and elimination of duplication. I also believe that it 

would be beneficial to construct the new agency in a way that minimizes costs and administrative burdens on the financial institutions themselves, and maximizes the efficient delivery of consumer 

protection functions. 

Q.2. To that end, do you agree that, assuming the CFPA is created, 

it should have rule-writing authority that covers all regulated and 

unregulated financial institutions? 

A.2. Yes. Consumers will benefit from any enhancements to regulatory authority that tangibly improves consistency and efficiency 

in the administration of consumer protection regulations. Rule 

making is an essential part of regulatory oversight; it ensures practical effects in the marketplace. I would favor any improvements to 

the overall regulatory structure that highlight efficiencies inherent 

in a consolidated consumer protection-focused entity, while at the 

same time complement the safety and soundness practices of current functional regulators. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR VITTER 

FROM DEBORAH MATZ 

Q.1. Ms. Matz, on July 20, 2009, the Credit Union Journal reported that you are preparing to hire your two top staff, and that 
22 

that these staffers have been involved with industry groups that 

lobby the NCUA. 

How can you assure this Committee that the NCUA, under your 

supervision, will be able to remain independent under these circumstances and refrain from showing favoritism for the interest of 

those groups that previously employed your staff? 

A.1. I was not interviewed for this article and do not know the 

basis for the article. As you may know, I served on the NCUA 

Board from 2002–2005 and was widely regarded as a person who 

is judicious, independent and has high ethical standards. If confirmed by the Senate as NCUA Board Chair, I assure you that 

these traits will once again define my tenure. I have not offered positions to anyone—and will not do so until I am confirmed.