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When it comes to talking with your examiner from the National Credit Union Administration, you don’t want to end up quoting this line from the 1967 movie, “Cool Hand Luke”: “What we’ve got here is failure to communicate!” Indeed, establishing a strong, effective dialog with the regulator over time will be beneficial to your credit union and its membership.
So, let’s take a few moments to talk about how to make talking with your NCUA representative a truly successful undertaking.
Let’s be honest! Dealing with a regulator is not one iota different from collaborating with anyone else where there is a need to achieve conclusions that meet the desires of the parties. There is no magic! People are people; it’s all a matter of good human relations.
Keeping that in mind, a good place to start your efforts to have a great dialog with your regulator is to be sensitive to the circumstances surrounding a particular conversation, as it will prepare you to be focused to communicate in an effective way.
For example, when an examination is in progress, material discussion of the items under examination is likely. It’s possible that some disagreement may exist. A credit union may also be talking to its regulator with the purpose of gaining approval for a particular initiative (say a field of membership expansion), to update NCUA about ongoing operations, or to plant a seed about a future undertaking. Going in with your purpose in mind will help you get your point across.
The second rule in dealing with a regulator is: Place yourself in their shoes. Think hard about where the regulator is coming from; understand their need and what they are trying to accomplish. You want the regulator as well as yourself to be comfortable with the outcome.
Third, be sure to apply smart interpersonal communication skills. This most certainly does not mean “sucking up” to the regulator. It does mean being your genuine self in dealing with her or him. Try the following:
Listen to what the regulator is saying. Be engaged in what the regulator is telling you. Don’t be so focused on your point of view that you have shut out the “other side of the story”!
- Display body language that conveys that you are involved and considering, not rejecting, the points made by the regulator, and that you are open to the position and/or points being raised.
- Provide feedback to the regulator that is unemotional, reasonable and thoughtfully addresses the issue being confronted or that moves the credit union in the direction that it wishes to achieve.
- Control your emotions. Advance the thoughts or views supporting the institution’s position in the matter calmly and rationally.
The final obligation in dealing with the regulator is to be mindful of Yogi Berra’s admonition, “It ain’t over till it’s over”!
No matter what type of meeting you are in with NCUA, the outcome is never final! There is always a route to having the outcome reviewed. When you have to revisit an issue, rest assured that a more thoughtful approach will result—from both sides. That is, you will produce a documented statement of position or desire and that will be considered in a different light from before.
At bottom, be aware of four thoughts in meetings with the regulator. Be sensitive to the situation in which the conversation will be conducted, and what issues are to be discussed. Know that the regulator is no different than you; he or she is a human being who will conduct himself/herself with the same feelings and reactions as you. Understand where the regulator is coming from; what their wants and needs are. And, recognize that no matter the outcome, there is always an avenue of recourse.
Regrettably, no matter how hard one attempts to communicate, sometimes it’s impossible to get your point across and find middle ground. In short, the parties' views are “ships passing in the night’! At this point, it merits stepping back. It may merit bringing in a third party to facilitate breaking open the dialog anew.
Playwright George Bernard Shaw is known for saying that “The single biggest problem in communication is the illusion that it has taken place.” If you follow the steps outlined in this article, you’ll be well on your way to ensuring that your communication with your credit union’s regulator is not only real, but effective.
Stephen A.J. Eisenberg is of counsel with CU Counsel, PLLC, Washington, D.C.
