John Herrera should not COUNT on joining the National Credit Union Administration's Board any time this year.
That's because Herrera's nomination by President Obama to fill the open NCUA Board seat is now the latest name that has been added to a growing list of federal nominations stalled in the Senate Banking Committee.
He joins 30 other potential appointees awaiting confirmation by the Republican-controlled panel.
So industry insiders say Herrera, who is currently senior vice president for Latino/Hispanic affairs at Durham, N.C.-based Self-Help, as well as co-founder and board chairman at $217 million Latino Community Credit Union (also in Durham), should expect to stay in North Carolina for now.
"Congress sometimes acts in interesting ways, so I am always optimistic, but I think it is a longshot that it would happen before the [presidential election]," former NCUA Chairman Debbie Matz told Credit Union Journal.
If confirmed, Herrera would fill the vacancy caused by Matz's unexpected resignation earlier this year. Although Matz had been serving as a holdover for quite some time, her decision to depart prior to a successor being named took the industry by surprise.
The Senate Banking Committee — and its Republican chairman, Richard Shelby of Alabama — have been in the spotlight recently as they have also delayed the confirmation of NCUA Board Member J. Mark McWatters for a seat the president appointed him to on the Export-Import Bank Board.
The McWatters appointment to the Ex-Im Bank was another big surprise to the industry, as the Republican board member wasn't even midway through his six-year term on the NCUA board.
One of the biggest problems facing Herrera's nomination, or any of the nominations awaiting confirmation in the Senate, is "nobody wants to let anyone through," said Geoff Bacino, partner at Bacino & Associates in Virginia.
Indeed, when the Senate is controlled by the opposite party that is in the White House, it's not uncommon to see a certain amount of foot-dragging, particularly thise close to a presidential election.
Carrie Hunt, executive vice president of government affairs and general counsel at the National Association of Federal Credit Unions, agreed. "As with any nomination, it's hard to predict the path for confirmation, particularly in an election year," Hunt noted.
And the fact that Congress just started a seven-week break from legislative activity on July 18 will only add to what CUNA's Chief Advocacy Officer Ryan Donovan described as a "stalled" process that has persisted for months.
By law, the NCUA board can have only one member with recent experience working at a credit union, something Herrera undoubtedly has.
"I think from that standpoint it's always good to have that expertise at the NCUA," former CUNA Deputy Chief Advocacy officer for Executive and Regulatory Affairs and Senior Counsel Mary Dunn, who is now a partner at Washington-based CU Counsel.
John McKechnie, senior partner at Total Spectrum, also based in Washington, who was appointed as Director of Public and Congressional Affairs at the NCUA where he served for five years, suggested nominations might be halted until after the elections later this year.
"The road to Senate confirmation for a large number of nominees appears blocked at this point, for reasons that have more to do with politics than policy," McKechnie said.
Sen. Shelby has restricted attempts to bring stalled nominations to a vote. In the meantime, the Ex-Im Bank has been unable to approve transactions valued at more than $10 million without a board quorum that is reliant on the confirmations. The U.S. Federal export credit agency has a history of divide amongst the nation's two major political parties.
In the event Herrera's nomination is held until after the election and a new president is sworn into office, insiders say it's still unlikely for an incoming president — Democrat or Republican — to move forward with term-position nominees who were not chosen by their administration.
"Every administration likes to hold nominees for themselves," Bacino said, "The slate is really wiped clean, even if the incoming administration is from the same party."
CU advocates have hailed Herrera as a champion of the CU movement. The Costa Rica-born Herrera also served on North Carolina's Credit Union Commission from 2003 to 2010 and is co-founder of El Pueblo Inc., a statewide Latino policy organization.
Herrera had been previously recognized by the Obama administration for his work in the credit union industry; in May 2013 he was honored by the White House as an Immigrant Innovator Champion of Change. The award recognizes an individual who has helped create American jobs, grow the economy and increase the competitiveness of the nation.
CUNA's Donovan stated Herrera's nomination "indicates that the continued safety and soundness of the CU system remains a priority for the administration."
McKechnie shared a similar sentiment; he noted Herrera has a "strong resume." He added the nomination "speaks well of the credit union movement's commitment to serving all segments of the consumer finance marketplace."
Matz also praised Herrera's nomination.
"I would be honored to have John succeed me in taking my seat on the board, she said." I was so impressed by how he worked with the Latino community and provided financial literacy and helped them understand the importance of using an insured financial institution."
