Final associational common bond, corporate CU rules on today's NCUA agenda
April 29, 2015
ALEXANDRIA, Va. (4/30/15)--It's a full slate for the National Credit Union Administration board meeting today, with consideration of two final rules and two proposed rules topping the agenda.
The board will consider a final version of the associational common bond proposal first issued last year. The proposal would establish an express prohibition that an association cannot be formed primarily for the purpose of expanding credit union membership, expand the criteria of the test used to determine if an association meets NCUA's requirements and would allow automatic approval for associations that have a "mission based on preserving or furthering the culture of a particular national or ethnic origin."
CUNA was aware of serious credit union concerns when the proposal was first issued, and in its comment letter, it addressed a number of those concerns, including:
The lack of a mechanism for adding groups outside of the rulemaking process;
The NCUA should provide more details on the actual review process, as well as guidance and a clear avenue for appeals;
A threshold test and its proposed use to automatically disqualify associations. CUNA urged the NCUA to add language that would allow it to coordinate with the credit union and association to see if had been formed solely to expand credit union membership, and then allow for an appeal; and
The NCUA should not consider geographic limitations for associational common bond matters.
The NCUA board will also vote on whether to finalize several technical amendments to its corporate credit union regulations. CUNA generally supported the changes, but in its comment letter to the agency, urged the NCUA to consider a number of other corporate credit union issues in 2015.
These include examining the role corporate credit unions play in providing liquidity to natural-person credit unions and the weighted average life treatment for government-issued or guaranteed securities.
The NCUA board will also consider proposed rules regarding:
The aggregate lending limit for corporate credit unions; and
Adding share insurance coverage to interest on lawyer trust accounts (IOLTA), which comes months after a bill allowing IOLTAs to be insured to by the National Credit Union Share Insurance Fund was signed into law.
The meeting will also feature a board briefing of an interagency final rule on minimum requirements for appraisal management companies and a quarterly update on the National Credit Union Share Insurance Fund.
Interested parties can still register to view the meeting online. A video of the meeting will be posted online by the NCUA in the next several weeks.