ALEXANDRIA, Va. (10/24/14)--A proposal to amend rules regarding loans in areas having special flood hazards was issued by the National Credit Union Administration at the agency's monthly meeting, part of a joint proposal with other federal regulators.
The NCUA, Office of the Comptroller of the Currency, Federal Reserve board, Federal Deposit Insurance Corp. and the Farm Credit Administration, all issued the proposal.
From left, CUNA Deputy General Counsel Mary Dunn speaks with NCUA Chair Debbie Matz after the agency's board meeting Thursday. (CUNA Photo)
The proposed rule would:
Frank Kressman, association general counsel for the NCUA, said the current proposal is likely to be part of a bigger picture when all is said and done.
"As part of the process, at least at the staff level, there's some disagreement about how to move forward with the private insurance. So there's likely to be a third proposed rule yet to come out to deal with the private insurance issue." He said. "The plan would be, once those proposals make their way through the process, they will all be finalized at once. But we don't know when that will be."
The other proposed rule discussed at the NCUA's meeting Thursday dealt with technical corrections and clarifications of regulatory provisions to corporate credit union regulations. The proposal will clarify the mechanics of a number of substantive regulatory provisions and also make several non-substantive technical corrections, according to the agency.
Some of the changes include:
"None of these proposals recommend removing or easing the regulatory constraints and requirements governing minimum capital levels, investment concentrations and maturity limits or asset credit quality standards," said Scott Hunt, director of the NCUA's Office of National Examinations and Supervision. "We continue to believe these elements of the regulation are working as intended, that is, ensuring a healthy and safe corporate credit union system."
Both proposals will be open for 60-day comment periods.