The NCUA board unanimously approved a proposed rule on the Community Development Revolving Loan Fund (CDRLF) and an interim final rule on statutory inflation of civil money penalties (CMPs) Thursday at its monthly board meeting.
The agenda also included a board briefing on changes to interest rate risk supervision and adding “S” to the CAMEL rating system.
Proposed rule on CDRLF
The proposal would make several technical amendments to the NCUA’s rule governing the CDRLF. The fund provides grants and loans to low-income designated credit unions.
The proposed amendments are designed to make the rule more succinct (by eliminating unnecessary processes and adopting current practices) and update it to improve its transparency, organization and ease of use by credit unions.
Specific changes include removing the maximum aggregate loan amount of $300,000 for CDRLF loans;
The proposal will have a 60-day comment period, starting when it is published in the Federal Register, which should be in the coming days.
Statutory inflation of civil money penalties
The interim final rule would amend the agency’s CMP regulations to require the NCUA to review and adjust its CMPs for inflation on an annual basis. This is required under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
The law requires the NCUA to adjust the maximum CMP amounts, but does not require assessments be made at the maximum level.
According to the NCUA, it has never assessed a CMP at the maximum level.
The NCUA is required to publish the final rule in the Federal Register by July 1, and the rule must be effective by Aug. 1.
More information on the meeting can be found on CUNA’s Removing Barriers Blog.