The NCUA Board issued an advance notice of proposed rulemaking (ANPR) Thursday on compensation in connection with loans to members. This was also the first meeting of a full, three-person board since April 2016. Rodney Hood was named chair by President Donald Trump earlier this month, and Todd Harper was sworn in as a board member earlier this month as well.
The ANPR seeks comments on ways to improve the agency’s regulations limiting credit union officials and employee compensation in connection with loans to members and lines of credit to members.
According to the agency, these regulations have generated confusion and are likely outdated, burdensome and at odds with industry standards.
NCUA is particularly interested in obtaining commenter feedback on “how it can provide flexibility with respect to senior executive compensation plans that incorporate lending as part of a broad and balanced set of organizational goals and performance measures.”
Comments will be accepted on the ANPR for 60 days after it is published in the Federal Register, which is expected in the coming days.
During his first remarks as chair, Hood said he intends to focus on several areas, including enhancing the credit union charter, enhancing cybersecurity efforts, and reducing regulatory burden.
Additional details on the meeting can be found at CUNA’s Removing Barriers Blog.