The NCUA board will vote on final appraisal and fidelity bonds rules at its July 18 meeting, according to the agenda released Thursday. The agenda will also include a look at the 2019 mid-session budget and a proposed interpretive rule and policy statement on guidance regarding prohibitions imposed by section 205(d) of the Federal Credit Union Act.
Section 205(d) of the Federal Credit Union Act prohibits, without the prior written consent of the NCUA board, “any person who has been convicted of any criminal offense involving dishonesty or breach of trust or has agreed to enter a pretrial diversion or similar program in connections with a prosecution for such offense” from participating directly or indirectly with the affairs of any insured credit union.
CUNA noted several concerns in December 2018 about NCUA’s appraisals proposal, which would reorganize the agency’s appraisal regulation to make it easier for readers to determine whether, and if so by whom, an appraisal is required, as well as increase the threshold for required appraisals on commercial loans to $1,000,000. In addition to supporting the proposed threshold increase, CUNA’s comment letter recommended several substantive changes.
NCUA’s fidelity bonds proposal stems from a recommendation from NCUA’s Regulatory Reform Task Force, and while CUNA supports several parts of the proposal that would offer clarity, it also had several concerns.