WASHINGTON (10/14/14)--While the Credit Union National Association "generally supports" the National Credit Union Administration's fixed-assets proposal, it believes the NCUA can and should provide additional flexibility.
The proposal would allow federal credit unions to exceed the 5% limit without prior NCUA approval, provided it is done by establishing and following a fixed-assets management policy. It would also simplify the partial occupancy requirement for premises acquired for future expansion.
"We generally support the direction of the proposal, but feel the agency could have gone much, much further in providing flexibility to federal credit unions by eliminating the 5% cap altogether because it's not statutory," said Mary Dunn, CUNA's deputy general counsel, in CUNA's comment letter to the agency.
CUNA's suggested changes to the proposal include:
Use the resource link to access the full letter.