Full agenda on tap for June 18 NCUA board meeting

June 12, 2015

WASHINGTON (6/12/15)--The National Credit Union Administration board will address six issues on its agenda at its meeting at 10 a.m. (ET) June 18.

The meeting will be available to livestream via a link on the NCUA’s home page,, 15 minutes before it begins.

Agenda items include:

  • Final interagency rule, Part 760, regarding loans in areas with having special flood hazards. NCUA, the Office of the Comptroller of the Currency (OCC), Federal Reserve Board, Federal Deposit Insurance Corp. (FDIC) and Farm Credit Administration are proposing to implement provisions in the Homeowner Flood Insurance Affordability Act of 2014 and possibly the Biggert-Waters amendment. The proposal establishes mandatory requirements on the escrow of flood insurance payments for loans made on or after January 1, 2016, and include exceptions to the requirement for credit unions with assets of less than $1 billion. Also, the plan would create an exception for home equity lines of credit, which was a concern detailed in CUNA's comment to the 2013 proposed rule;
  • Board briefing, final interagency policy statement establishing joint diversity assessment standards. The statement, issued earlier this week, would establish joint standards for assessing diversity policies and practices of the institutions regulated by NCUA, the Federal Reserve Board, the Consumer Financial Protection Bureau, FDIC, OCC and the Securities and Exchange Commission. The statement is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010;
  • Final interpretive ruling and policy statement (IRPS) 13-1, minority depository institution preservation program. The Dodd-Frank Act requires NCUA to consider how goals such as the preservation of the present number of minority credit unions and their minority character can be accomplished in cases involving mergers or acquisitions. The act also directs NCUA to consider how to provide technical assistance to prevent insolvency of minority credit unions that are not currently insolvent; provide for the creation of new minority credit unions; and provide for training, technical assistance and educational programs. NCUA’s IRPS would establish a Minority Depository Institution (MDI) program. The program is reflective of ones established in 1989 under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) for the FDIC and the now-defunct Office of Thrift Supervision, in response to the failure of the Federal Savings and Loan Insurance Corp. Under the 2010 Dodd-Frank Act, FIRREA was applied to the NCUA, OCC and the Federal Reserve Board;
  • Notice and request for comment, regulatory review in accordance with the Economic Growth and Regulatory Paperwork Reduction Act (EGRPPA). This is the third NCUA EGRPRA regulatory review. Under EGRPRA,federal financial institution regulators, with the exception of the NCUA, are required to review their rules at least once every 10 years. The NCUA voluntarily participates in this process;
  • Federal credit union loan interest rate ceiling. By law, NCUA must review the rate ceiling annually. In January 2014, the board approved an 18% ceiling through Sept. 10, 2015. The Federal Credit Union Act generally limits the interest rate ceiling at 15% but can increase it after considering certain statutory criteria; and
  • Proposed rule, Part 723, regarding member business lending (MBL). NCUA has said in its regulatory review agenda that it is examining its MBL rules.