news.cuna.org/articles/109998-comments-on-otr-operating-fee-rural-lending-operations-due-in-april

Comments on OTR, operating fee, rural lending operations due in April

April 4, 2016

WASHINGTON (4/4/16)--April brings with it a number of comment deadlines on regulatory issues, starting with today’s deadline to comment on the National Credit Union Administration’s (NCUA) draft 2017-2021 strategic plan.

The NCUA’s strategic plan summarizes NCUA's analysis of the internal and external environment impacting the NCUA, evaluates their programs and risks and provides goals and objectives for the next five years.

The NCUA’s three goals for 2017-21 are: ensuring a safe and sound credit union system; promoting consumer protection and financial literacy; and to cultivate an inclusive, collaborative workplace.

Also due today are comments on the revised layout of the U.S. Treasury’s Financial Crimes Enforcement Network Bank Secrecy Act Currency Transaction Report.

The Credit Union National Association submitted its letter last week, generally supporting the changes while calling on FinCEN to work with regulators to ease examination and compliance burdens on credit unions.

Other April deadlines include:

  • April 23: Consumer Financial Protection Bureau interim final rule on operations in rural areas under the Truth in Lending Act. The rule implements changes signed into law in December that concerns the eligibility of certain small creditors in rural or underserved areas for special provisions that permit the origination of balloon-payment qualified mortgages and balloon-payment high cost mortgages and for an exemption from the requirement to establish an escrow account for higher-priced mortgage loans and the determination of whether an area is rural for the purposes of Regulation Z;
     
  • April 26: NCUA request for comment on its operating fee schedule. The request focuses on the methodology the NCUA uses to determine the aggregate amount of operating fees charged to federal credit unions, with a focus on whether the asset determination thresholds are reasonable and is the method for forecasting projected asset growth for the credit union system reasonable;
     
  • April 26: NCUA request for comment regarding its overhead transfer rate (OTR) methodology. This request also focuses on the methodology on the portion of the NCUA’s budget that will be funded by the share insurance fund. NCUA is focusing on whether it should use a formula, the definition of insurance-related activities, adjustments to the current calculations and alternate methodologies.

CUNA was a strong advocate in recent years for the NCUA to publish the methodologies for both the operating fee and the OTR. CUNA has expressed concerns in recent years, particularly prior to the unveiling of each year’s budget, that the OTR is at an all-time high.