NCUA should quickly complete review of pending rules
CUNA wrote to NCUA Chairman Todd Harper Thursday to congratulate him on being named chairman and to outline several rulemakings NCUA should quickly review. Harper is the agency’s 12th chair and is the first chair to have previously worked on NCUA staff.
“We appreciate your transparency in identifying your top policy priorities: capital and liquidity, consumer financial protection, cybersecurity, and diversity, equity, and economic inclusion,” wrote CUNA President/CEO Jim Nussle. “These priorities are also of utmost importance to CUNA, our member credit unions, and their consumer-members. We are excited to work with you and the agency in advancing such laudable objectives.”
CUNA strongly urges NCUA to issue an interim final rule, consistent with one issued by banking agencies, that would use asset data as of Dec. 31, 2019 to determine applicability of certain asset-based regulatory thresholds.
Due to the COVID-19 pandemic and balance sheet growth as a result of new COVID-related policies, there are credit unions that could be subject to additional regulatory or reporting requirements in 2021 because they are temporarily pushed over an asset-size threshold for compliance,” the letter says.
CUNA also called on NCUA to quickly review pending rulemakings issued at the December and January board meetings, including:
- Credit Union Service Organizations (CUSOs): To expand the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union (FCU) may originate;
- Field of Membership Shared Facility Requirements: To amend the chartering and field of membership (FOM) rules to modernize requirements related to service facilities for multiple common bond FCUs;
- Mortgage Servicing Rights: To amend the NCUA’s investment regulation to permit FCUs to purchase mortgage servicing rights from other federally-insured credit unions under certain conditions.
- Overdraft Policy: To replace the 45-day limit within which a member must rectify an overdraft with a more flexible approach, permitting such action be taken within a reasonable period of time;
- CAMELS Rating System: To add the “S” (Sensitivity to Market Risk) component to the existing CAMEL rating system and redefine the “L” (Liquidity Risk) component.
- Risk-Based Net Worth, Complex Threshold: To temporarily raise the asset threshold for defining a credit union as “complex” for purposes of being subject to any risk-based net worth requirement.