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February 27, 2008 - The National Credit Union Administration (NCUA) Outreach Task Force (OTF) issued a report to the NCUA Board February 26 recommending efforts to collect federal credit union (FCU) membership information, disclose FCU senior executive compensation and increase outreach efforts.
The Outreach Task Force (OTF) was born out of a recommendation from the NCUA’s Member Services Assessment Pilot Program (MSAP) to review the agency’s current role and efforts with respect to federal credit union service to members and to respond to recommendations from both the MSAP and the Government Accountability Office (GAO).
The report makes 12 recommendations to the NCUA Board in four areas: membership profile and financial services; senior executive officer compensation; low-income definition; and outreach. The NCUA Board is reviewing the recommendations and no immediate action is expected.
The direct applicability of the report’s recommendations to state-chartered, federally insured credit unions (FISCUs) is narrow. NASCUS plans to discuss the report in meetings with NCUA Board members in conjunction with the Credit Union National Association’s Governmental Affairs Conference (GAC) next week and in April at the annual NASCUS/NCUA National Regulators Meeting.
“The report of the Outreach Task Force, chaired by NCUA Board member Gigi Hyland, to the NCUA Board appears to be a thorough examination of the assessments and recommendations from its Member Services Assessment Pilot Program,” said NASCUS President and CEO Mary Martha Fortney. “NASCUS appreciates the OTF’s extensive research and proactive efforts to meet and dialogue with the credit union community throughout the project.”
“NASCUS and state regulators look forward to opportunities for further review and discussion of the report’s recommendations which may affect state-chartered, federally insured credit unions.”
A summary of the report’s recommendations follows:
Membership Profile and Financial Services
• Collect FCU membership profile data through AIRES examination process.
• Collect financial services data on the 5300 Call Report.
• Publish aggregate data on financial services and membership profile in a NCUA publication.
Senior Executive Officer (SEO) Compensation
• Use AIRES to collect SEO information for FCUs and federally chartered corporates and publish the aggregate data in a NCUA publication.
• Promulgate a regulation requiring FCUs and federally chartered corporates to disclose SEO compensation annually to their members.
Low-Income Definition
• Revise NCUA Regulations to replace Median Household Income (MHI) with Median Family Income (MFI) as one of the standards for qualifying as low-income.
• Include a grandfather provision of five years to allow transition time for credit unions to meet the new standard.
Outreach
• Expand outreach programs and emphasize regional involvement to include more federally insured credit unions that serve or have the ability to serve members of low or moderate income.
• Improve oversight of Community Development Revolving Loan Fund.
To view the report, click here.
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