NCUA to seek public comment on OTR methodology

June 14, 2017 – A request for public comment on the overhead transfer rate (OTR) methodology is on the agenda for the June meeting of the NCUA, which is now set for Friday (rather than the typical Thursday), June 23. The agenda item on the OTR is the first action contemplated by the board since it issued a comment call in spring, 2016 on the issue.

As a result of last year’s comment call, about 40 credit unions, trade groups and individuals – as well as NASCUS – posted comments. In subsequent analysis of the comments, NASCUS President and CEO Lucy Ito noted the consistency of those provided. “The letters posted show two consistent messages – that change is needed, and that thanks NCUA are in order,” she wrote in an op-ed appearing last year in Credit Union Times.

Ito pointed out that the comment letters filed voice a consistent message from the credit unions, trade groups and other stakeholders that change in how the OTR is determined and managed is in order. “With little or no exception, these letters urge the agency to make changes to the current system – and ensure a fair allocation of costs to both state and federally chartered credit unions,” Ito wrote.

In the column, the NASCUS leader also pointed out that the letters consistently praise NCUA for bringing the issue up for comment. “The second consistent message contained in nearly every comment letter we saw (including ours): Sincere thanks and gratitude to the NCUA board for bringing up this issue for comment. “The second consistent message contained in nearly every comment letter we saw (including ours): Sincere thanks and gratitude to the NCUA board for bringing up this issue for public comment. This was a big step for the agency, especially in terms of transparency -- and it is appreciated,” she wrote.

In other action scheduled at the June 23 board meeting:

  • A proposed rule on corporate credit unions;
  • A final rule on a statutory inflation adjustment of civil money penalties;
  • A final rule on freedom of information act requests;
  • A final rule, safe harbor (part 709);
  • A board briefing on the agency’s enterprise solution modernization program.