Ito: Vigilance correct, but use of resources vital

(Nov. 20, 2020) NASCUS President and CEO Lucy Ito shared the board members’ call for vigilance, but also urged the agency to husband its resources, as NASCUS did in a comment letter last month. Writing to the agency on its proposed methodology to calculate the overhead transfer rate (OTR) – the rate at which the agency transfers dollars from the insurance fund to the agency’s operating budget to cover “insurance-related costs” – NASCUS wrote that a higher rate means the insurance fund has less resources to face financial troubles for credit unions.

As we wrote earlier this month, every dollar the agency pulls from the insurance fund to cover the expenses of the agency is a dollar not available to cover credit union losses, such as those resulting from the financial impact of the coronavirus pandemic,” Ito said. “It also means that’s a dollar that may need to be replaced in the insurance fund through an insurance premium being charged.”

NASCUS Comment: Request for Comment, OTR and Operating Fee Schedule Methodologies