NASCUS PRESIDENT & CEO LUCY ITO ON THE SEPTEMBER NCUA BOARD MEETING

September 19, 2019

NASCUS PRESIDENT & CEO LUCY ITO ON THE SEPTEMBER NCUA BOARD MEETING

ARLINGTON, Va. – Today, the NCUA Board approved final rules on supervisory committee audits, Federal credit union bylaws and payday alternative loans. The board also heard a quarterly report on the National Credit Union Share Insurance Fund.

NASCUS President and CEO Lucy Ito issued the following statements in response to today’s meeting.

On the Final Rule, Part 715, Supervisory Committee Audits:
“NASCUS acknowledges NCUA’s efforts to provide federally insured credit unions with greater flexibility. As stated in our comment letter, we support replacing the NCUA Supervisory Committee Guide with the option to obtain an audit that meets stipulated requirements included in the new Appendix A to Part 715. However, we will closely examine the final rule to determine if it will lead to increased costs to credit unions. We continue to hold that an increase in costs must be justified by the supervisory value provided.”

On the Final Rule, Part 701, Appendix A, Federal Credit Union Bylaws:
“While the final rule only applies to federal chartered credit unions, we urge state-chartered credit unions to review their state bylaw requirements for federally insured state charted credit unions.”

On the Final Rule, Part 701, Payday Alternative Loans II:
Similar to the Federal credit union bylaws rule, the payday alternative loans II rule only applies to federal credit unions. Federally insured state-chartered credit unions should look to state law and state regulation for their ability to make these types of loans.”

On the Share Insurance Quarterly Report:
“We note the National Credit Union Share Insurance Fund’s net income of $79.1 million and the agency’s stewardship of credit unions’ funds. We anticipate NCUA’s overhead transfer rate review in 2020 and are hopeful that the agency will continue to employ a “principles-based approach” while balancing emerging systemic risks and returning excess funds to credit unions.”

Information Contact:
Shelton Roulhac, Vice President, Communications, sroulhac@nascus.org or (703) 528-5974

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.

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