NCUA Board Meeting to Be Held July 30

NCUA

The National Credit Union Administration (NCUA) Board will meet Thursday, July 30, at 7 a.m. (Pacific).

The board’s agenda includes: 1) Final Rule, Part 701, Appendix B, Chartering and Field of Membership; 2) Proposed Rule, Part 702, Transition to Current Expected Credit Loss (CECL) Methodology; 3) Proposed Rule, Part 701.6, Fees Paid By FCUs; 4) Request for Comment, Overhead Transfer Rate and Operating Fee Methodologies; 5) Board Briefing, 2020 Mid-Session Budget.

The board will vote on a final field of membership (FOM) rule to make the rule consistent with last year’s decision from the U.S. Court of Appeals for the D.C. Circuit in a lawsuit brought by the American Bankers Association (ABA). Earlier this month the U.S. Supreme Court ruled it will not hear an appeal by the ABA, thus ending the litigation.

We expect the proposed rule for CECL transition and implementation to include a three year phase-in of the adverse effects from day-one capital adjustments. We will have to wait and see what the proposed rule for Fees Paid by FCUs will cover. As you know, FCUs pay an annual operating fee to the NCUA based on a schedule fixed by the NCUA Board “from time to time.” Generally speaking, operating fees are based on the total assets of each FCU as of Dec. 31 of the preceding year.

The board is also considering a “Request for Comment” on the Overhead Transfer Rate (OTR). The last time the NCUA Board solicited comments on the OTR was in June 2017, and a new methodology was adopted by the Board in November 2017.

The Leagues will monitor the board meeting and provide an update soon after. NCUA Board meetings are broadcast via livestream video and can be accessed from NCUA’s homepage at www.ncua.gov. Open board meetings are also tweeted live; follow @TheNCUA on Twitter.

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