July 18, 2012 – The NCUA Board is poised to decide how much to assess natural person credit unions for corporate stabilization costs, set the federal credit union loan rate ceiling and issue a rule on what defines a “troubled” credit union during its open meeting July 24.
The agency last year estimated this year’s stabilization assessment at a range of 8-11 basis points, or an amount equal to 0.08-0.11 percent of insured shares. The FCU loan rate ceiling, set at 18 percent, is scheduled to revert to 15 percent Sept. 10 unless the board takes action.
NAFCU, noting a recent trend upward in interest rates and the negative impact on credit availability if the cap is reduced, has strongly recommended that the 18 percent ceiling be continued.
Next week’s open meeting agenda also includes:
- a board briefing on an interagency proposal under the Truth in Lending Act;
- a proposed rule under Section 701.14 of NCUA’s Rules and Regulations on the definition of “troubled condition”;
- NCUA rules on access to emergency liquidity;
- a quarterly report on the National Credit Union Share Insurance Fund; and
- reprogramming of NCUA’s 2012 operating budget.
NCUA is involved in a couple discussions with banking agencies and the Consumer Financial Protection Bureau on Truth in Lending Act issues related to real estate appraisals and national mortgage servicing standards.
The open meeting is set for 10 a.m. at agency headquarters in Alexandria, Va. This month’s closed session is set one day in advance, on July 23.