Newsroom

October 22, 2014

NCUA Board eyes NCUSIF, talks flood insurance, corporates

The NCUA Board will hear the quarterly report on the state of the National Credit Union Share Insurance Fund at an open meeting today and will discuss a proposed interagency rule on flood insurance, as well as a proposed rule on corporate credit unions.

The board may also discuss whether it expects to assess a share insurance premium for 2014 based on the fund's status.

The proposed interagency rule comes from NCUA, CFPB and federal banking regulators and would implement the Biggert-Waters Flood Insurance Act, requiring lenders to accept private flood insurance.

The agencies, in their October 2013 proposal, solicited comments on whether they should adopt additional regulations on the acceptance of flood insurance policies issued by private insurers. That proposal would also require regulated lending institutions to escrow payments and fees for flood insurance for any new or outstanding loans secured by residential improved real estate or a mobile home – not including business, agricultural or commercial loans – unless the institutions qualify for a statutory exception.

NAFCU commented on the proposal in December. It said credit unions in rural and underserved areas have concerns with maintaining escrow accounts as it is an added cost that could ultimately limit consumer options.

The open meeting will be held at 10 a.m. at the agency's headquarters in Alexandria, Va. It will be followed by a closed session that will examine administrative enforcement action under the Federal Credit Union Act.