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NCUA today said a second proposal on risk-based capital – which NAFCU has been pressing for over the past year – could be issued for comment before the end of this year.

NCUA said the second proposal will be issued due to significant structural changes being considered. Board Member Rick Metsger said he strongly supports going out for a second comment period. Echoing similar comments made during NAFCU's Congressional Caucus this month, Metsger also said he supported separating interest rate risk from credit risk.

Board Member Mark McWatters, during a meeting Sept. 18 with NAFCU President and CEO Dan Berger and Senior Vice President of Government Affairs and General Counsel Carrie Hunt said he supported having a second comment period on the RBC proposal. On Monday, McWatters reiterated that position and said he wants to see a comment period of no less than 60-90 days.

Said Matz, "I have always said that another comment period would only be appropriate if we decide to make significant structural changes that would exceed the parameters of the Administrative Procedure Act. Even though the changes we are developing would pose less of a regulatory burden than the original proposal, some changes would affect the rule's structure. Based on discussions with NCUA's General Counsel, I now believe it is prudent under the APA to ask for additional comments."

NCUA said that based on stakeholder comments, the amended proposal will include a longer implementation period and revised risk weights for mortgages, investments, member business loans, credit union service organizations and corporate credit unions, among other changes.

The agency said stakeholders will also be invited to comment on an alternative approach for addressing interest rate risk using the supervisory process.

Matz anticipates the NCUA Board could issue an amended proposal before the end of 2014.