Comments Due to NAFCU: NCUA - OTR Methodology

Calendar Thumbnail - Comments Due to NAFCU

August 15, 2017

In a voluntary effort to invite input from stakeholders, the NCUA Board is seeking comments on proposed changes to the Overhead Transfer Rate (OTR) methodology. NAFCU would like to highlight the following:

  • The current OTR methodology was established in 2003 to be an objective measure for recognizing NCUA’s dual role as (1) an insurer and as (2) a charterer, regulator, and supervisor.
  • The methodology employs a cost-accounting analysis to objectively allocate agency resources spent toward this dual role.
  • The proposed changes would reduce the resources needed to administer the OTR, in part, by eliminating the requirement for NCUA staff to account for their time.
  • Under the proposed methodology, federal credit unions would have had to pay $119.2 million in operating fees for 2017, a 24 percent increase from the current fee.

Regulatory Alert: 17-EA-18: NCUA - OTR Methodology (member-only; login required)

Take the NAFCU Member Survey for Comments (Comments due to NAFCU by August 15, 2017)

NAFCU will send comments on behalf of its members to the NCUA by their deadline (August 29, 2017).