Compliance Blog

Nov 20, 2009
Categories: Business Lending

NCUA Board Meeting

Posted by Sarah Loats

NCUA conducted a busy Board meeting yesterday. The items on the agenda were:

1. NCUA's 2010/2011 Operating Budget

2. NCUA's Overhead Transfer Rate

3. NCUA's Operating Fee Schedule

4. Proposed rule for the Corporate system

5. Final rule for the NCUSIF premium and one percent deposit

6. Insurance Fund report.

The major proposed revisions to the corporate credit union rule involve 5 areas: 1) corporate credit union capital; 2) investments; 3) asset-liability management; 4) governance; and 5) CUSO activities.

NCUA Board Member Hyland hosted a free member business lending webinar on Wednesday November 18 where she stated she expects NCUA's 2010 budget to include funding to ensure that each region has appropriate expertise to ensure effective MBL examinations. See NAFCU Today's article for more on the webcast. The budget does propose $5,778,000 to implement the Annual Examination Program. The program calls for, among other things, the addition of 57 positions to the regions including 4 lending specialsts. For those of you that missed the webinar but would like to watch it, NCUA should have an archived version available soon.

Another item from the budget that caught my attention was the proposal to create the Office of Consumer Protection within the agency. The office will include 2 divisons, the Division of Consumer Protection and the Division of Consumer Access. The office will: a) provide consumer services, including consumer education and complaint resolution; b) establish, consolidate, and coordinate consumer protection functions within the agency; c) act as the central liaison on consumer protection with other federal agencies; d) nationalize field of membership (FOM) processing; e) absorb centralized chartering activities; and f) assume the activities of the agency’s ombudsman. The ombudsman investigates complaints and recommends solutions on regulatory issues that cannot be resolved at the regional level.