Recent Activity
In January 2022, in response to NAFCU’s advocacy on the issue, the NCUA announced a more than 23 percent decrease in credit union operating fees. NAFCU had previously written to the NCUA urging that any Operating Fund surplus balance be returned to credit unions, and NAFCU’s comment and testimony on the NCUA’s 2022–2023 budget also included this request.
On November 20, 2019, NAFCU’s Chief Economist and Vice President of Research Curt Long testified before the NCUA Board on its proposed budgets for 2020 and 2021. Long reiterated NAFCU’s call for prudent management of funds by suggesting ways to improve accountability, including: cost-benefit analysis for NCUA programs as well as its rules; exam modernization efforts; the expiration of the NCUA Guaranteed Notes (NGN) program; and ensuring the rulemaking process effectively addresses risk. At the December NCUA Board meeting, the Board approved the operating budgets for 2020 and 2021 largely as proposed.
On October 17, 2018, NAFCU Board of Directors Chair and President/CEO of JetStream Federal Credit Union Jeanne Kucey testified before the NCUA Board on its proposed budgets for 2019 and 2020. Kucey urged the agency to pursue an ongoing, agency-wide commitment to eliminating duplicity and creating an efficient budget that can be maintained long-term without relying on annual increases. On October 23, 2018, NAFCU submitted comments to the NCUA affirming Kucey’s testimony.
Also of note, Section 212 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), which was signed into law by President Trump on May 24, 2018, amends Section 209(b) of the Federal Credit Union Act to require the NCUA to publish a draft of its annual “detailed business-type budget” in the Federal Register, hold a public hearing on the draft, and address comments submitted by the public. This does not change regulatory requirements for credit unions and is in line with the NCUA’s process over the last couple of years.