September 26, 2017
Thursday will be a big day for the credit union industry. The NCUA Board will deliberate on its proposal to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) and raise the normal operating level (NOL) of the share insurance fund.
Allow me to first take a moment to reiterate NAFCU's respect for the NCUA, its Board and staff and all the work they do. This is an important issue, and we appreciate the attention the NCUA has given it. Regardless of any negative comments or attacks on NAFCU's position on this proposal, we remain respectful of the people working directly on it at the NCUA.
As the trade association that had a direct hand in the creation of the NCUA and the National Credit Union Share Insurance Fund (NCUSIF), we truly appreciate the attentiveness of the agency to the credit union industry. We just simply have a disagreement over the proposal itself.
Our members' main concern with this plan is raising the NCUSIF's NOL from 1.3 percent to 1.39 percent and the precedent it would set. Not only would this be the highest NOL in the fund's history, it could result in excess money being retained by the agency that credit unions could use to better serve their members.
This is why, based on feedback from our members, NAFCU is the only national credit union trade association advocating against the NCUA's proposal. NAFCU members stand opposed to this proposal – as written – because they continue to call for a full refund from the TCCUSF.
NAFCU wants credit unions to get their money back from the TCCUSF as soon as possible, but we want you to get all of your money back – not just a portion as the NCUA's current proposal would do.
We appreciate the NCUA's efforts to find a solution to this issue and for seeking credit unions' input on its proposal. NAFCU hopes this trend will continue on forthcoming proposals in order to ensure credit unions are heard and their best interests are represented in the agency's decisions.
No matter the outcome Thursday, NAFCU will continue to listen to our members, share your concerns and advocate on your behalf. Thank you for your continued support of our association and our efforts. If you have any questions before or after Thursday's NCUA Board meeting, please feel free to contact me.
Warm regards, B. Dan Berger President & CEO