July 06, 2020

NAFCU to NCUA: Joint share account proposal provides targeted relief

NCUAIn response to the NCUA's proposed rulemaking on joint ownership share accounts, NAFCU Senior Regulatory Affairs Counsel Kaley Schafer thanked the agency for "providing this targeted, regulatory relief." The rule was proposed at the NCUA Board's May meeting and provides parity with changes made for banks by the FDIC in 2019.

“Although this proposal suggests a minor change, it provides immense regulatory assistance,” wrote Schafer. “NAFCU has long sought, and continues to advocate for, streamlined NCUA regulations and this proposal is a prime example.”

Under the rule, federally-insured credit unions may use information in account records establishing co-ownership of the share account to satisfy the signature card requirement.

"NAFCU members are supportive of the proposal and ask that the NCUA continue to provide examples of account information and evidence that may utilize under the alternative method and ensure that credit unions may use the alternative method for all current members,” Schafer added.

In a NAFCU Regulatory Alert sent last month to members, the association also highlighted that information in account records can take many forms, including the availability of an access mechanism for each co-owner or use of the share account by each co-owner.