May 15, 2014

NCUA Board to seek input on rules, hear stabilization fund report

May 16, 2014 – NCUA's Board is poised to request comments on the Economic Growth and Regulatory Paperwork Reduction Act and hear a quarterly report on the Temporary Corporate Credit Union Stabilization Fund during its May 22 open meeting.

The board will also consider a request from AERO FCU in Glendale, Ariz., to add two underserved areas to its charter.

The Economic Growth and Regulatory Paperwork Reduction Act requires NCUA to publish notice of its rules and regulations by category and to invite comment on which rules are outdated, unnecessary or unduly burdensome. NAFCU will use the opportunity presented by this request for comments to emphasize the need for regulatory relief for credit unions. The association has a "dirty dozen" list of current rules in hand now that it would like to see eliminated or improved.

NCUA won $1.4 billion in a settlement from JPMorgan Chase last fall related to recoveries on corporate credit union losses on mortgage-backed securities. NAFCU has called for a rebate once total costs are paid and the temporary stabilization fund expires in 2021. NCUA Chairman Debbie Matz said that a rebate could be paid after the fund expires.

Credit unions have paid about $4.8 billion in stabilization costs since the fund's creation. No assessment is slated for 2014. NAFCU has asked NCUA for more details on the stabilization fund's costs in requests submitted under the Freedom of Information Act.

Next week's open meeting is at 10 a.m. Eastern.