August 14, 2019

NCUA proposals focus of Harper, Berger meeting

Kossachev, Harper, Berger
NCUA Board Member Todd Harper (center) met Tuesday at NAFCU. NAFCU's Dan Berger (right), Ann Kossachev and Brad Thaler (not pictured) attended the meeting.

NCUA Board Member Todd Harper was at NAFCU headquarters Tuesday meeting with NAFCU President and CEO Dan Berger on a number of credit union priorities, including updates to the federal credit union bylaws, payday alternative loans (PALs) and subordinated debt – all three of which were included on the NCUA's spring rulemaking agenda.

NAFCU Vice President of Legislative Affairs Brad Thaler and Director of Regulatory Affairs Ann Kossachev also attended Tuesday's meeting.

The NCUA is expected to release a final rule this year modernizing bylaws with the intent to update, clarify and simplify the federal credit union bylaws while allowing the industry the flexibility necessary to work within their unique fields of membership. In response to the agency's proposal, NAFCU proposed several other amendments for consideration. NAFCU has long advocated for bylaws changes, offering ways to modernize as early as 2014.

Also this year, the agency is set to finalize its 2018 proposal to create additional PALs programs. NAFCU, commenting on the proposal, recommended more flexible parameters to ensure credit unions can develop a PALs option that best fits their members' needs. The association also continues to urge the CFPB to expand its payday loan rule safe harbor to all future iterations of PALs.

On subordinated debt, the NCUA issued an advance notice of proposed rulemaking in 2017 and is expected to issue a formal proposal this year. NAFCU has long supported subordinated debt as a capital option for all credit unions. As the NCUA considers an additional delay of its risk-based capital (RBC) rule, NAFCU said that "the ability to issue subordinated debt would provide important relief by permitting more efficient capital planning and could ease the transition to full compliance with RBC."

Berger and Harper previously met in April to discuss issues the association would like the agency to address; Berger has also met with NCUA Board Chair Rodney Hood and Board Member Mark McWatters. Berger outlined several regulatory priorities for the new NCUA Board earlier this year.