ALEXANDRIA, Va.—NCUA on Thursday will vote on the continuation of the federal credit union loan interest rate ceiling and receive a quarterly report on the National Credit Union Share Insurance Fund, according to the Feb. 23 open board meeting agenda released by the agency.
In January, NAFCU President and CEO Dan Berger urged the NCUA board to maintain the current 18% usury ceiling after March 10, warning that allowing a drop back to 15% would be “detrimental to the safety and soundness of credit unions.”
The Federal Credit Union Act sets a cap of 15% but permits NCUA’s board to make adjustments based on certain criteria.
Also on Thursday, the board will receive a quarterly report on the NCUSIF. NCUA staff in November estimated a potential premium charge in 2017 of three to six basis points.
NAFCU said it is monitoring the financials for the NCUSIF and pushing the NCUA to only charge a premium if legally necessary. The law only requires that the agency charge a premium if the NCUSIF equity ratio were to fall below 1.2%, but the agency’s current analysis indicates the ratio is not expected to fall to 1.2% this year.
In December, NAFCU launched an NCUA Money Watch page to keep tabs on the NCUA’s budget and finances.