ARLINGTON, Va.–NAFCU said it is happy to see NCUA taking a fresh look at rules around paying CU employees based on loan volume.
As CUToday.info reported here, the NCUA board has put out for comment an Advanced Notice of Proposed Rulemaking (ANPR) on Compensation in Connection with Loans to Members. NCUA’s current rule prohibiting loan-related compensation has been in place for more than 20 years, and NCUA staff told the board it is “outdated, burdensome and at odds with industry standards.”
The proposal is now out for 60-day comment.
“This issue has been going on for a while now,” said Carrie Hunt, EVP and general counsel with NAFCU. “We’re happy the NCUA is going to take a look at it. There’s been a difference between what examiners have been saying and what (NCUA’s) general counsel’s office has been saying, so we’re glad to see some clarity in this area.”
Hunt said it’s important everyone has the opportunity to be compensated for being productive without having such compensation going “off track. We have not seen that in credit unions as we did in banks during the financial crisis.”
Neither of the trade groups has yet to provide their formal comment to the agency on the proposal.