ALEXANDRIA, Va.—In a brief meeting Thursday, the NCUA board unanimously approved a proposed rule to clarify and provide additional flexibility in the agency’s regulation covering required credit union supervisory committee audits.
The proposed rule amends the supervisory committee audit regulation for federally insured credit unions. The proposal is out for a 60-day comment period.
The rule makes two major changes:
- Replaces the current optional audit procedure described in the Supervisory Committee Guide with a targeted list of minimum procedures contained in a new Appendix A
- Eliminates the current 120-day time limit for receiving a third-party audit report and gives credit unions the ability to negotiate a delivery date
NASCUS responded to the proposal.
“While NASCUS is pleased that NCUA continues to follow the recommendations of the Regulatory Reform Task Force, we are carefully reviewing today’s proposal to ensure the rule would not weaken the dual charter system or infringe upon the autonomy of the state credit union system,” said NASCUS President and CEO Lucy Ito.
Other Business
The board also was briefed on a final interagency rule covering loans in special flood hazard areas.
During the briefing, NCUA staff noted the board approved, by notation vote on Jan. 31, a final interagency rule requiring federally insured credit unions to accept certain private flood insurance policies in addition to National Flood Insurance Program policies.
Federal flood insurance statutes require regulated lending institutions, including federally insured credit unions, to ensure the purchase of flood insurance for loans secured by improved real property located in areas having special flood hazards, the agency noted.
Five federal agencies, including the NCUA, issued the rule, which will take effect July 1. The rule requires federally insured credit unions to accept private flood insurance policies meeting statutory requirements and allows federally insured credit unions, under certain restrictions, to accept policies that do not meet these requirements.
Before ending the meeting, Chairman Mark McWatters addressed the confirmation hearings for the appointments of Rodney Hood and Todd Harper to the NCUA board under way in Washington as the NCUA board meeting took place.
“Todd Harper and Rodney Hood are in their hearing and I wish them the very best, and I want to be positive—saying when they are confirmed I will look forward to working with them. Although I will miss Mr. Metsger.”