ALEXANDRIA, Va.—When the NCUA board meets on Thursday it is scheduled to issue two final rules: one on real estate appraisals for non-residential, rural loans, and another on fidelity bonds.
The board will also issue a proposed interpretive rule and policy guidance related to a section of the Federal Credit Union Act concerning convicted criminals and discuss the 2019 mid-session budget, the agency said.
The real estate appraisals proposal increases the threshold for non-residential, rural real estate-related financial transactions to be exempt from formal appraisal requirements from $250,000 to $1 million, among other reforms, NAFCU noted, adding that later this summer, the agency is expected to issue a proposed rule for residential real estate appraisals.
Four Objectives
NCUA has said its proposed rule on fidelity bonds aims to address four objectives:
- Strengthen a board of directors' oversight of a credit union's fidelity bond coverage
- Ensure an adequate period of time to discover and file covered claims following a credit union's liquidation
- Formalize a legal opinion that permits a natural person credit union's fidelity bond to include coverage for certain credit union service organizations (CUSOs)
- Clarify the documents subject to the NCUA Board's approval and require all bond forms receive the NCUA Board's approval every 10 years
NAFCU Response
NAFCU has argued that the proposed changes will actually increase credit unions' regulatory burden and costs, rather than reduce them. The association recommended the agency re-evaluate the proposal and offered some suggestions to improve it.
The meeting will begin at 10 a.m. ET. CUToday.info will provide complete coverage.