ALEXANDRIA, Va.–During a rare two-day NCUA board meeting later this week, credit unions and their trade groups will be carefully watching the nine different items currently on the agendas, with special interest being paid to whether the agency is acting on any of the input provided on its 2021/22 budgets.
NCUA Chairman Rodney Hood is convening the separate board meetings on Thursday and Friday as part of an effort to move as many of his priorities before he is likely replaced as chairman by President Biden with current Board Member Todd Harper, according to sources.
Indeed, the same sources said the reason the NCUA board will be meeting in the second week of January rather than the traditional third week is Biden will be sworn into office earlier that week, and will likely move to immediately appoint Democrats to lead numerous agencies, including NCUA.
“There are a number of issues on the agenda that we have been supportive of, or potentially supportive of,” said NAFCU’s EVP and general counsel, Carrie Hunt, pointing to proposals on subordinated debt, reg relief tied to the COVID-19 pandemic and, of course, the budget.
Hunt noted whether NAFCU continues to support those proposals will be determined by the form of the final rule.
Concerns Around RBC
One of the proposals the trade group has some concern around relates to risk-based capital, said Hunt.
“There are a number of things in which we will have to see where they end up,” Hunt added.
That includes the National Credit Union Share Insurance Fund (NCUSIF) operating level. Several NCUA board members, including Harper and former board member J. Mark McWatters, have indicated a premium assessment is likely for NCUSIF-insured CUs. But NAFCU has said the board has broad discretion over whether to charge a premium and that alternatives to doing so are available.
This week’s board meetings are expected to be the first for the newest board member, Kyle Hauptman, a Republican recently approved by the Senate. As two sources told CUToday.info, the items on the NCUA board agenda would not be there if Hood was not assured of having at least a second vote in favor.
The Agendas
The agenda for the Dec. 17 meeting includes:
- Proposed Rule, Part 701, Appendix B, Field of Membership Shared Facility Requirements
- Temporary Final Rule, Part 701, Regulatory Relief in Response to COVID-19
- Proposed Rule, Parts 703 and 721, Mortgage Servicing Rights
- Proposed Rule, Part 701, Overdraft Policy
- Final Rule, Parts 701, 702, 709, and 741, Subordinated Debt
- Board Briefing, Share Insurance Fund 2021 Normal Operating Level
The agenda for the Dec. 18 meeting includes:
- Final Rule, Part 701, Annual Operating Fee Assessment
- NCUA’s 2021-2022 Budget
- Board Briefing, NCUA Operating Fee Schedule and Overhead Transfer Rate (OTR)
Both meetings will be conducted virtually. CUToday.info will have coverage.