COMMENT CALL: Do you wish that the NCUA would revisit some of its rules, changing requirements that are no longer needed or more trouble than they’re worth? The agency is giving you a chance to make your voice heard. It has issued a request for comment (RFC), seeking feedback on regulations that may be outdated, unnecessary, or unduly burdensome.
The federal Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) requires certain federal agencies to review their rules every 10 years. The NCUA is not statutorily required to undertake the EGRPRA review; however, it has chosen to participate in the review process.
Only certain rules are being reviewed currently
The NCUA has divided its regulations into 10 categories. Over approximately two years, the NCUA is asking for feedback on several of those categories at a time.
The current RFC focuses on three categories, each of which includes several distinct sets of rules, listed here:
Agency Programs
- Community Development Revolving Loan Fund Access for Credit Unions 12 CFR 705.
- National Credit Union Administration Central Liquidity Facility 12 CFR 725.
- Designation of low-income status; receipt of secondary capital accounts by low-income designated credit unions 12 CFR 701.34.
Capital
- Capital Adequacy 12 CFR 702.
- Adequacy of reserves 12 CFR 741.3(a).
Consumer Protection
- Nondiscrimination requirements [Fair Housing] 12 CFR 701.31.
- Truth in Savings 12 CFR 707.
- Loans in Areas Having Special Flood Hazards 12 CFR 760.
- Fair Credit Reporting; Duties of Users Consumer Report Regarding Address Discrepancies and Records Disposal 12 CFR 717, Subpart I.
- Fair Credit Reporting; Identity Theft Red Flags 12 CFR 717, Subpart J.
- Share Insurance 12 CFR 745.
- Accuracy of Advertising and Notice of Insured Status 12 CFR 740.
- Disclosure of share insurance 12 CFR 741.10.
- Notice of termination of excess insurance coverage 12 CFR 741.5.
- Uninsured membership shares 12 CFR 741.9.
- Member inspection of credit union books, records, and minutes 12 CFR 701.3.
The League will send out another comment call when the NCUA asks for feedback on other sets of regulations.
The RFC lists all the changes that the NCUA has issued, related to these regulations, since its last 10-year review.
Make your voice heard
The NCUA’s RFC asks 20 questions, but it says that “all comments related to any aspect of the review are welcome.” To make it easier for credit unions to share their thoughts, The League has prepared a fill-in-the-blank document that you can use. It includes all the questions plus space for additional thoughts you’d like to share. Feel free to answer as many of the questions as you’d like.
The form is anonymous, and The League will compile responses we receive and share them with the NCUA in our comment letter.
Please complete your form by Oct. 1, so that we can submit our comment letter by the Oct. 8 deadline.
If you have any questions, please reach out to The League’s SVP & General Counsel, Paul Guttormsson.