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The NCUA Board next week is set to issue two final interim rules: One related to the Central Liquidity Facility (CLF) and one on asset thresholds pertaining to large credit unions. In addition, the board will receive a briefing on the NCUA Guaranteed Note (NGN) and Asset Management Estates (AMEs) Programs.

The meeting, scheduled to begin at 10 a.m. Eastern, will be available via livestream on the agency's website.

On the CLF, the Consolidated Appropriations Act extended the flexibility provided under the CARES Act to the NCUA to enhance credit unions' use of the CLF through Dec. 31. The interim final rule will likely extend these provisions to the end of the year.

Related to asset thresholds, as credit unions have seen a large influx of deposits over the past year resulting from coronavirus-related relief efforts and changes in members' financial habits, NAFCU has flagged concerns for credit unions approaching the $10 billion threshold, at which point the CFPB also has supervisory authorities.

NAFCU President and CEO Dan Berger earlier this year sent a letter to the NCUA Board asking it to consider issuing an interim final rule to provide parity with one issued last year by the federal banking regulators that provides community banks with a transition period through 2022 to either reduce their size or prepare for new regulatory and reporting requirements. He also outlined other considerations for adjusting how the NCUA calculates total assets, as well as how the agency can better coordinate supervision with the CFPB for credit unions over the $10 billion asset threshold.

The NCUA last year received an update on the NGN and AMEs Programs, which revealed former capital holders of the failed corporate credit unions (U.S. Central, WesCorp, Members United, Southwest, Constitution) were set to see distributions of approximately $2.5 billion. Southwest was the only one to issue a distribution last year, and WesCorp members are not expected to receive a distribution under any scenario.

NAFCU will continue to advocate for the NCUA to evaluate all available options to make whole those credit unions who paid into the TCUSIF or invested in the corporate credit unions, including additional distributions from the SIF.

NAFCU will monitor next week's meeting and update credit unions on the implications of the interim final rules.