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NCUA seeks feedback on raising operating fee exemption threshold
The NCUA Board Thursday issued a notice and request for comment (RFC) on adjustments to its operating fees methodology as it considers raising the exemption threshold for federal credit unions (FCUs) that pay operating fees from $1 million to $2 million.
The notice would also make annual inflationary adjustments to the threshold in the future. The board is seeking feedback on the potential adjustments and whether – and if so, how – the board should modify the current three-tier operating fee schedule.
In 2020, the NCUA published a request for comment on its methodology for determining its operating fee schedule. The agency also revised its treatment of capital project budgets and miscellaneous revenues when calculating operating fees, and made conforming changes to how it calculates annual inflationary adjustments to operating fee rate tier thresholds. NAFCU generally supported the board's proposals and reiterated that the NCUA should operate in a fiscally prudent manner that reduces waste and ensures FCUs' operating fees are not excessive.
In addition, the board approved issuing a proposed interpretive ruling and policy statement (IRPS) to reflect the transfer of the Minority Depository Institution (MDI) Preservation Program administration to Credit Union Resources and Expansion (CURE), update program features, and clarify the requirements to receive and maintain an MDI designation. NAFCU has advocated on behalf of both MDIs and community development financial institutions (CDFIs) on Capitol Hill, urging lawmakers to allow all credit unions to serve underserved areas and implement longer loan maturity limits for consumers.
The board also received a briefing on the new charter process and efforts by the NCUA to expedite chartering, which included:
- the phases of chartering, including the 180-day CURE review goal from receipt of completed application to charter issuance;
- updates to the new charter webpage, including updated templates and forms; and
- provisional chartering, which the NCUA hopes to pilot this year.
NAFCU will continue to advocate for the NCUA to pursue chartering and FOM reforms to support credit unions’ ability to serve all Americans.
Comments on the RFC and IRPS are due 60 days after their respective publication in the Federal Register. NAFCU will seek member feedback and provide the NCUA with comments.
The NCUA also alerted credit unions Thursday that it rescinded many of its pandemic-related guidance. The rescissions come as the federal government’s COVID-19 public health emergency declaration ended in April.